Latest news with #PersonalContractPurchase
Scottish Sun
5 days ago
- Automotive
- Scottish Sun
Mis-sold car finance average payout: how much could you get?
*If you click on a link in this story, we will earn affiliate revenue. MOTOR CLAIM Mis-sold car finance average payout: how much could you get? Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) LATER this month the UK supreme court is expected to rule on whether car finance dealers unlawfully charged millions of drivers secret commission. This means if you took out a car finance arrangement before 2021 you could be in line for compensation. Sign up for Scottish Sun newsletter Sign up In the build up to the ruling, the Financial Conduct Authority (FCA), the industry watchdog, is reviewing how it would implement a large-scale redress scheme. Lloyds Bank, meanwhile, have set aside £1.2 billion in potential compensation costs – with other lenders following suit. Check if you could claim for mis-sold car finance below What are mis-sold car finance claims? Most cars in the UK are bought on a finance agreement, like a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement. Before being outlawed in 2021, these agreements could be sold with 'discretionary commission'. This meant your finance provider was allowed to increase your interest rate and pocket the difference as commission. Drivers didn't know that they could have paid for a cheaper loan and that part of their monthly repayments were funding this commission structure. What is the average payout for mis-sold car finance? Until the matter is resolved in court, the exact compensation drivers can expect remains unclear. However, we do know the average driver could be due thousands. My Claim Group, a claims management company, estimates that the average driver could receive up to £4,000**. Separate information from the FCA also found that a £10,000 finance agreement on PCP or HP could have cost the average consumer £1,100 in additional interest charges. This information will likely play a role in calculating the compensation you will receive, alongside a few other factors. Check if you could claim for mis-sold car finance below What factors could affect my car finance mis-selling payout? A few individual factors will likely influence your car finance payout. This includes: The interest rate you received The discretionary interest charged might differ depending on your lender. A higher rate means you may have paid more in commission to your dealer, and this could mean you're due an increased payout. The length of the agreement When purchasing on finance, the length of the repayment period affects borrowing costs. Longer repayment periods typically mean lower monthly payments but higher overall borrowing costs. Shorter repayment periods, on the other hand, result in higher monthly payments but lower total costs. So, repayment plans can influence the total interest paid on your finance. A longer repayment period at a higher rate could mean you paid more in unfair commission. The size of the loan In addition to the length of the agreement, the size of the loan also plays a role in determining the total interest paid. A larger loan charged at a higher rate means you could have paid more in discretionary commission. Can I make multiple claims to increase my payout? Discretionary commission arrangements were commonly used before their ban in 2021. During this time, drivers may have entered into multiple finance agreements, each with its own hidden commission. This means you might be eligible to make multiple claims and receive multiple payouts. Check if you could claim for mis-sold car finance below How to apply for compensation You do not need to use a claims management company to make a complaint, you can do it directly via your lender and eventually the Financial Ombudsmen Service. My Claim Group work with a panel of solicitors and they work on a no win no fee***. This does mean if it's successful then they will take a cut of your total payout but you don't have to deal with the administrative hassle of claiming. The Law Firms they work with take between 18 % and 36% inc VAT of successful claims. The total amount you would be due to pay depends on the level of redress you have received. Check if you could claim for mis-sold car finance below My Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. **See link for the FCA reference, solicitor fee tables & average valuations: *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: Solicitor fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service.
The Irish Sun
5 days ago
- Automotive
- The Irish Sun
Mis-sold car finance average payout: how much could you get?
LATER this month the UK supreme court is expected to rule on whether car finance dealers unlawfully charged millions of drivers secret commission. This means if you took out a car finance arrangement before 2021 you could be in line for compensation. In the build up to the ruling, the Financial Conduct Authority (FCA), the industry watchdog, is reviewing how it would implement a large-scale redress scheme. Lloyds Bank, meanwhile, have set aside £1.2 billion in potential compensation costs – with other lenders following suit. Check if you could claim for mis-sold car finance below What are mis-sold car finance claims? Most cars in the UK are bought on a finance agreement, like a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement. Before being outlawed in 2021, these agreements could be sold Drivers didn't know that they could have paid for a cheaper loan and that part of their monthly repayments were funding this commission structure. What is the average payout for mis-sold car finance? Until the matter is resolved in court, the exact compensation drivers can expect remains unclear. However, we do know the average driver could be due thousands. Separate information from the FCA also found that a £10,000 finance agreement on PCP or HP could have cost the average consumer £1,100 in additional interest charges. This information will likely play a role in calculating the compensation you will receive, alongside a few other factors. Check if you could claim for mis-sold car finance below What factors could affect my car finance mis-selling payout? A few individual factors will likely influence your car finance payout. This includes: The interest rate you received The discretionary interest charged might differ depending on your lender. A higher rate means you may have paid more in commission to your dealer, and this could mean you're due an increased payout. The length of the agreement When purchasing on finance, the length of the repayment period affects borrowing costs. Longer repayment periods typically mean lower monthly payments but higher overall borrowing costs. Shorter repayment periods, on the other hand, result in higher monthly payments but lower total costs. So, repayment plans can influence the total interest paid on your finance. A longer repayment period at a higher rate could mean you paid more in unfair commission. The size of the loan In addition to the length of the agreement, the size of the loan also plays a role in determining the total interest paid. A larger loan charged at a higher rate means you could have paid more in discretionary commission. Can I make multiple claims to increase my payout? Discretionary commission arrangements were commonly used before their ban in 2021. During this time, drivers may have entered into multiple finance agreements, each with its own hidden commission. This means you might be eligible to make multiple claims and receive multiple payouts. Check if you could claim for mis-sold car finance below How to apply for compensation You do not need to use a claims management company to make a complaint, you can do it directly via your lender and eventually the Financial Ombudsmen Service. The Law Firms they work with take between 18 % and 36% inc VAT of successful claims. The total amount you would be due to pay depends on the level of redress you have received. Check if you could claim for mis-sold car finance below My Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. **See link for the FCA reference, solicitor fee tables & average valuations: *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: Solicitor fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service.
