What is meant by mis-sold car finance?
By law, lenders must make you aware of everything you need to know to make an informed decision when purchasing a finance deal. This includes knowing all the costs, risks and limitations of each product.
What car finance can be mis-sold?
If you’ve bought a car on finance, it may have been mis-sold to you, usually as a result of poor, or lack of, advice. Many types of car finance can be mis-sold, including Hire Purchase Agreements (HP), Lease to Purchase but in particular Personal Contract Plans (PCP).
How can car finance be mis-sold?
1 – Undisclosed Commission
Have you heard about the Plevin Ruling for PPI claims? Well, similarly to that, many lenders did not disclose the amount of commission involved when setting up car finance, which often led to a conflict between lenders and brokers/dealerships.
2 – Hidden Charges
Have you found yourself in a car finance contract with extra costs you weren’t expecting, like balloon payments and extra mileage charges? Well, you should have been fully aware and informed of these charges prior to entering the agreement, and, if you weren’t then you could potentially make a claim.
3 – Sufficient affordability checks
If you were advised to take on a certain finance deal, but found yourself struggling to make the payments, this could have been mis-sold to you. If the product was not an economically viable option for your affordability and lifestyle, then this is misleading and contravenes one of the FCA’s main policies of treating customers fairly.
4 – The structure of your payment plan
So, you came to the end of your agreement to not only be hit with additional charges such as the aforementioned mileage charges and balloon payments, but it also came to light that you weren’t in ownership of the vehicle until further payments had been made. If you were left in the dark about this, then again, you could have a claim.
What can I do to make a car finance mis-selling claim?
The easiest way to make a claim is by enquiring here. From here our team of financial mis-selling specialists will be able to quickly identify all the areas in which your deal may have been mis-sold and can then initiate an appropriate complaints process on your behalf and put you in touch with a solicitor who can progress your claim.
However, everyone is eligible to make a complaint directly to their lender, and if unsuccessful, or your lender is no longer trading, you can also escalate the compliant to the Financial Ombudsman Service yourself.