Mis-sold finance agreements have become a significant concern in the UK, particularly affecting consumers who have financed vehicles, including motorcycles. A pivotal question for those seeking redress is whether they can retain possession of their motorcycle while pursuing a compensation claim. Understanding the intricacies of mis-sold finance, the compensation process, and the implications for vehicle ownership is crucial for affected individuals.
Understanding Mis-Sold Motorcycle Finance
Did you buy a motorcycle, van or motorbike on PCP or Hire Purchase (not leasing) before 28 January 2021? If so, you could be due £1,000s back. The regulator, the Financial Conduct Authority (FCA), has launched a major investigation into hidden, unfair motorcycle finance commission. This could lead to billions of pounds of overcharged interest paid back to millions of people.
Mis-selling in motorcycle finance occurs when a lender or dealer fails to provide clear, accurate, and comprehensive information about the finance agreement. This can include undisclosed commissions, inflated interest rates, or unsuitable financial products that do not align with the consumer’s needs or financial situation.
Recent Developments in Mis-Sold Finance
In October 2024, a landmark Court of Appeal ruling stated that “consumers need to know all material facts including the amount of commission.” This decision has opened the door to potential court reclaims for all motorcycle finance commissions, including those related to motorcycles. However, it’s important to note that this ruling is likely to be appealed to the Supreme Court, which could result in different outcomes.
The Compensation Process
If you believe your motorcycle finance was mis-sold, your first step should be to file a formal complaint with the lender or dealer. They are required to investigate and provide a response to your concerns. If their response is unsatisfactory, you can seek further assistance. National Claims is here to guide you through the process and connect you with experienced solicitors who can help pursue your case.
The Financial Ombudsman Service (FOS) has reported a sharp rise in motorcycle finance complaints, with 11,817 cases recorded in the third quarter of 2024—more than double the number from the same period the previous year. This highlights the growing awareness of potential mis-selling issues in the vehicle finance sector.
Retaining Your Motorcycle During the Claim
A common concern among consumers is whether they can keep their motorcycle while pursuing a compensation claim. The compensation typically involves a refund of overpaid interest or commissions, rather than affecting the ownership of the vehicle. However, if the finance agreement is deemed entirely void due to mis-selling, there could be implications for ownership. It’s essential to seek legal guidance to understand the potential outcomes based on your unique circumstances. If you’re unsure about the process, contact National Claims. They will connect you with experienced solicitors who can provide expert guidance and support every step of the way.
Potential Compensation Amounts
The compensation amount varies depending on the specifics of the mis-selling. The FCA has suggested that for a typical £10,000 four-year motorcycle finance deal, a customer could have paid £1,100 more in interest due to undisclosed commissions.
Steps to Take if You Suspect Mis-Selling
If you believe you’ve been mis-sold a PCP motorcycle finance deal, follow these steps to file a pcp claim:
1. Review Your Agreement
Start by reviewing your motorcycle finance agreement. Look at the interest rate, the total cost of the loan, and any additional fees or charges. If something seems unclear or doesn’t match what you were told at the time of the sale, this could be an indication of mis-selling. If you’re unsure or need further guidance, don’t hesitate to contact us or submit an enquiry.
We will put you in touch with our experienced solicitors who are here to assist you in understanding your agreement and determining if you’re entitled to compensation.
2. Gather Evidence
Start by locating your motorcycle finance agreement and reviewing its terms. Pay attention to:
- Interest rates.
- Commission disclosures.
- Mileage restrictions.
- Payment schedules.
3. Seeking PCP Finance Claims Assistance
Reach out to National Claims, where our team analyses your situation and connects you with experienced solicitors who specialise in PCP finance claims. These professionals ensure a seamless claims process, using their expertise to thoroughly assess your case and guide you every step of the way.
Why You Should Act Now
The rise in pcp finance claims reflects a growing awareness of consumer rights. However, it’s essential to act promptly, as there may be time limits for filing a motorcycle finance claim.
Conclusion
Pursuing a compensation claim for mis-sold motorcycle finance is a viable option for consumers who have been unfairly treated. In most instances, you can retain possession of your motorcycle during the claims process. However, it’s crucial to understand the specifics of your situation and seek professional advice to navigate the complexities of the compensation process effectively. Staying informed about recent developments and understanding your rights will empower you to make informed decisions and seek the redress you deserve.
Making a Mis-sold Motorcycle Finance Deal with National Claims
At National Claims, we understand the financial burden and frustration that can arise from being mis-sold a Personal Contract Purchase (PCP) motorcycle finance agreement. If you believe you were misled or overcharged, we’re here to help you seek justice and compensation.
No Win, No Fee
At National Claims, we believe that everyone deserves access to legal support when dealing with mis-sold motorcycle finance. That’s why we work on a “No Win, No Fee” basis—meaning you won’t pay any upfront legal fees. The solicitor’s fees are payable only if your claim is successful, allowing you to take action against mis-sold motorcycle finance agreements without financial worry.
Customers pay up to 25% to 40% (incl. VAT) of the amount recovered towards solicitor costs, and if you cancel outside your cooling-off period, you may be charged a fee. Whether you’re dealing with a mis-sold motorcycle finance claim or seeking justice for other financial issues, our team is here to support you every step of the way.
