Mis-Sold Car Finance | Undisclosed.co.uk

Undisclosed Car Finance Commission Claims

Have you bought a car using car finance in the past 15 years? Figures suggest it is likely you were charged undisclosed commission on the finance agreement. Find out if you could claim back that hidden commission today.

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In their ground-breaking report, the FCA found that commission was paid on 95% of UK car finance PCP and HP agreements. We believe that the majority of customers taking out these finance agreements were not told about this commission, meaning they are entitled to compensation.

If you have purchased your vehicle via a car finance deal, either your lender or the broker are obliged to inform you of exactly what is involved in that deal. You must make an informed decision so that you know it is right for you, and any salesperson cannot act in their own best interest. If you were not informed of any commissions you could be owed thousands in compensation.

If you believe you have been wrongly sold a finance deal and feel trapped, filing a claim could help you exit the agreement and receive any commission payments back in compensation. Even if you haven’t lost money, if the car finance deal isn’t right for you and your financial situation you can potentially bring forward a claim for mis-selling.

At Undisclosed.co.uk, we are able to identify if you have paid any undisclosed commission on your car finance agreements. Using our state-of-the-art technology powered by Experian softsearch, we can search for any PCP or HP agreement and see which ones are potentially valid. Use our free checker tool today to discover if you are eligible.

What Is The Undisclosed Commission Scandal?

The Financial Conduct Authority (FCA) first shed light on the scandal in 2019. They found that out of the 122 car dealerships visited by mystery shoppers only 11 car dealerships confirmed that commission will be added on this type of deal.

Using their findings as a basis for a claim, you may have been a victim of the car finance scandal if you have received negligent or poor advice in relation to your car finance options or if you were not made aware of any commission being charged within the agreement.

Both Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements are essentially a loan to help purchase a car. Car dealerships offer them for those who do not have the upfront cash to purchase a vehicle.

However, unlike a normal personal loan, you won’t be paying off the full value of the car, and you won’t own the car at the end of the deal, unless you agree to pay the final balloon payment.

The problem with potentially misleading PCP and HP finance agreements comes from a lack of information being given to you, the customer, at the time of purchase. This is usually down to miscommunication and/or wrongdoing on the lender’s part, or to do with the fact the salesperson wants a quick and easy sale so they can earn commission.

Car finance deals can be relatively complex and sometimes have commission attached to them. This means that it is often in the salesperson’s best interest to sell you a finance agreement, even if it is not in your best interest.

Examples of The Undisclosed Car Finance Scandal

Some of the main reasons you may have a PCP or HP car finance claim are:

Undisclosed or hidden commission
Thousands of customers may have been completely unaware of any commission payments. If the car salesperson received a fee or commission for bringing the car finance deal to the bank, and the finance provider has not informed you of this, that is a hidden, secret, or undisclosed commission. The finance provider or bank must inform you of ALL of the fees within the transaction.
High-pressure sales tactics
If you were put under pressure to opt into a finance agreement that you didn’t feel was right for you, you may be able to claim compensation. The salesperson needs to give you enough time to assess the deal offered and potentially find an alternative option. If they are earning commission, they sometimes do not give alternative options.
Lack of proper affordability checks
Many customers enter into loan agreements that are not suited to their financial situation. This leaves them trapped by the PCP or HP deal, where they are not in a position to make payments throughout the whole term of the agreement.
Inflated prices and overcharges in interest
Some cases show that customers are overcharged by over £1,100 interest in order for the dealership to obtain a higher commission pay-out.
Emissions Scandal Claims
Our panel are also experts in bringing forward a diesel emissions claim. We believe that if you entered the PCP or HP agreement on the basis that you were receiving a particular type of car with a particular set of emissions, then you have been misrepresented. If this is the case, our panel look to claim compensation via the PCP or HP agreement you entered at the time.

The Undisclosed.co.uk Process

Our process means that claiming is as straightforward as possible for you. Our expert panel do all of the groundwork in discovering if you are eligible, including searching for your finance agreements.

Here is our process, from start to finish:

1Check Your Eligibility – Use our free tool to find all potentially eligible car finance agreements in your name

2Provide Some ID – If we find car finance agreements in your name, you then provide us with some ID. This allows us to request required documents from your lender(s)

3Build Your Case – Once we have received the documents back from your lender, we assess it against the criteria of our panel members. If it meets the criteria, we will refer it to one of our panel members

4Gain Compensation – Once we pass you onto our legal panel, they will manage your case and help you claim your deserved compensation

This process means you do not have to worry about contacting your lender about the finance agreement. You do not have to search through files and emails to find the original document, as our system handles all of that for you.

Who Is Eligible To Claim?

You could be eligible to claim hidden car finance commission compensation if:

You took out a car finance agreement between 2014 - 31st Dec 2020
It is found that undisclosed commission was paid on this agreement

Our expert legal panel will be able to determine whether you are eligible or not, and will guide you through the whole process.

How Much Can I Claim For A Car Finance Claim?

