Were you misled into a car finance deal with hidden fees or unclear commission costs? Many UK drivers have unknowingly paid more than they should have through Personal Contract Purchase (PCP) agreements. If your lender or dealer failed to fully explain the finance arrangement, you may be entitled to compensation.
Misleading PCP Deals: A Growing Scandal in the UK
Have you ever wondered if your car finance deal was truly fair?
Thousands of drivers across the UK are now discovering they may have been mis-sold a PCP (Personal Contract Purchase) agreement. Many of these deals included hidden fees or commission structures that weren’t properly explained at the time of signing.
These practices are now under scrutiny from both the Financial Conduct Authority (FCA) and the courts. And if your finance provider failed to disclose key details—especially about dealer commissions—you might be owed £1,000s in compensation.
Unmasking the Hidden Costs of PCP Deals
PCP deals, while seemingly attractive with their low monthly payments, can conceal a myriad of hidden fees that significantly inflate the overall cost of your car finance agreement. These fees can include:
- Excessive interest rates: Lenders may charge inflated interest rates, significantly increasing the total amount you repay over the term of the agreement.
- Hidden admin fees: Administrative fees, often buried in the fine print, can add hundreds or even thousands of pounds to your finance agreement.
- Inflated balloon payments: The final balloon payment, required to own the car outright, can be much higher than initially estimated, leaving you with a financial shortfall.
- Unfair early termination fees: If you need to terminate your PCP agreement early, you may be hit with exorbitant fees that make it financially prohibitive.
- Misleading mileage charges: Exceeding the agreed mileage limit can result in hefty charges per mile, adding a substantial sum to your final bill.
Identifying Misleading PCP Practices
Misleading practices in the PCP market can take various forms, including:
- Pressure selling: Salespeople may use high-pressure tactics to rush you into signing a PCP agreement without fully understanding the terms and conditions.
- Misrepresentation of terms: Key information about the agreement, such as interest rates, balloon payments, and mileage limits, may be misrepresented or obscured.
- Failure to disclose hidden fees: Lenders may fail to adequately disclose hidden fees, leaving you with unexpected costs.
- Targeting vulnerable consumers: Some lenders may specifically target vulnerable consumers, such as those with poor credit histories or limited financial literacy.
Who Is Eligible to Claim?
You may have a valid claim if:
- You took out a PCP or Hire Purchase (HP) between April 2007 and January 2021
- Your finance was arranged through a car dealer or broker
- You weren’t clearly told about the commission the dealer earned
- You believe you were overcharged or misled on costs
Even if your contract ended or the vehicle is sold, you can still pursue a claim if the original agreement was unfair.
Mis-sold Car 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.
How We Can Help You Claim
Our team of experienced professionals is dedicated to helping you navigate the complexities of PCP agreements and claim the compensation you deserve. We offer:
- Free initial consultation: We offer a free, no-obligation consultation to assess your case and advise you on your options.
- Expert legal advice: We work with a network of specialist solicitors who can provide expert legal advice and representation.
- No win, no fee: We operate on a no win, no fee basis, so you only pay if we successfully recover compensation for you.
- Dedicated support: We provide dedicated support throughout the claims process, keeping you informed and updated every step of the way.
People Also Ask
1. What are hidden fees in PCP car finance?
Hidden fees often include undisclosed commissions paid to dealers for increasing your interest rate. Other examples are unexpected charges for early termination or mileage.
2. How do I know if my PCP deal was mis-sold?
If the lender or dealer didn’t clearly explain the full cost, interest rates, or commissions they earned, your agreement may have been mis-sold.
3. Can I claim for a car I no longer own?
Yes. Even if you’ve paid off the finance or returned the car, you can still claim if your original deal involved hidden or misleading terms.
4. How long do I have to make a PCP claim?
You usually have six years from the agreement date, or three years from when you first noticed the issue.
5. Do I need a solicitor to make a claim?
It’s not required, but working with a regulated solicitor—through National Claims—can improve your chances and reduce stress.
Taking Action Against Hidden Fees and Misleading PCP Deals
If you believe you’ve been a victim of hidden fees or misleading PCP practices, don’t hesitate to take action. Contact our team today for a free consultation and let us help you claim the compensation you deserve.
The Importance of Consumer Awareness
Raising consumer awareness about the potential pitfalls of PCP deals is crucial in preventing future victims of hidden fees and misleading practices. By educating yourself about the terms and conditions of PCP agreements and seeking professional advice when needed, you can protect yourself from financial exploitation.
Making a PCP Mis-selling Claim 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) car finance agreement. If you believe you were misled or overcharged, we’re here to help you seek justice and compensation.
Free Consultation
We recognise that every PCP mis-selling case is unique, and we’re here to offer you a free, no-obligation consultation to discuss your specific situation. During this consultation, we’ll listen attentively to your experience, gather relevant details about your PCP agreement, and assess the potential strength of your claim.
Our team will then connect you with a qualified solicitor from our panel who specialises in financial mis-selling claims, ensuring that you receive the expert legal representation needed to pursue your case effectively.
*Customers pay up to 25% (incl. VAT) of the amount recovered towards solicitor costs and if you cancel outside your cooling off period, you may be charged a fee.
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.
Click below to see why we are one of the most trusted claims management companies in the UK.
We’re proud of our excellent customer reviews
We thrive on delivering exceptional service and ensuring our clients’ satisfaction. Don’t just take our word for it. Check out some of our independent reviews to see what our clients have to say.
Excellent
This firm is excellent, they sorted out my car pay out and injury claim very fast, they always communicate with you all the time.
My accident case was dealt with confidence and with great result of the outcome, especially James kept me informed all the time.
I was very impressed at the way my inquiry was treated. I was listened to attentively and everything I needed to know was explained to me.
