Before understanding if you’re eligible for mis-sold PCP compensation, it’s important to understand the background to this latest scandal.
Up until 2021, when the Financial Conduct Authority (FCA)banned the practice, car dealerships around the country were able to use what is known as a ‘Discretionary Commission Arrangement’ (DCA) when they were selling finance to their customers.
Essentially, this meant that the dealers could adjust the loan’s interest rates without the customer knowing, so that they could earn more commission on the financing of the car. Ultimately, the higher the interest rate they set, the more the dealer received in commission.
And it’s not just DCAs which are under the spotlight. Fixed commissions or Non-Discretionary Arrangements which see the dealer receive a fixed sum from the finance provider upon signing up a customer, are also under scrutiny. This is because last year the Court of Appeal stated that customers purchasing a car using finance were not informed that the dealer would receive any kind of commission, whether it was fixed or discretionary.
I bought a car – how do I know if I’m eligible?
If you bought a car on finance, chances are you may be eligible for mis-sold finance compensation. The following needs to apply:
· You bought your vehicle on finance, between April2007 and 2021.
· The vehicle was either a car, a motorbike or a campervan.
· You bought the vehicle for personal use – it wasn’t purchased through your business
If you’re still not sure whether you’re eligible to claim for compensation, you can use our free registration checker and we’ll check for you! Head to https://claims.johnsonlawgroup.co.uk/finance.php.