Latest news with #PersonalContractPurchase
Scotsman
4 days ago
- 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.
The Herald Scotland
21-05-2025
- Automotive
- The Herald Scotland
Martin Lewis issues important update on car finance claim
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 — Martin Lewis (@MartinSLewis) February 8, 2024 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.' What is the car finance mis-selling case? 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.
Wales Online
12-05-2025
- Automotive
- Wales Online
UK car finance scandal: Key dates and guide to claiming £1,000s in overcharges
If you entered into a car finance agreement within a specific timeframe, you might be entitled to a substantial refund. Every day, My Claim Group, an organisation assisting individuals who were unjustly overcharged for car finance over a 14-year span, is being contacted by tens of thousands of people who believe they are owed cahs. Depending on the outcome of a significant court case, tens of billions of pounds could potentially be reimbursed to UK drivers in the forthcoming months. Those who initiated a car finance agreement between 2007 and 2021 may have been wronged without even realising it. As the court case related to this scandal approaches its conclusion, we've compiled a comprehensive guide to help you understand the situation. (Image: Maksym Belchenko via Getty Images) What are we waiting for? On April 1 (no joke), the Supreme Court commenced its hearing to determine whether the Court of Appeal's ruling should stand. The Court of Appeal's decision, which deemed all car finance agreements with hidden commissions as unlawful, took many by surprise. This ruling implies that a larger number of people will be eligible for refunds from lenders. Currently, we're awaiting the Supreme Court's decision on whether to overturn this ruling. Car finance companies Close Brothers and Motonovo appealed to the UK's highest court following the Court of Appeal's verdict in October of the previous year. When can we expect the judgement? Supreme Court rulings typically take anywhere from a few weeks to several months. Given the importance of this case, it will likely be fast-tracked, although the exact timing of the ruling remains uncertain. What would be the implications if the Supreme Court reverses the decision? Although the number of individuals entitled to compensation would decrease, a significant number would still be due money. This is because two types of car finance mis-selling are currently under scrutiny: Discretionary Commission Arrangements (DCAs) and Commission Disclosure complaints. So, what exactly is a DCA? Approximately 40% of car finance agreements from 2007 to 2021 fall under DCAs. Brokers and dealers often inflated the interest customers had to pay on their car finance, typically without informing them, on Personal Contract Purchase (PCP) and Hire Purchase agreements. This was done to boost their commission. And what constitutes a Commission Disclosure complaint? This is the primary focus of the ongoing Supreme Court hearing and stems from the Court of Appeal's ruling that car finance agreements failing to disclose all details of commission were unlawful. This includes the amount brokers would receive as commission, which was seldom revealed. Money Saving Expert estimates that this applies to 99% of car finance cases, including DCA cases. If upheld, this could imply that 99% of all individuals who entered into car finance deals between 2007 and 2021 might be owed money. So, what's the next step? Once the Supreme Court delivers its verdict, the Financial Conduct Authority has pledged to outline the subsequent steps within a matter of weeks. If the Court of Appeal's judgement is reversed, approximately 40% of individuals who entered car finance agreements during the relevant period will be eligible for refunds. The total sum could potentially reach around £10 billion. However, if the ruling is upheld, the number of claimants could significantly increase, and the compensation pot could well surge into tens of billions of pounds. Is it advisable to lodge a complaint at this stage? Absolutely. While the Supreme Court Case's outcome might necessitate lenders to proactively reach out to potential refund recipients, submitting a claim ensures you're less likely to be overlooked for any reason. This is especially crucial if you have relocated since purchasing a vehicle on finance, plan to move soon, or have had any changes to your contact information.
