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.
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.
“Some motor dealers are overcharging unsuspecting customers over £1000 in interest charges in order to obtain bigger commission payouts for themselves. This is unacceptable.”
Jonathan Davidson, former director of supervision for retail and authorisations at the FCA
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.
Some of the main reasons you may have a PCP or HP car finance claim are:
“We have around 200 complaints from consumers unhappy about the levels of commission they’ve paid on their car finance agreements.”
Bea Lovestone, policy advisor at the Financial Ombudsman Service
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:
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.
You could be eligible to claim hidden car finance commission compensation if:
Our expert legal panel will be able to determine whether you are eligible or not, and will guide you through the whole process.
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:
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.
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:
Figures show around nine in 10 new cars in the UK are bought on finance, meaning this scandal could affect millions of UK residents.
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:
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.