If you took out a Personal Contract Purchase (PCP) or Hire Purchase (HP) finance agreement, you may have been mis-sold. Many car buyers don’t realise they could be owed compensation. Let’s debunk the biggest myths and get to the facts.
Myth 1: If I Signed the Contract, I Can’t Claim
Many people believe signing an agreement means they can’t challenge it later. That’s completely false because lenders must provide fair and transparent terms. If they failed to explain the total cost, commission, or affordability, you could have a strong case.
Lenders often hid commission fees without informing customers. This could have inflated the interest rates unfairly, making you pay more than necessary. You can use a free mis-sold car finance payout calculator to check if you’re eligible for a refund.
Myth 2: Only Certain Car Brands Qualify for Compensation
The type of car doesn’t determine whether you were mis-sold finance. What matters is how the deal was structured and whether key details were hidden. If a lender failed to disclose commission or affordability checks, you could have a valid claim.
This issue affects deals across various brands, from Ford and BMW to Mercedes and Volkswagen. If you were pressured into taking an expensive deal or weren’t given full disclosure, you have the right to complain. PCP Claims can help you check your case for free.
Myth 3: The Claim Process Is Too Complicated and Time-Consuming
Some believe claiming is a nightmare filled with endless paperwork. In reality, the process is far easier than you think. Most claims require basic details like finance agreements, payments made, and any written communication with the lender.
A claims specialist can handle the legwork and negotiate with the lender on your behalf. Many cases settle without needing legal action, making it simple to get back what’s rightfully yours. It’s always worth checking if you’re owed thousands in overpaid interest.
Myth 4: You Can Only Claim Within a Certain Timeframe
There’s a misconception that mis-sold PCP and HP claims expire quickly. While time limits do apply, most people can still make a claim within six years of signing or three years from when they realised the issue.
Even if your finance deal ended years ago, you may still be eligible. Financial regulators expect lenders to act fairly, meaning they can’t avoid accountability due to time restrictions. If unsure, use a free eligibility checker to see if your case qualifies.
Myth 5: Making a Claim Affects My Credit Score
Claiming for a mis-sold finance agreement does not harm your credit rating. You’re simply asking for compensation for unfair costs. Since you’re not taking out new credit or missing payments, it won’t negatively impact your credit file or ability to borrow.
In some cases, getting a refund could even help by reducing financial strain and improving your financial standing. There’s no reason to avoid making a claim, especially if you were overcharged due to hidden commissions or unfair lending practices.
Final Thoughts
Mis-sold PCP and HP finance agreements have cost UK consumers millions in unnecessary payments. Many drivers don’t realise they were misled and assume nothing can be done. If your finance provider failed to disclose commissions, misrepresented costs, or ignored affordability checks, you may be entitled to a refund.
A quick check with PCP Claims can determine if you have a case. The process is simple, and with free claim assessments, you have nothing to lose. If you’ve ever doubted your car finance agreement, now’s the time to take action!
