FAQ

Was my car finance agreement mis sold?

We have found the main issues around mis sold car finance are:

• Undisclosed commissions

• High Interest rates

• Issues with the balloon payment

• Unable to terminate the agreement due to negative equity

• Damage charges

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Some people feel that how the car finance especially PCP finance works was not explained and others are saying they should never have been able to obtain the finance initially.

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What types of car finance can I claim?

You can claim the following types of car finance:

• PCP - Personal Contract Purchase

• HP - Hire Purchase

What is being done to prevent car finance mis selling?

The FCA estimate that mis-sold PCP car deals are costing consumers £300 million annually. They have published a public report outlining the findings of their investigation and will be bringing it to the attention of relevant trade bodies so industry-wide action can be taken.

They'll also be following up with individual firms who didn't meet FCA standards when investigated. They "may consider supervisory or enforcement action" where necessary to make sure that dealers follow through with changes to their practices.

One of the FCA's biggest concerns is the commission arrangements that many retailers have. To combat this, they're working on policy changes that would affect commission structures and ensure that customers are better informed before signing an agreement. The FCA will be reviewing PCP commission models and are currently considering limiting or banning them in order to prevent further mis-selling.