Have you been Mis-Sold Car Finance?

If you have taken out a car finance deal within the last six years, chances are that you could be the victim of mis-sold car finance. As further revelations come to light, evidence of a car finance mis-selling scandal dating back to 2014 is becoming more apparent.

Can I claim for mis-sold car finance?

The answer is yes you can, if you have unknowingly been mis-sold car finance, Paul Crowley & Co solicitors are here to help you claim back the money that is rightfully yours.

But first, let’s explain how the mis-selling of car finance happens so you can identify if you have been mis-sold.

What are the mis-sold car finance options?

There are four popular types of car finance options any of which could have been used to mis-sell a car by a dealer or credit broker to finance the purchase of a car.

Hire Purchase (HP)

Hire Purchase is where the customer puts down an initial deposit on the vehicle, then repays the remaining amount including interest, via monthly payments over a set amount of time.

Personal Contract Hire (PCH)

Personal Contract Hire is a car leasing finance option, available to sole traders, partnerships and limited companies.

Personal Car Loan

A personal car loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car.

Personal Contract Purchase (PCP)

PCPs have proved very popular with car finance credit brokers and car buyers in recent years. A PCP is where the car dealership estimates what the value of the car will be worth at the end of the contract, which is usually three or four years.

You can find further information below, on how you might have been deliberately misled by a credit brokers or car dealers and mis-sold PCP car finance.

Are you one of the thousands of motorists who has bought a car with a personal contract plan from a dealer?

In a bid to help the motorist finance their choice of car at a cheaper rate, car dealerships offered the motorist a Personal Contract Plan (PCP).

According to the National Association of Commercial Finance Brokers (NACFB), many buyers who purchased a car from a dealer using a PCP finance deal could have had the wool pulled over their eyes by either the salesperson and/or the credit broker.

Although Personal Contract Plans have proved popular, the complex nature of PCPs is being exploited by the car dealers and credit brokers with many drivers convinced they are getting a better deal, or that PCP is a more economical alternative to traditional hire purchase (HP) agreements.

PCP is an interest-only loan that runs for a period of two to four years. The expected depreciation of the car during this time period determines the loan amount.

Upon completion of the loan period, the motorist can choose to hand the car back to the dealer or purchase it outright by making a “balloon payment” which is the expected worth of the vehicle at the end of the agreement.

At the point of sale the final balloon payment is presented to the motorist as an attractive proposition, referring to the difference between the car’s expected value at the end of the loan period and the balloon payment as ‘equity’ or ‘profit’.

Motorists are led into believing they can use this profit as a deposit to part ex on a new vehicle or purchase the car at a cost lower than the market rate value.

But lenders deliberately failed to tell the motorist that the interest is not paid down for as long as the deal lasts and as a result, the interest charges rise quickly leaving the motorist with little or no equity and buying the car outright an expensive option.

Did the lender carry out the necessary financial background checks?

The lender has an obligation to make the necessary financial background checks on the purchaser to ensure the terms of the PCP are right for them and that they can afford the loan.

This includes checking your expenses, income, and financial records. If this does not happen, then you have been mis-sold your car finance and Paul Crowley & Co are here to help you to recover any money you may have lost.

Free Expert legal advice…

It is important when making a claim for mis-sold car finance that you receive the correct legal advice, to discuss a NO WIN NO FEE claim call our expert claims lawyers on 01512646588.

How do I know if I have been mis-sold car finance?

The Financial Conduct Authority (FCA) states below that a credit broker must disclose to a customer before a credit agreement is entered into, the existence of any commission, fee or other remuneration payable to the credit broker by the lender or owner or a third party in relation to a credit agreement.

Commissions: credit brokers

CONC 4.5.3 R 01/04/2014 RP

credit broker must disclose to a customer in good time before a credit agreement or a consumer hire agreement is entered into, the existence of any commission or fee or other remuneration payable to the credit broker by the lender or owner or a third party in relation to a credit agreement or a consumer hire agreement, where knowledge of the existence or amount of the commission could actually or potentially:

(1) affect the impartiality of the credit broker in recommending a particular product; or

(2) have a material impact on the customer’s transactional decision.
[Note: paragraph 3.7i (box) and 3.7j of CBG and 5.5 (box) of ILG]

CONC 4.5.4 R 01/04/2014 RP

At the request of the customer, a credit broker must disclose to the customer, in good time before a regulated credit agreement or a regulated consumer hire agreement is entered into, the amount (or if the precise amount is not known, the likely amount) of any commission or fee or other remuneration payable to the credit broker by the lender or owner or a third party.​

What if the credit broker fails to disclose any fee or commission?

