How To Check If You Have Been Mis-sold Car Finance
The law states that the burden of proof is on the lender and/or the car dealership to show that they acted legally in all aspects of the process.
Your car finance agreement may have been mis-sold if:
- The car salesperson did not inform you they would receive a commission from the lender for setting up the financial agreement.
- The car salesperson did not inform you of all the finance options available, including explaining the differences and responsibilities of each type of product.
- The car salesperson did not inform you, with complete transparency, of the interest rates charged for all finance options and how they may differ.
- The car salesperson did not offer the best interest rate available to you.
- The car salesperson did not adequately explain the details of the financial contract they sold to you, including the Terms and Conditions.
- The car salesperson did not conduct adequate affordability checks or talked you into an unaffordable finance agreement.
How to claim
Pacific Legal make it so simple!
Here are the 4 steps to your compensation.
1. Contact our expert team
2. We’ll send you our paperwork
3. Your dedicated claims expert will keep you informed and up-to-date
4. Payment made directly in to your bank account
Frequently Asked Questions
A Personal Contract Purchase (PCP) is a type of car finance agreement. You make monthly payments over a fixed term, with the option to either:
- Return the car.
- Pay a lump sum (balloon payment) to keep it.
- Trade it in for a new vehicle.
A PCP agreement may be mis-sold if:
- The dealer didn’t fully explain the terms and conditions, including the balloon payment.
- You weren’t informed about the total cost, including interest and fees.
- The affordability assessment was inaccurate or inadequate.
- You were not told about cheaper or more suitable finance options.
- The impact of mileage limits or early termination costs wasn’t made clear.
You may have been mis-sold if:
- You felt pressured into signing the agreement.
- The full cost of the agreement, including the balloon payment, was not explained.
- The dealer failed to explain how excess mileage or damage could lead to additional charges.
- You were not informed that the car could depreciate in value faster than expected.
- The affordability checks were superficial, and you now struggle to meet the repayments.
If your claim is successful, you could be entitled to:
- A refund of any overpaid interest or charges.
- Compensation for financial losses.
- Cancellation of unfair terms within the agreement.
Contact us to assess your case. If we identify signs of mis-selling, we’ll guide you through the claims process and handle the submission on your behalf.
No, submitting a claim will not negatively affect your credit score.
Yes, you can still claim even if you’ve paid off your PCP agreement, as long as you believe the agreement was mis-sold. You may be entitled to compensation for any financial losses or unfair charges.
You can still make a claim if you’ve returned the car or traded it in as part of a new agreement. The focus of the claim will be on how the original agreement was sold to you and whether you suffered financial loss.
The length of the claims process can vary depending on the complexity of the case and the responsiveness of the finance company. On average, claims can take a few months to resolve. We’ll keep you updated throughout the process.
We operate on a no-win, no-fee basis, meaning you won’t pay anything upfront. If your claim is successful, we’ll take a pre-agreed percentage of the compensation as our fee. Full details will be provided before you proceed.
If your claim is unsuccessful, you won’t need to pay us anything under our no-win, no-fee arrangement. We’ll also provide advice on any further steps you could take if applicable.
Yes, you may be able to claim if you used a different finance product, such as Hire Purchase (HP) or a Personal Loan, and believe it was mis-sold. Contact us to discuss your specific circumstances.
If you’re unsure, it’s best to contact us for a free, no-obligation assessment. We’ll review your agreement and provide guidance on whether you have grounds for a claim.
Get in touch
If you think you may qualify for a claim, we’d love to help you get back what you may have lost. Our expert team are ready to hear from you!
01412 806 227
enquiries@pacificlegal.co.uk
