Why Investigating Car Finance Mis-Selling Could Save You Thousands

Could You Be Owed Thousands? Investigating Mis-Sold Car Finance Could Make a Big Difference

Have you ever financed a car through Personal Contract Purchase (PCP) or Hire Purchase (HP)? You might not realise it, but you could be among the thousands of UK drivers who were mis-sold car finance—often without any warning.

From undisclosed commissions to inflated interest rates, many motorists have unknowingly paid far more than they should have. At Baker Hardman Solicitors, we’re here to help you uncover the truth and potentially recover what’s rightfully yours

Understanding the Complaint Process

To effectively gather necessary evidence, it’s vital to comprehend the complaint process. Initially, you should address your grievance to your service provider, which could be your broker or lender. Inform them of your complaint and await their final response. Often, this step leads to a swift resolution.

If you’re dissatisfied with the initial outcome or if there’s no response within the expected timeframe, you can escalate the matter to the Financial Ombudsman Service (FOS). The FOS will review relevant laws, regulations, and industry standards, along with communications between you and the service provider, to reach a resolution.

What Is Car Finance Mis-Selling?

Car finance mis-selling happens when lenders or car dealerships put profits before fairness and transparency. It’s not just about complicated contracts—it’s about deliberately withholding crucial information that would have affected your decision.

Common Mis-Selling Issues We See:

• Hidden Commissions: Many dealers earned commission from lenders—without ever telling the customer. This practice was declared unlawful following a major Court of Appeal case.
• Discretionary Commission Arrangements (DCAs): Dealers increased the interest rate offered to the customer to maximise their own earnings.
• Lack of Affordability Checks: Some customers were sold finance deals without any proper review of whether they could actually afford them.

Which Agreements Are More At Risk?

Personal Contract Purchase (PCP)

PCP agreements offer lower monthly payments, but they come with layers of complexity that are easy to miss. These may include:

• Hidden fees at the end of the term.
• Inflated interest rates not clearly explained.
• Undisclosed dealer commissions.

Hire Purchase (HP)

While typically more straightforward, HP agreements aren’t immune to mis-selling either. Customers may still face:

• Hidden lender commissions.
• Higher interest rates than expected.
• No matter which type of agreement you have, you could be affected.

Why It Pays to Investigate

The Financial Conduct Authority (FCA) estimates that some drivers overpaid by an average of £1,100 per vehicle due to DCAs and hidden commissions.

By reviewing your finance agreement, you could claim back:

• Undisclosed Commissions
• Excess Interest Charges
• Compensatory Interest – typically an extra 8% per year on the money you overpaid
  A £10,000 vehicle finance deal, for instance, could lead to a refund exceeding £1,000.

Signs You May Have Been Mis-Sold

Ask yourself:

• Were you ever told the dealer was receiving a commission?
• Was your interest rate unusually high (e.g. over 3.9% APR)?
• Were the terms of your agreement unclear or rushed?
• Did the dealer ask about your financial situation at all?

If you’ve answered yes to any of these, there’s a strong chance your agreement may have been mis-sold.

How Baker Hardman Solicitors Can Help

We are currently helping drivers across the UK reclaim money they’re owed from mis-sold car finance agreements. Our expert legal team will handle the process from start to finish, and you won’t pay a penny unless we win your case.

Our Simple 3-Step Process:

1. Initial Consultation: Share the basic details of your finance agreement—no need to track down paperwork at this stage.
2. Case Review: We’ll assess whether your agreement shows signs of mis-selling.
3. Claim Submission: If eligible, we’ll pursue the refund on your behalf, including statutory interest.

What You Could Claim Back

A successful claim may entitle you to:

• Refund of Hidden Commissions
• Reimbursement for Excess Interest
• Compensatory Interest at 8% per annum

If you’ve financed more than one vehicle, each agreement could result in a separate claim—multiplying your potential refund.

Take Action Today – It’s Risk-Free

Don’t let unfair finance deals drain your wallet. Many drivers are sitting on claims worth thousands, unaware of what they’re owed.

At Baker Hardman Solicitors, we offer a no-win, no-fee service to give you peace of mind. Let us investigate your finance agreement and help you recover your money—no hassle, no risk.

Get in touch today to find out if your car finance agreement was mis-sold. It could be one of the most valuable steps you take this year.