Three ways to know if you have been mis-sold car finance

Mis-sold car finance

Many people have no issues with their car finance agreements. However, a lot of people have been mis-sold their contracts. Unless you know what to look out for, it can be easy for people to be completely unaware they have been mis-sold car finance agreements. Most of our customers were unaware that they had been mis-sold until our experts look through their finance agreements. The Financial Conduct Authority found that mis-sold car finance is estimated to be costing consumers £300m annually. Below, we have listed three ways to know if you have been mis-sold motor finance Manchester.

Lack of affordability checks

Affordability assessments or checks are made up of two parts, how much money you have coming in and how much money you have going out. These assessments are incredibly important because they help the lender find out if you can actually afford the car. The first check will be how much money you have coming in. If you’re in full-time employment, that’s usually through pay slips or your P60. The second check consists of looking at your outgoings, they need to check what you have after all your necessary payments have gone out.

If all these checks were done, you should be able to keep up with your repayments. However, if you're struggling to meet your repayments, and you haven't had a significant change in circumstances since you took the loan out, you might have been mis-sold. Even if you manage to keep up with your payments, if you feel like it’s unaffordable to you, you could have been mis-sold.

Shaking hands finance agreement

Lack of clarity on commission and costs

If your car finance agreement and its associated costs and charges weren't fully explained to you, you may have been mis-sold car finance. The dealer/lender is obligated to make the details of the agreement clear to you. Did you know that up to 95% of car finance deals had some form of commission model? Commission in itself isn't a bad thing, but it needs to be explained to the customer. There should be no hidden costs or commissions that were not explained you.

Final payment

Balloon payment is the lump sum payment which is attached to a loan. This payment is usually made towards the end of the loan period. Balloon payments are higher than what you might be paying towards the loan on a monthly basis. Depending on the kind of lease you have, your final payment may be bigger to cover the cost of any damage, excess mileage or other expenses.

If you are unable to afford the balloon payment/final payment or it is more than you expected, you were probably mis-sold. This is usually because the final payment was not explained properly by the lender.

If any of the above points sound familiar, you may have been mis-sold a car finance agreement. However, try not to panic. If this agreement was made in the last 10 years, there is a good chance you’ll be able to claim compensation for the money you have lost during this agreement. You could be owed thousands! PCP Claimsline is a no-win-no-fee guarantee claims company in Manchester that helps people all over the UK. If you’re looking for a way to make your car finance claim as easy and stress-free as possible, then contact a member of the team today.

Tel: 0333 358 2131
Address: Bank Chambers, 93 Lapwing
Lane, Manchester,
United Kingdom,
M20 6UR
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