Personal Contract Purchase (PCP) agreements have become a popular method for UK consumers to finance vehicle purchases. However, recent developments have highlighted significant issues related to mis-selling and undisclosed commissions, potentially affecting millions of consumers.
FCA’s Investigation into Mis-Sold Car Finance
The Financial Conduct Authority (FCA) has launched a comprehensive investigation into the car finance industry, focusing on the prevalence of undisclosed commissions in PCP agreements. The FCA estimates that as many as 60% of car finance agreements involved hidden commission arrangements, leading to consumers unknowingly paying higher interest rates.
Court Ruling Against Barclays
In a landmark decision, the Court of Appeal ruled against Barclays Bank over undisclosed commissions paid to brokers arranging car finance loans. The court found that Barclays failed to disclose these commissions to consumers, resulting in higher interest rates and unfair treatment. This ruling sets a significant precedent for future mis-selling claims in the car finance sector.
Potential Compensation for Affected Consumers
Consumers who entered into PCP agreements between April 2007 and January 2021 may be eligible for compensation if they were mis-sold their finance agreements. Mis-selling can occur if the salesperson failed to disclose commissions, did not explain all available finance options, or did not conduct proper affordability checks. Affected individuals are encouraged to review their agreements and seek legal advice to determine if they are entitled to compensation.
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 National Claims Can Assist
Navigating the complexities of mis-sold PCP claims can be challenging. National Claims can connect you with experienced solicitors who specialise in car finance mis-selling cases. Their expertise ensures that you receive the guidance and representation necessary to pursue your claim effectively.
Conclusion
The recent developments in the car finance sector underscore the importance of transparency and fairness in financial agreements. Consumers who believe they have been affected by mis-sold PCP agreements should seek professional advice to explore their options for compensation.
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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