Evidence suggests that some customers have been charged £1,100 more than they should have due to the potential hidden commission. While the exact amount of compensation will vary, there are several factors to take into account. These include:

The size of the loan – the larger the loan, the more you’ll be owed
When you signed up – the longer you have been paying the loan off, the more you’ll be owed
The interest rate and the difference between the rate you should have been quoted

Our expert panel of solicitors will be able to let you know if you are eligible to claim car finance compensation and, if so, how much you might be able to retrieve in compensation.

What Is The Evidence Of The Car Finance Scandal?

The UK’s financial watchdog, the Financial Conduct Authority, produced a report in March 2019 into the dealings of PCP and HP agreements within the automotive industry.

In their investigation in regard to the mis-selling of car finance, they found that:

Out of the 122 car dealerships visited by mystery shoppers only 11 car dealerships confirmed that commission will be added on this type of deal.
Customers were typically charged £1,100 more through a car finance agreement than through other financing plans
Only 31% of finance brokers explained to PCP/HP customers that they do not own the vehicle until all payments have been paid
Only 28% of finance brokers disclosed the total amount payable, and explained the consequences of a missed payment

Figures show around nine in 10 new cars in the UK are bought on finance, meaning this scandal could affect millions of UK residents.

Why Should I Use Undisclosed.co.uk?

If you believe you have a mis-sold car finance claim, our expert panel of solicitors can help bring your claim forward. Using our free tool, we can gather all of the relevant information to bring a claim against your lender, meaning the process is as straightforward for you as possible.

Once we have found your finance agreement for you, our specialist car claims solicitors are able to bring a claim on your behalf and not only hold dealerships and finance providers to account, but also get you compensation while doing so.

At Undisclosed.co.uk we make claiming for compensation easy:

Claim Compensation for Current Vehicles
100% No Win, No Fee
No Obligation Review Of Your Case

Claim Compensation for Past Vehicles
Panel of Finance Claim Specialists
Easy Claim Process

If you would like to see if you are eligible to claim hidden car finance commission compensation, use our free eligibility tool today to check if you have a valid claim. It is completely free to use and our panel all work on a No Win, No Fee basis.

Some Key Questions

1How Much Can I Claim For A Mis-Sold Car Finance Claim?

Evidence suggests that some customers have been charged £1,100 more than they should have. While the exact amount of compensation will vary, there are several factors to take into account. These include:

The size of the loan – the larger the loan, the more you’ll be owed
When you signed up – the longer you have been paying the loan off, the more you’ll be owed
The interest rate and the difference between the rate you should have been quoted

Our expert panel of solicitors will be able to let you know if you are eligible to claim mis-sold car finance compensation and, if so, how much you might be able to retrieve in compensation.

2 Is There Evidence Of This Mis-Selling?

The UK’s financial watchdog, the Financial Conduct Authority, produced a report in March 2019 into the dealings of PCP agreements within the automotive industry.

In their investigation in regard to the mis-selling of Car Finance (PCP), they found that:

Out of the 122 car dealerships visited by mystery shoppers just 11 car dealerships confirmed that commission will be added on this type of deal.
Customers were typically charged £1,100 more through a car finance agreement than through other financing plans
Only 31% of finance brokers explained to PCP customers that they do not own the vehicle until all payments have been paid
Only 28% of finance brokers disclosed the total amount payable, and explained the consequences of a missed payment

3Why Should I Use Undisclosed.co.uk?

If you believe you have a mis-sold car finance claim, our expert panel of solicitors can help bring your claim forward.

Our specialist car claims solicitors are able to bring a claim on your behalf and not only hold dealerships and finance providers to account, but also get you compensation while doing so.

At Undisclosed.co.uk we make claiming for compensation easy:

Claim Compensation for Current and Past Vehicles
100% No Win, No Fee
No Obligation Review Of Your Case
FCA Regulated
Panel of Finance Claim Specialists
Easy Claim Process

If you would like to speak to an expert member of our Mis-Sold Car Finance Claims Panel, you can do so by completing our online form.

Claims of this nature can be worth anything between £2,000 - £500,000. It all depends on:

How much energy your business uses
How much you are currently paying
How long you have been paying
How much commission your broker has taken

Our expert panel will be able to go through your contract and determine whether there has been any mis-selling and, if so, how much you might be able to claim. This will all be explained in plain English, with no hidden surprises along the way.

A successful business energy mis-selling claim looks like:

Claim compensation for the mis-selling of the contract
Claim the amount you have paid to date, plus any interest
Legally have your business energy contract ended

You can also have peace of mind knowing you are not paying over the odds for your business energy.

Our team will identify whether there has been any mis-selling. This may present itself like so:

You paid no broker fee
The choice of energy contracts presented was limited
You were encouraged to leave a current contract
There was no contact with the energy supplier
There was a hidden commission

No Win No Fee Claims

Here at Undisclosed.co.uk, we believe every business should be able to access justice, particularly if they have been conned out of thousands of pounds by rogue energy brokers. This is why we offer all of our undisclosed business energy claims on a No Win, No Fee basis.

If your claim is unsuccessful, you will have no fees to pay to us. We will explain this is full detail over the phone before your case is taken on.

