5 min read
Are you stuck in a car finance deal that seems unfair? You're not alone. Personal Contract Purchase (PCP) agreements can be a great way to finance a new car. Unfortunately, not everyone gets a transparent and honest deal.
Imagine this: You walk into a car dealership, excited to find your perfect car. The salesperson seems friendly and helpful, but after signing the paperwork, you realise the monthly payments are much higher than anticipated. There might be hidden fees, a sky-high interest rate, or maybe you were pressured into a deal that doesn't fit your budget. The salesperson might have downplayed the total cost of the car, or they might have convinced you to take a longer loan term, which increases the overall interest you pay.
If this sounds familiar, you might have been mis-sold a PCP car finance deal. We understand how frustrating and overwhelming this can be. The good news is that you don't have to suffer in silence. Here at Justizia, we specialise in helping people who believe they were misled or pressured into car finance agreements that aren't right for them.
This article will guide you through everything you need to know about mis-sold car finance claims, including:
- Common signs you might have a claim.
- Factors that can affect your compensation.
- How Justizia can help you recover what you're owed.
By the end of this article, you'll not only know if you have a case, but you'll also feel empowered to take the following steps towards getting the compensation you deserve.
Mis-sold Car Finance Due to Discretionary Commission Arrangements?
A recent investigation by the Financial Conduct Authority (FCA) uncovered a concerning practice in car finance known as "discretionary commission arrangements" (DCAs) (Link back to original article). This scheme incentivised brokers (often the car dealerships themselves) to push higher interest rates on PCP and HP deals, potentially costing car buyers thousands.
The FCA review focuses explicitly on car finance agreements signed before January 28th, 2021. If you purchased a car during this period and suspect DCAs might have impacted you, here's what you should do:
- Review your paperwork: Look for any mention of discretionary commission arrangements in your car finance agreement.
- Contact your loan provider: If you find evidence of DCAs, contact your loan provider and ask about compensation. The FCA investigation is ongoing so be aware that responses might be delayed. When contacting your loan provider, be prepared to provide evidence of the mis-selling, such as the salesperson's promises, the terms of the agreement, and any other relevant documents.
- The Financial Ombudsman Service (FOS): If you're unhappy with your loan provider's response, you can escalate your complaint to the FOS. However, remember that complaints regarding DCAs must have been submitted to your lender between November 17th, 2023 and September 25th, 2024.
Important to Note:
- The FCA is expected to finish its investigation by September 2024. If it finds widespread misconduct, it will outline a process for consumers to receive compensation.
- Beware of claims management companies offering to handle your case for a fee. You can submit complaints to your lender or the FOS yourself at no cost.
Can You Claim for Mis-sold Car Finance (Outside of DCAs)?
Even if your car finance agreement wasn't affected by DCAs, you might still have a case for mis-sold car finance if:
- You financed a car in the UK between 2007 and the present.
- You believe the finance agreement should have been presented more fairly and explained more clearly.
- You ended up with an unsuitable or unaffordable repayment plan.
How Justizia Can Help
If you suspect you were mis-sold a car finance deal, don't hesitate to contact Justizia. Our legal experts will assess your situation at no cost and determine if you have a valid claim. We'll handle all the communication with the lender on your behalf and fight to get you the compensation you deserve. We have a proven track record of success, and we are committed to ensuring that our clients receive the compensation they are entitled to.
Take back control of your finances. Call Justizia today for a free consultation at 0330 818 3415 or email us at contactus@justizia.co.uk.
Want to learn more? Check out our website for more information on car finance claims and other legal services we offer. You can also follow us on social media for the latest updates!
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