Claims for Mis-Sold Car Finance Loans – Your Guide

Mercedes Benz car dealership financing options

Have you recently taken out a car finance loan? If so, there is a chance you could have been mis-sold. It is estimated that hundreds of thousands of motorists might have been mis-sold finance packages, costing consumers in the UK up to £300m a year! In this blog, we will explain what mis sold car finance Manchester is and how you can claim back the money you deserve.

What is car finance?

According to the AA, a car finance agreement allows you to pay for a car over a period of time, with interest payable on the loan balance. There are four different types of finance options. Each of them has it’s advantages and disadvantages and will be suited to people with different circumstances.

  1. Personal loan - Borrowing money from a bank or building society to fund the purchase.
  2. Hire purchase (HP) - This is where you pay a deposit and fixed monthly payments. You do not own the car until the final payment is made.
  3. Leasing - You are renting the car and will never own it.
  4. Personal contract purchase (PCP) - Pay a deposit and fixed monthly repayments. You have three options at the end of your contract - to keep the car, exchange the car or return the car.

Am I a victim of mis-sold car finance?

It is estimated that around 1 in 5 people have been mis-sold a finance agreement. Did you receive poor advice or were not made aware of the various commissions being charged within your agreement? If this sounds familiar, you may be a victim of mis-sold car finance. Being mis-sold car finance usually leads to you ending up with a deal and car that doesn’t suit your or your financial needs.

Lenders must inform you of what is involved in the car finance deal. This prevents people from taking on car finance deals that aren’t suited to them and their finances. There is usually nothing wrong with the PCP deal, it all comes down to how clearly the dealer lays out the terms. PCP deals can be complicated and involve a lot of small print.

High view of cars at a car dealership shop

How much could I claim?

The average amount of compensation for a mis-sold car finance claim is around £1,100. However, sometimes these claims can be considerably higher than this figure.

What makes a difference to the amount you can claim?

  • The amount of the loan (he higher the amount, the more you’ll be able to claim).
  • The amount of time that has passed since you first signed up for the loan (the longer the loan term, the more you can claim).
  • The rate the lender quoted you.

How to make a claim?

You can claim for any loan you were sold to purchase a vehicle in the last ten years, so you can upload as many agreements as you like. Complete a short form providing as many details about the loan agreement as possible. The more information you can provide us, the quicker we can process your claim. We will then get started on claiming back the money you’re owed. Our services are offered on a “no-win no-fee” basis, meaning there is no financial risk in claiming compensation from the lender who sold it to you. Contact us today:

PCP Claimsline – Claims Management Company Manchester

Tel: 0333 358 2131
Address: Bank Chambers, 93 Lapwing
Lane, Manchester,
United Kingdom,
M20 6UR
woman making a claim on laptop because she was mis sold a car finance loan