At the end of January 2021, the Financial Conduct Authority (FCA) banned the practice of ‘discretionary commission arrangements,’ which allowed brokers to adjust interest rates for customers buying cars on finance. The higher the interest rate, the more commission the broker received. At Finance Detective, we are well aware that many consumers have complained about excessive charges before this ban. These complaints have led to the FCA opening an official investigation into car finance claims.
The FCA’s major financial mis-selling investigation aims to assess the extent of the problem and we are anticipating that they will order compensation for affected motorists. While consumers have been able to complain, many firms have falsely rejected complaints, denying any wrongdoing or harm to customers. The investigation will impact consumers who bought a car on finance before January 28, 2021, if their broker had a discretionary commission arrangement. It will not affect those who bought a car on finance after this date or had a hire agreement.
According to Money Saving Expert’s Martin Lewis, this significant step could lead to millions of consumers receiving thousands in compensation.
If you bought a car on PCP finance before 2021, you might be eligible to claim compensation for financial mis-selling. The scandal indicates that you may have paid a higher interest rate than necessary due to hidden commission fees.
While the FCA is investigating, they have paused the 8-week deadline for firms to respond to complaints. Therefore, lenders don’t need to respond to your complaint until at least September 25, 2024. However, Martin Lewis encourages consumers to submit their complaints now to avoid missing out and ensure they are in the queue when action is taken.
While there are no guarantees that mis-selling will be proven and action will be taken, the FCA’s full review of how complaints have been handled is a significant sign they believe complaints have been wrongly rejected and may implement a compensation scheme. The amount of compensation could be in the thousands, but it remains uncertain.
Finance Detective is here to offer advice and help you get compensation for your car finance claims. We understand your rights and know the importance of transparency and integrity when buying a financial product. You may be able to claim with us for various reasons, including if the lender didn’t disclose sales commissions, you paid a high-interest rate, and you bought the car in the last 10 years.
Our team comprises dedicated claims experts who have worked on hundreds of successful financial mis-selling claims. We will ensure your claim is accurate and that adequate supporting documents are submitted to maximize your compensation. We make the process quick and easy, handling the hard work and time-consuming tasks so you can relax while we secure your compensation. We work on a no-win, no-fee basis, so you only pay our fees if the claim is successful.
The journey starts with our free online checker. In two minutes or less, you can check if you might be eligible for a PCP claim. The checker will ask a few simple questions, such as your vehicle registration and how you financed the agreement. Our system will tell you within seconds whether you might be eligible. If we think you have a case, you can instruct us to proceed all through our online claim portal, and we will be in touch to help you make a successful claim.
Check now to see if you’re eligible for compensation.