When you purchased the car, if the car salesperson received a fee or commission for bringing the car finance deal to the bank, and the bank has not informed you of this, that is a hidden, secret, or undisclosed commission and therefore mis-sold car finance. The finance provider or bank must inform you of ALL of the fees within the transaction.
The Financial Conduct Authority investigated the motor industry and ruled that the way lenders chose to reward their brokers was harmful to customers who ended up paying more for their car finance. The use of ‘discretionary commission’, whereby the dealer doesn’t have to disclose what kickbacks they receive from the lender, has now been banned. However, it’s worth noting the FCA’s ban doesn’t prohibit commission itself. The difference now is that it must be disclosed, at least making it more transparent. However, the British public have unwittingly been paying secret commission, within their car finance deals, for years.
People who have been mis-sold their car finance agreement can potentially claim thousands in compensation if they believe they have fallen victim to any of the above issues. When you bring forward a claim, you can ensure that the finance agreement is ended, whilst also receiving compensation intended to put you back in the place you were financially had you not been mis-sold the finance agreement. This can equate to thousands of pounds. The Financial Ombudsman Service can also compensate you if the lender has gone out of business and is not able to pay you anything.
This depends on the amount of finance taken, the interest rate applied, the commission model used and the length of the repayment term. However, it’s likely to run into hundreds or thousands of pounds. If you have a copy of your car finance policy to hand then we can review this and make the necessary checks to see if your repayments included secret commission, paid to the broker, for arranging the finance.
If you bought via a car finance agreement in the past six years, then it is possible you may be eligible to claim mis-sold car finance compensation. You may be eligible to claim if:
You may have been a victim of mis-sold car finance if you have received negligent or poor advice in relation to your car finance options or if you were not made aware of any commission being charged within the agreement. Click HERE to check if you are eligible.
If you bought a car on any type of finance, then it’s quite possible you have a claim. The quickest and simplest way to know if you have a mis-sold car finance claim is for us to review your car finance agreement and then check if ‘secret’ commission was paid to the car dealer / finance broker for arranging the credit agreement. However, ask yourself:
Evidence suggests that some customers have been charged thousands more than they should have. While the exact amount of compensation will vary, there are several factors to take into account. These include:
No. We work on a no, win no fee basis. If successful we’ll deduct 25% from any compensation awarded. If for any reason we’re unsuccessful, you won’t pay a penny. Unsure? Why not get in touch for some free, expert, initial legal advice. We’re experienced mis-sold car finance solicitors and can guide you through the claims process.
To get the ball rolling, just complete our short survey. Don’t worry if you don’t have all the information to hand, just fill out as much as you can.