For example, an energy contract may be set out like so:

Cost Of Energy 15p per kWH
Broker Commission 2p per kWH
Your Energy Bill 17p per kWh
Energy Supplier Pays 2p per kWh to Broker

In the above example, the broker will have told your company that 17p per kWH is the best price out there. What you and your business don’t see is that 2p of that is actually the broker’s commission. This means every month, you are paying the broker, for the duration of the contract. To put this into context, this would mean for one year energy contract:

Annual consumption: 300,000 units
Your annual energy bill: £45,000
Hidden Commission to broker: £6,000

What Does The Mis-Selling Look Like?

One of the main reasons the business energy mis-selling goes unnoticed is because of how it is worked into the contract. It is quite complex and, therefore, many business owners completely miss the mis-selling.

Crafty brokers conceal the mis-selling within the actual monthly energy bill, rather than a one-off, easily spotted commission fee.

This then means the broker will be receiving commission for the length of the contract, every time your bill comes out during the month.

This practice can lead to businesses overpaying for their business energy, in the thousands.

Most Frequently Asked Questions

Whats is this UNDISCLOSED Commision Claim?

The body of law relevant to the question of ‘secret commission’ payments stems from a 2007 Court of Appeal case in the name of Wilson & Anor v Hurstanger Ltd [2007] EWCA Civ 299 (04 April 2007). In this judgment, the borrower Mr Wilson was introduced to Hurstanger Ltd by an independent mortgage broker. In addition to a broker fee that was added to the loan, Hurstanger also paid the broker a further commission of £240. Although Mr Wilson was informed by Hurstanger that a commission was to be paid, they failed to disclose the exact monetary amount that was to be paid. Accordingly, the Court found that the mortgage broker was in breach of his fiduciary duty to the borrower. Equally, the Court found that Hurstanger, the lender, was an accessory to this breach, and effectively induced the broker to breach his duty. The Court ordered Hurstanger to compensate Mr Wilson up to the amount of the commission plus interest.
Do I need to use a claim management company?

You are not required to use a claims management company to pursue your claim. You have the right to go direct to your adviser, or to use the Financial Ombudsman Service (www.financial-ombudsman.org.uk http://www.financial-ombudsman.org.uk) to seek redress independently and free of charge.
What do we mean by ‘non-disclosure of commission’?

In a previous case, the Court ruled that failure by the lender to tell the customer about high commissions rates made the relationship between the lender and its customer unfair under the Consumer Credit Act 1974.
Is there a time limit on such claims?

For the best chance of success for a claim on your behalf, the agreement should either still be active or you should have finished paying for within the last six years.

If you are unsure whether your particular case is eligible, don’t worry! We can still make an enquiry on your behalf.
Did my broker receive undisclosed commission?

If you used a broker and paid a broker fee it is likely the broker received additional undisclosed commission, it was common practice. You may be eligible to claim a refund of the commission.
What duties do brokers owe to their customers?
1. Act loyally for a borrower.
2. Not enter into a conflict of interest
3. Not make a secret profit from their clients
4. Disclose any profit made to their clients
5. Provide services of a reasonable standard
6. Act in accordance with the standard reasonably expected of an independent Financial Adviser.

Easy 3 Steps to Claim

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If you are eligible, let our panel handle the rest of the claim

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Are you ready to find out if your PCP contract has been mis-sold?
our team can tell you whether you are eligible to claim thousands in compensation.

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Important Information

Fairweather Group Ltd t/a Undisclosed.co.uk do not give legal advice; Our service is limited to the process and administration of Car Finance Compensation claims. You do not need to use a claims management company to make a claim. You have the right to use the Financial Ombudsman Service to seek redress for free.

The No Win, No Fee Success Fee for getting your Car Finance Compensation is based on which expert panel member we refer you to. The maximum the legal panel will charge as a success fee is 48% inc. VAT. There may be a termination fee if you cancel your claim with a panel member after the cooling off period. We are paid a referral fee by our panel members for a successful referral. Fairweather Group Ltd will not charge you for our service.

Check Your Eligibility Now For a REFUND On The Interest & Fees You Paid On Your Car Finance Agreements

If You Were Convinced To Use The Expensive Car Finance From A Dealership And Weren't Told About The Secret Commissions They Received You Could Be Eligible For A Refund

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Undisclosed Car Finance Commission Claims

What Is The Undisclosed Commission Scandal?

Examples of The Undisclosed Car Finance Scandal

The Undisclosed.co.uk Process

Who Is Eligible To Claim?

How Much Can I Claim For A Car Finance Claim?

What Is The Evidence Of The Car Finance Scandal?

Why Should I Use Undisclosed.co.uk?

Some Key Questions

1How Much Can I Claim For A Mis-Sold Car Finance Claim?

2 Is There Evidence Of This Mis-Selling?

3Why Should I Use Undisclosed.co.uk?

No Win No Fee Claims

For example, an energy contract may be set out like so:

What Does The Mis-Selling Look Like?

Most Frequently Asked Questions

Easy 3 Steps to Claim

Get In Touch

Discover

Claim

Start Your Free Review Today

Important Information