Our mission is to provide information and inform the UK general public of developments relating to this particular financial product. This could include information about the mis-selling of PCP Car Finance and how consumers can potentially make a complaint if they believe that they have been affected by the issues outlined in this blog.

Mis-sold PCP Car Finance Claims.

If you have purchased a new or used car in the last ten years using car finance, then you may have a valid claim which could be worth hundreds, if not thousands of pounds in compensation if you have been mis-sold the car finance agreement.

To check if you are eligible to claim, contact us today and we can find out for FREE.

We will tell you whether you have a claim and how much it could be worth.

Mis-selling of car finance agreements have been found in all the following instances:

  • All motor vehicle types, including new and used cars , trucks, vans, 4x4s
  • All vehicle financing options such as personal contract hire (PCP), hire purchase (HP), contract hire or a car loan

Are You A Victim Of Mis-sold Car Finance?

You may have a claim if you experienced any of the following when you purchased your car on finance:

  • You bought your car using a car finance plan in the last ten years.
  • You received bad advice on the options available to you for financing the purchase of the car.
  • You were only presented with a limited number or car finance options available to you.
  • You were not properly informed about the finance deal for the car.
  • You were not presented with the best interest rate that was available for you.
  • The interest rate on the car finance plan was not properly explained to you.
  • The car finance plan that you ended up taking was not affordable for you.
  • You were not made properly aware of the sales commission contained within your car finance agreement.
  • You were told that some commission for the car finance agreement was payable, but were not told the exact amount of commission.

How Much Can I Claim If I Have Been Mis-sold A Car Finance Plan?

The amount of compensation that you may be due will depend on the following:

  • How much the car finance loan was for. The higher the loan amount, the higher the claim value
  • The length of time of the car finance loan. The longer this period, the higher the claim value
  • The interest rate for the car finance plan that you were given. The higher this rate, the higher the claim value

It is estimated that the average claim value is around £1,100 for each case of mis-selling, but you may be able to claim more than this, depending on your answers to the questions above.

Starting My Claim.

Starting the claim process is easy and straightforward.

Just complete the online Claim Form, providing as many of the details requested as possible.

If you have purchased multiple cars using car finance plans over the last ten years, then please upload details for each of these.

How Much Does Your Service Cost?

We provide our claims service on a No Win No Fee, so if we do not recover any monies for you, then no fees will be payable.

UK Point of Sale Motor Finance Market

The Point of Sale motor finance market in the UK is substantial and estimated to be worth around £44 billion per annum. Point of Sale motor finance interest rates can be significantly higher than other types of borrowing, especially when financing used cars. The motor industry argues that new Point of Sale financing is a cost-efficient method of financing a car as they are often subsidised by the car manufacturer. Accordingly, the practice of loading interest rates on new cars is negligible. However, it is the used car sector where much of the bad practice has existed for many decades.

A recent report by the Financial Conduct Authority has identified that consumers may not always be getting the best interest rate for their car finance loan. Risk profile, “prime borrowers” may be paying significantly more for their loans, with the rate difference being paid as commission, by the finance lender to the car dealer.

High commissions are offered by lenders in return for increased volumes of new business. This commission structure cab also be seen as a requirement in the motor finance lending sector, due to the intense level of competition within this sector. Dealers and brokers have become accustomed to demanding higher commissions from lenders over the years.

With a typical finance deal, dealers and brokers can determine the interest rate to the customer and therefore seek to maximise the commission to the highest level throughout their sales process. Commissions are used in the sales process to contribute to the overall profitability of the dealer. This means that most of the profit made by car dealers is on used cars and relates to the financial commission rather than the actual car (metal). In some instances, the commission could contribute towards 70-90% of the brokers profits.

Dealer and brokers however, are generally not concerned with the profitability of the lender. It should also be noted that it is the lender that bears the ultimate risks of default and fraud.

Lenders tend to pay the commission to the brokers upfront and in cash, which arguably increases the dealer base rate and feeds through to the end consumer due to the cost of provisioning for this upfront cash payment.

Generally, there is little or no commission disclosure to the customer by either the dealer or the lender – this is against the recommended practice by the Financial Conduct Authority.

Financial technology used by dealers and brokers at the Point of Sale can be utilised to optimise the commission level paid to the dealers – usually without the consumer having any knowledge of this practice.

In summary, the commission structures in the motor finance industry are used as a vital part of the sales process and contributes both directly and indirectly towards teh profits of teh dealers and brokers. In addition, the these structures and incentives are used to increase the finance penetration at the dealers, both at the group and individual broker level.