If the credit broker, prior to the car buyer signing the car finance agreement fails to disclose, any commission, fee or other remuneration, which could adversely affect the car buyer’s purchasing decision, then on the grounds of non-disclosure, an act of car finance mis-selling has been committed and Paul Crowley & Co can help you to file a claim for compensation.

No win no fee…

It will only take a few minutes to decide if you have a valid claim for mis-sold car finance, to discuss a free NO WIN NO FEE claim call our expert claims lawyers on 01512646588.

Areas of mis-sold car finance that you can claim back against

To help identify if your car finance was mis-sold, the team of experienced claims handlers at Paul Crowley & Co have provided the following list.

Situations that are typically associated with car finance mis-selling that we can claim back against:

  • Finding it difficult to afford your monthly payments
  • Your car dealership did not properly outline the charges on interest
  • You were not given a full range of options to choose from despite suitability and affordability
  • You felt pressured to buy due to the hard-sell tactics of the salesman
  • You were not informed of excess mileage charges
  • Your car dealership failed to tell you about who the actual owner of the vehicle is
  • Your car dealer did not adequately explain the financial agreement to you
  • You were given misleading advice about the terms of your payment or finance agreement
  • Your final payment is much more than you expect
  • You were given a vague and unclear explanation about who would be financially responsible for vehicle repairs

If any of the above situations occurred when you purchased your car on finance, then Paul Crowley & Co can help you to file for compensation.

“When we are entering into a financial agreement we quite rightly expect those providing or introducing the finance to be completely honourable and trustworthy with their intentions. Unfortunately this is not always the case, we know when buying a car which is one of our biggest purchases, consumers are being misled, incurring additional costs and placing themselves in financial difficulties. Our mis-sold car finance team are successfully helping consumers, who have been mis-sold car finance to win back these funds, which can turn into thousands of pounds”.

Paul Crowley,
Managing Director

100% NO WIN, NO FEE, no risk compensation

At Paul Crowley & Co we offer a NO WIN NO FEE compensation claim against mis-sold car finance. 

Our claims experts are on your side, you will be speaking directly to a mis-sold car finance specialist, who will discuss your NO WIN NO FEE compensation claim and answer any questions you may have.

With nothing to lose and everything to gain, why wait our claims experts are waiting to take your call on 0333 200 0685

Car buyers should be concerned

The Bank of England and the Financial Conduct Authority (FCA) have vocalised their concerns at the record breaking amount of money used to finance car sales in the last year.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA said: ‘We have seen evidence that customers are losing out due to the way in which some lenders are rewarding those who sell motor finance.’

Guidance on commission disclosure was “quite grey” and was not specific to the motor retail sector. The FCA have found that the widespread use of this type of commission creates an incentive for brokers to act against customers’ interests.

The Financial Conduct Authority published a report in 2019 called “our work on motor finance-final findings” which identifies Motor Finance Mis-selling breaches.

Motor finance brokers fell short of the required regulatory standards

The FCA’s conclusions have been clear, dealers and other motor finance brokers fell short of the required regulatory standards.

The FCA is going to investigate what it calls “a lack of transparency, potential conflicts of interest and irresponsible lending” in the motor finance industry as they’ve quoted “Finance providers and the banks need to be accountable here. If they follow The Consumer Credit sourcebook CONC, then car dealers, almost by default will all become compliant”.

How Paul Crowley & Co Solicitors can help you?

Paul Crowley & Co are experts in claiming compensation. We have successfully claimed back thousands of pounds in mis-sold car finance for our clients. With no upfront costs we offer No Win, No Fee, No Risk compensation claims, with nothing to lose… and everything to gain!

If you feel that you’ve been misled about a key feature of the car or the finance agreement, we will look at:

  • What the salesperson/dealer/broker says would happen and what actually happened
  • Any information you were given about the car before purchasing, this can include, brochures, advertisements, manuals, invoices, the car services and MOT inspection history
  • Relevant documents such as pre contract information and finance agreements

Do not worry if you do not have any of this information, our experts claims handlers can still look at your complaint. If you think something was said that wasn’t correct, or that you were misled into taking out the finance agreement, we will look at the impact that this has had on you and what you might have done differently had you been fully informed at the outset.


To find out more about how we can assist you, call our mis-sold car finance legal team on 0333 200 0685 or email us and claim the compensation you deserve.

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