The Financial Conduct Authority (FCA) found evidence of mis-selling on vehicle financing options, with PCPs presented to customers as follows:

Without the Buyer knowledge they are not advised they may be paying more in interest on a PCP than on a hire purchase (HP) finance agreement, even if the advertised APR is the same.

Buyers are also often told that they will make a ‘profit’ on their car with PCP finance if the car is worth more than the ‘guarantee minimum future value’ at the end of the contract.  This is incorrect and misleading.

If you have been mis-sold motor car finance and received poor advice on your financing options or if you were not made aware of any commissions being charged within your agreement, you are eligible to make a claim.