How to Check if Your PCP was Mis-sold
Signs that your car finance may have been affected by Discretionary Commission Arrangements
If you took out PCP (Personal Contract Purchase) or HP (Hire Purchase) car finance between April 2007 and January 2021, your agreement may have been affected by Discretionary Commission Arrangements (DCAs). Here's how to assess whether you may have a claim.
Key Questions to Consider
1When Did You Take Out the Finance?
The FCA's investigation focuses on agreements entered into between April 2007 and January 2021 (when DCAs were banned). If your finance agreement falls within this period, it may be worth investigating further.
2Were You Told About Commission?
One of the most significant indicators of potential mis-selling is whether you were told that the dealer received commission from the lender. Consider:
- Did the dealer mention commission at all?
- Were you told how much commission the dealer would receive?
- Were you informed that the dealer could influence your interest rate?
If you were not told about commission arrangements, this could indicate your finance was mis-sold.
3Did You Feel You Had a Choice?
You should have been given the opportunity to:
- Compare finance options from different providers
- Consider whether you needed finance at all
- Take time to think about the decision
- Understand the full cost of the finance
4Was the Interest Rate Explained?
The APR (Annual Percentage Rate) should have been clearly explained. Consider:
- Were you told the interest rate before signing?
- Did you understand how much interest you would pay in total?
- Were you given the opportunity to negotiate the rate?
Documents to Check
If you still have your finance documents, look for information about:
The APR (Annual Percentage Rate) on your agreement
Any mention of commission or brokerage fees
The total amount payable over the agreement
The name of the lender who provided the finance
Don't Have Your Documents?
If you no longer have your finance paperwork, don't worry. Blue Lion Law can help obtain the necessary information from the relevant parties as part of the claims process.
Types of Finance That May Be Affected
DCAs were used across various types of motor finance, including:
PCP (Personal Contract Purchase)
The most common form of car finance
HP (Hire Purchase)
Pay off the full value over the term
Conditional Sale Agreements
Similar to HP with different terms
Personal Loans
Some loans used to purchase vehicles
What Information Do You Need?
To assess a potential claim, it's helpful (but not essential) to know:
When you took out the finance (approximate date)
The name of the dealership
The type of vehicle purchased
The type of finance (PCP, HP, etc.)
The lender (if known)
Even if you don't have all this information, it may still be possible to investigate your claim. We can work with what you remember to piece together the details.
What Happens Next?
If you believe your PCP or HP finance may have been affected by DCAs:
Initial Assessment
Blue Lion Law will review your circumstances to determine if you may have a claim
Gathering Information
We can request relevant documents and information from the lender and dealer
Claim Submission
If you have a valid claim, we will handle the process on your behalf
Resolution
We will work to secure compensation if you are entitled to it
Important Note
Not everyone who took out car finance during this period will have a valid claim. Eligibility depends on individual circumstances, including whether DCAs were actually used in your specific agreement. Blue Lion Law assesses each case on its merits and will provide honest advice about your prospects.
Ready to Check Your Claim?
It takes a few minutes to start your claim.