Car finance mis-selling has led to millions in refunds for UK consumers. With growing awareness, more drivers are checking if they were overcharged. If you took out a PCP or HP deal, you might be entitled to compensation.
What Is Mis-Sold Car Finance?
Car finance mis-selling happens when lenders fail to disclose key details. Many drivers were misled about commission structures, interest rates, and affordability checks. The Financial Conduct Authority (FCA) has been investigating unfair practices in the sector.
Why Are More Consumers Reclaiming Money?
Recent FCA investigations revealed lenders manipulated interest rates to boost commission. Borrowers were often unaware they were paying excessive charges. As legal claims rise, lenders are setting aside billions for potential payouts.
How Much Can You Claim?
Compensation varies based on the loan size and overpaid interest. Average claims range from £3,000 to £10,000 per customer. Some cases even reach £15,000 if the finance agreement was particularly unfair.
Who Is Eligible to Claim?
You may be eligible if you took out a PCP or HP car finance deal before 2021. Mis-selling indicators include hidden commissions, unaffordable payments, and undisclosed fees. Even if you repaid the loan, you could still claim for past overpayments.
Steps to Check If You Have a Claim
- Review your original finance agreement and check for any hidden fees.
- Use a PCP claims checker free tool to assess your case instantly.
- Contact a claims specialist if you find unfair terms in your contract.
- Submit a formal complaint to the lender and escalate to the Financial Ombudsman if ignored.
What to Expect in 2024 and Beyond
The FCA is expected to introduce new rules to prevent future mis-selling. Lenders may face stricter regulations on transparency and fair pricing. Consumer groups predict further compensation payouts exceeding £2 billion in 2024 alone.
Final Thoughts
If you suspect you were mis-sold car finance, act quickly. The sooner you check, the better your chances of reclaiming what you’re owed. With millions already refunded, it’s time to see if you’re entitled to compensation.