Scotsman
28-05-2025
- Automotive
- Scotsman
‘Simple PCP claims' launches to help UK drivers seek refunds over mis-sold car finance
A new consumer-focused claims management website, Simple PCP Claims, has officially launched to support UK drivers who may have been affected by the growing PCP (Personal Contract Purchase) finance mis-selling scandal. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The platform is designed to help users check if they're eligible for compensation, gather supporting documents, and submit claims – all in a clear, guided format. The business, Simple PCP Claims, is an independent claims management organisation founded in 2025 and led by Edinburgh-based entrepreneur Thomas Riley, a graduate of Heriot-Watt University. Simple PCP Claims was developed in direct response to ongoing investigations by the Financial Conduct Authority (FCA) into widespread concerns that major car finance providers may have failed to disclose commission structures that incentivised higher interest rates. The platform aims to improve access to justice for drivers who unknowingly overpaid as a result. Advertisement Hide Ad Advertisement Hide Ad 'Many people simply don't realise they've been affected,' said Thomas Riley, founder of Simple PCP Claims. 'Our mission is to demystify the claims process and provide a simple, secure way for users to explore their rights and claim back what they may be owed.' Thomas Riley business owner. The website ( includes: A fast and easy claims checker Step-by-step guidance on gathering evidence Educational content to explain what PCP mis-selling is Secure online submission of claim information
Daily Mirror
22-05-2025
- Automotive
- Daily Mirror
Brits urged to check car finance details as they could be owed £4,000
Millions of UK drivers could be owed thousands of pounds - and you could be one of them. A new car finance scandal has come to light, which saw lenders paying undisclosed "secret" commissions to car dealerships. This meant that car dealers could determine the interest rates on finance deals; the higher the interest, the larger commission they earned. That left Brits signing up for finance agreements with higher interest rates than necessary - and now, those affected could be due payouts of up to £4,000**. Luckily, My Claim Group (MCG) is one of the groups on hand to help those impacted or who think they may have been affected get their money back - you can check if you're owed money here. The full scale of the issue has only recently emerged, with a major UK Supreme Court judgement due later this year. According to My Claim Group, 40% of HP and PCP finance deals between 2007 and 2021 may have included secret commissions, leading consumers to unknowingly enter into finance agreements with inflated interest rates. Across 1.2million claims so far, MCG has helped vehicle owners to submit claims that could be worth £4,000 on average. If you bought a car, van or motorbike via Personal Contract Purchase (PCP) or Hire Purchase (HP) before 28 January 2021, you could be due thousands of pounds. The car finance scandal kicked off in January 2021, when the Financial Conduct Authority (FCA) stepped in and prohibited discretionary commission models to protect consumers. However, further investigations found that the problem has been going on as early as 2007, so there's been a further examination of past lending activities. By October 2024, the Court of Appeal declared that the non-disclosure of commissions on car loans was illegal. The financial fallout for lenders has been colossal, prompting the government to step in, with UK Chancellor Rachel Reeves voicing concerns about the wider economic implications and the possible effect on consumers' access to car loans. However, claims management firms like My Claim Group are urging consumers to lodge complaints. The Supreme Court is currently examining a crucial appeal by car loan providers, following earlier judgements that sided with consumers. The FCA has temporarily halted the complaints process until the court's verdict, expected later this year. The result of this appeal will play a significant role in establishing the liability of lenders. If you suspect you may have been affected, head over to the My Claim Group website for more information and start the straightforward process to find out if you're due a refund. My Claim Group is a trading name of the Claims Protection Agency Ltd, regulated and authorised by the Financial Conduct Authority (FCA No. 836470). Our Free* check assesses your claim. *If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: Solicitors fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company, you can claim for free directly with your lender or the Financial Ombudsman Service. **See link for the FCA reference, solicitor fee tables & average valuations:
South Wales Guardian
21-05-2025
- Automotive
- South Wales Guardian
Martin Lewis issues important update on car finance claim
Now, finance guru Martin Lewis has issued an important update when it comes to car finance scandal claims. The Money Saving Expert said he expected an update in July after the UK's Supreme Court heard a case at the start of April, which many hope the outcome will determine whether they receive compensation. Financial providers have been accused of using discretionary commission arrangements (DCAs) to increase interest rates on motor finance. Did you get a car, van, motorbike on finance pre 28 Jan 21? Millions are owed £1,000s due to a NEW hidden commission scandal. Watch full show at Free complaint tool at Around two-and-a-half million people have now put DCA claims in. Addressing the scandal on his Martin Lewis Money Show on Tuesday (20 May), Mr Lewis said: 'The people in the know are telling me the decision will be in July.' The majority of cars sold in the UK are bought with finance agreements. These loans enable drivers to pay a deposit and then spread the cost of a new vehicle over several years. It was discovered that car dealers, acting as loan brokers, earned a commission based on the interest rate charged to the buyer for Personal Contract Purchase (PCP) and Hire Purchase agreements. These cover about 40% of all car finance agreements. Recommended reading: The higher the interest rate charged to the consumer, the more commission the dealer made. Car dealers were incentivised to make loan agreements with higher interest rates. The practice, known as discretionary commission arrangements (DCAs), has left many drivers paying hundreds and even thousands of pounds more for their vehicles.
