If you’ve financed a vehicle through Black Horse Finance, you might be entitled to compensation due to mis-sold Personal Contract Purchase (PCP) agreements. Lloyds Banking Group, the parent company of Black Horse, has set aside £450 million to address potential claims. Understanding your rights and the claims process is crucial to determine if you’re eligible for a refund.
Understanding Mis-Sold PCP Agreements
A PCP agreement is a popular method of financing vehicles, allowing consumers to pay lower monthly instalments with a final balloon payment at the end. However, mis-selling occurs when:
- Undisclosed Commissions: Dealerships received commissions from lenders like Black Horse without informing customers, potentially leading to biased recommendations.
- Unclear Terms: Customers weren’t fully informed about the financial implications, including interest rates and balloon payments.
- Unsuitable Agreements: The finance agreement didn’t align with the customer’s financial situation or needs.
The £450 Million Compensation Fund
In response to regulatory scrutiny and legal challenges, Lloyds Banking Group has allocated £450 million for potential compensation related to mis-sold car finance agreements through Black Horse. This provision underscores the seriousness of the issue and the potential scale of affected customers.
How to Determine If You Have a Claim
Consider the following to assess your eligibility:
- Agreement Period: Did you enter into a PCP agreement with Black Horse between April 2014 and January 2021?
- Disclosure of Commissions: Were you unaware of any commissions paid to the dealership by Black Horse?
- Clarity of Terms: Were the terms, especially regarding interest rates and final payments, clearly explained to you?
If you answered “yes” to these questions, you might have grounds for a claim.
Mis-sold Vehicle Finance Claims Checker
Our mis-sold car finance claims calculator below estimates the level of compensation you may be able to reclaim for a mis-sold car finance agreement.
Add the value of your vehicle, the length of your agreement, and the interest rate you paid to the calculator below. Then, compare this against a rate that you may have been offered if you weren’t mis-sold.
Disclaimer : The Mis-sold Car Finance Claims calculation is illustrative, and under no circumstances should it be used or relied upon in the pursuit of a claim. If you need more help and clear understanding Contact National Claims.
How Much Compensation Can You Claim?
The compensation amount varies based on factors such as the size of the loan, the interest rate, and the commission involved. Some claimants have received refunds of over £1,000. It’s essential to consult with a professional to get an accurate estimate based on your specific circumstances.
Steps to Initiate Your Claim
- Gather Documentation: Collect all relevant paperwork, including your finance agreement and any correspondence with Black Horse or the dealership.
- Submit a Complaint to Black Horse: Utilise Black Horse’s online commission complaints form to lodge your complaint.
- Seek Professional Assistance: Engage with claims management companies or solicitors experienced in mis-sold finance claims. National Claims can connect you with seasoned solicitors to guide you through the process.
- Escalate if Necessary: If unsatisfied with Black Horse’s response, you can escalate the matter to the Financial Ombudsman Service for an independent review.
Why Act Now?
The financial landscape is evolving, with significant legal rulings impacting the car finance industry. For instance, a recent Court of Appeal ruling deemed it unlawful for lenders to pay commissions without informing borrowers, potentially leading to substantial compensation claims. Acting promptly ensures you don’t miss potential compensation due to time limitations on claims.
Frequently Asked Questions – Mis-sold Vehicle Finance
Q1: What is a PCP agreement?
A: A Personal Contract Purchase (PCP) is a vehicle finance agreement where you pay lower monthly instalments with a final balloon payment to own the car outright.
Q2: How do I know if I was mis-sold my PCP agreement?
A: If key information, especially about commissions or financial terms, wasn’t disclosed or was misleading, you might have been mis-sold.
Q3: Can I claim if I’ve already paid off my PCP agreement?
A: Yes, you can still claim if you believe the agreement was mis-sold, even if it’s fully paid off.
Q4: How long does the claims process take?
A: The duration varies, but with professional assistance, some claims are resolved within a few months.
Q5: Are there any costs involved in making a claim?
A: Many solicitors operate on a no-win, no-fee basis, meaning you only pay if your claim is successful.
Q6: What if I don’t have all my finance documents?
A: Professionals can often obtain necessary documents on your behalf, so it’s still worth pursuing a claim.
Q7: Can I claim against other lenders besides Black Horse?
A: Yes, if you had similar experiences with other lenders, you might be eligible to claim against them as well.
Q8: Is there a deadline for making a claim?
A: While there’s no strict deadline, it’s advisable to act promptly to ensure your claim is considered.
Q9: Will making a claim affect my credit score?
A: No, pursuing a claim for a mis-sold agreement shouldn’t impact your credit score.
Q10: Can I handle the claim myself without professional help?
A: While possible, engaging professionals increases the likelihood of a successful and efficient claim process.
Conclusion
If you suspect that your PCP agreement with Black Horse Finance was mis-sold, it’s imperative to act swiftly. With substantial funds set aside for compensation and legal precedents supporting consumers, now is the time to seek what you’re rightfully owed. National Claims is here to connect you with experienced solicitors who can assist you throughout the claims process, ensuring you receive the compensation you deserve.
Contact National Claims today, and we will put you in touch with an expert solicitor who can guide you through the claims process.📞 Call us now free 0800 029 3849 or 📩 Submit an online enquiry to speak to our team. Your safety and well-being matter, and we’re here to help.
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