PCP and HP Finance Compensation Guide 2024

In this 2024 guide, we will help walk you through the ins and outs of car finance claims. We'll explain why you're due compensation, how to tell if you’re eligible, the amount you may be able to claim in damages and the process of securing compensation. So let’s dive in:

How to claim

You can begin your claim for being mis-sold on your PCP car finance agreement by using our free online checker to see if you are eligible. The checker will ask a few quick questions to see if you meet the criteria. We will let you know if you qualify at the end of the check, ensuring you have an answer in minutes without needing to speak to a member of our team.

If you would like to proceed with a claim or find out how much you may receive, you can fill out a no-obligation form with your contact details. We will then be in touch to discuss your claim further.

Our experts will explain the process and what documents are required, such as a copy of your loan agreement. We will reach out to your lenders and negotiate a compensation settlement that accurately reflects the damage caused by the mis-selling.

We will keep you updated on your claim every step of the way.

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What is the claim?

An investigation by the Financial Conduct Authority (FCA) has found that car finance lenders have mis-sold customers when selling vehicles on finance plans. Lenders charged customers with higher interest rates to ensure they received higher commission fees.

This type of claim is to right the wrongs of being mis-sold car finance on a PCP or HP agreement. You are a victim of mis-selling if you were not told about commission payments when taking out your loan. Dealers must fully explain your financial agreement before you sign it, including fees, payments and terms and conditions.

By being mis-sold finance, you will have unfairly paid more for the vehicle than you should have due to inflated interest rates. The claim will help you recover the fees lost due to undisclosed commissions.

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Who can claim?

Several factors influence whether someone can make a claim or not. First of all, to make a compensation claim with PCP Claim UK, you need to have bought the car on a finance agreement. Claims can be made on both PCP and Hire Purchase agreements. The vehicle must be your own, not a company car. Secondly, you must be a UK resident and have bought the car within the last ten years.

If you meet the above criteria, the next step is to assess whether you were mis-sold car finance. We will work with you to gather vital documents and identify whether there is sufficient evidence that you are a victim of mis-selling. Examples of mis-selling include paying a high interest rate or not being told about sales commissions.

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How long does it take?

The length of a compensation claim for mis-sold car finance can vary from case to case. The early stages of a claim involve gathering essential documents to identify if you have been mis-sold on your loan agreement. Therefore, it can speed up the process to have these documents to hand, otherwise you may have to request them from your lender.

It can help to have an expert managing your claim from the very beginning. One of the first critical steps of a mis-sold finance claim is to discuss the situation with the dealership or finance company. If they accept responsibility, it can take just a few months to reach an agreement and conclude the claim.

If the dealership or finance company denies responsibility, the claim may have to be forwarded to the Financial Ombudsman Service, which will decide where liability lies and whether compensation should be awarded. In this circumstance, it can take between 12 to 18 months for a claim to reach conclusion.

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