About the Problem

When most people purchase a car, it tends to be the actual car (the physical product) that is at the forefront of most people’s mind. If they are purchasing the car on finance, typically using a loan or payment plan, then the finance for the car tends to be a secondary or ancillary consideration for most consumers.

Following several reports published by the Financial Conduct Authority (FCA), the heart of the matter relates to four key issues:

  • Commission Payments – A conflict of interest has been identified in many cases examined by the regulator  between payments of commission between lenders and car finance brokers. This means that some borrowers can end up paying higher interest costs than necessary
  • Affordability – Firms in the motor industry may not be taking the necessary steps to ensure that they lend responsibly, especially with respect to ensuring that borrowers can actually afford the car finance
  • Provision of Information – Firms in the motor industry may not have provided adequate, and transparent information to customers during the sales process of the vehicle, so that the borrow can make an informed decision as to whether the finance on offer is suitable for them
  • Car Values – The value of the car could be more at the end of the deal i.e. the borrower was misled about the prospect of equity in the car.


Understanding our PCP Car Finance Claims Information Process

If you have purchased your car using “Car Finance”, also known as Personal Contract Plan (PCP) in the last few years, you may have heard stories about mis-selling or you may be worried that you were mis-sold the Car Finance. You may read stories about problems associated with PCP Car Finance deals and suspected that you have overpaid on the finance or loan you took out to purchase the car.

What Is PCP Car Finance Mis-Selling?

PCP stands for Personal Contract Plan and is a type of car finance plan or loan that allows the holder of the loan to be able to afford to purchase the car by making lower monthly payments on the finance of the car, compared to other bank or personal loans to purchase a new car or even a second-hand car. As these loans offer lower monthly repayments on a car purchase, they may be better suited to some customers than others.

To take out a PCP Car Finance loan, you can either rely on the advice of a financial adviser working for the car dealership or if you are comfortable with and are experienced in making car purchases, you can do it yourself.

Problems arose when financial advisers recommended certain Car Finance plans to customers via PCPs without explaining either the risks of these plans or the actual cost of finance. For some, the results mean that many customers have overpaid on their loans by paying higher interest rates on the loan.

A financial adviser usually selects a PCP Car Finance plan on the customers’ behalf and has a duty to ensure that the loan chosen is affordable for the customer as well as meeting their needs and objectives.  However, some financial advisers have placed a customer with a loan that is neither affordable for them, riskier for them nor more expensive for them with higher interest rates payable than would otherwise have been the case. This practice has resulted in customers making substantial higher interest payments than would otherwise have been the case.

Which Car Finance Brokers Provided PCP Car Finance Agreements?

There have been a number of cases of serious and ongoing failings by car finance brokers dealing with PCP Car Finance. These have been to do with the product appropriateness, affordability and disclosure of commission payments by the broker to the customer. The car finance broker is required to make sure that they undertake the necessary suitability checks to meet the borrower’s needs.

Where car finance brokers have mis-led borrowers, not fully disclosed the risks involved or failed to provide sufficient information about the car finance, a potential claim can be made. Car finance brokers must also disclose any potential conflicts of interest as a result of recommending certain products to customers that are influenced by the payment of commission by the lender to the broker. As a result, many borrowers may have ended up paying much more on their borrowings than they should have done if a more suitable car financing product had been recommended by the broker.

If your PCP Car Finance loan was arranged by one of the following car finance dealers, brokers or lenders, you are urged to get in touch for FREE mis-sold PCP information (see Dealers & Brokers and Lenders pages for complete list):

    • Ald Automotive Limited
    • Arnold Clark Automobiles Limited
    • Arval UK Limited
    • BMW Financial Services (GB) Limited
    • Caffyns Public Limited
    • Close Brothers Limited T/A Close Brothers Motor Finance
    • Clydesdale Financial Services Limited T/A Barclays Partner Finance
    • FCA Automotive Services UK Limited
    • FCE Bank Plc
    • Group 1 Automotive UK Limited
    • Johnson Cars Limited
    • Marshall Motor Group Limited
    • Mercedes-Benz Financial services UK Limited
    • Pendragon Finance and Insurance Services Limited
    • RCI Financial services Limited
    • Santander Consumer (UK) Plc
    • Sytner Group Limited
    • Thurlby Motors Limited
    • Volkswagen Financial Services (UK) Limited


If you would like further information about PCP finance claims, please enter your name and email address below.