How do I know if I will be able to bring a claim for being mis-sold a PCP?
There are a number of challenges you can make to the legality of a PCP, but your best bet will be to show that the relationship between you and the lender was unfair as defined by s140A of the Consumer Credit Act 1974. And that relationship is likely to be unfair if you were not told how much commission the car salesman (the broker) was paid by the lender to sell you a PCP.
Can I still bring a claim if I don’t have the PCP sales agreement?
Lenders must keep records of all their customers’ transactions and dealings for at least 6 years. Under UK data law you are entitled a copy of the sales agreement and supporting documentation and we can make a data subject access request (DSAR) to obtain this documentation for you.
How long does it take for a car finance claim to be paid out?
This will vary from case to case and will depend on factors such as the availability of the sales documentation and the stance taken by the lender. If everything goes in your favour you could be paid out in 6-12 months.
How much could I receive?
This will depend on the amount you borrowed under your PCP and the rate of interest you were charged. The FCA estimate that on a typical PCP where the loan is for £10,000, it is likely that the customer will pay more than £1,100 over the odds in interest – and this amount should be repaid in compensation to the customer if the PCP is judged to be unfair. Needless to say levels of compensation will be far higher when PCPs are used for the purchase of more expensive vehicles.
How many PCP compensation claims can I make?
You may be able to claim compensation for as many PCPs as you have entered into in the last 10 years.
What happens of my claim is rejected?
If your claim is rejected you can appeal to the Financial Ombudsman Service. Many claims that are rejected initially go on to be overturned by the FOS, but this will lead to a delay in your claim.
Will I have to pay my solicitor any upfront fees for making my PCP claim?
No. Most solicitors will act for you under a “no-win, no-fee” agreement. Under this type of agreement you will not pay anything if you do not win your case. If you do win you case you will pay your solicitor a success fee, which typically will be capped between 25-35% of the compensation you receive. CJS Solicitors will cap its success fee at 20% plus VAT of any compensation you receive.