Motor Financing Claims Solicitors
Recover Hidden Commission Fees in the UK
If you financed a vehicle through hire purchase (HP), personal contract purchase (PCP), or other motor finance agreements between 2007 and 2021, you might be owed significant compensation. Many UK car finance agreements included hidden commission fees, inflated interest rates, or lacked the transparency required by law. These practices resulted in consumers overpaying for their finance agreements without their knowledge.
At Cooper Hall Solicitors, we specialise in motor financing claims, helping clients recover compensation for mis-sold car finance agreements. Whether you purchased a car, van, motorcycle, or another vehicle, we ensure your claim is handled with care and professionalism, so you can reclaim what’s rightfully yours.
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What Are Motor Financing Claims?
A motor financing claim involves challenging unfair practices in car finance agreements, where dealerships, brokers, or lenders failed to disclose key information or acted in ways that created an unfair relationship under the Consumer Credit Act 1974.
Common Mis-Selling Practices in Car Finance Agreements:
Hidden Commissions: Brokers and dealerships received undisclosed commission payments from lenders for arranging your finance agreement.
Discretionary Commission Arrangements (DCAs): Brokers inflated interest rates to maximise their commission earnings.
Misrepresentation of Costs: Consumers were not fully informed about balloon payments, ownership terms, or the true costs of their agreements.
Lack of Affordability Checks: Agreements were sold without ensuring the consumer could afford the monthly payments.
High-Pressure Sales Tactics: Customers were pressured into signing agreements without being given enough time to review or understand the terms.
These issues are similar to Plevin claims, which arose from the landmark case Plevin v Paragon Personal Finance, where hidden commissions were found to create an unfair relationship. The Financial Conduct Authority (FCA) has since flagged millions of UK car finance agreements for potential mis-selling.
Who Can Make a Motor Financing Claim?
You may be eligible to claim compensation if:
- You financed a vehicle through PCP or HP agreements.
- The dealership or broker failed to disclose commission payments.
- Your agreement included inflated interest rates tied to discretionary commission arrangements.
- You were misled about ownership terms, balloon payments, or hidden costs.
- Affordability checks were not properly conducted, leading to financial strain.
- You were pressured into signing without clear explanations of your options.
Eligible Vehicles for Claims:
- Cars (new or used)
- Vans and trucks
- Motorcycles
- Caravans, motorhomes, and other vehicles
How Do I Know If I Was Mis-Sold Car Finance?
Your car finance agreement may have been mis-sold if:
- You were not informed about commission payments made to the dealership or broker.
- You were offered higher interest rates to benefit the broker’s commission.
- The salesperson failed to explain PCP vs HP options clearly or transparently.
- Key terms, such as balloon payments, ownership rights, or additional charges, were not disclosed.
- Affordability checks were skipped, and the agreement became financially unmanageable.
- High-pressure sales tactics prevented you from reviewing the terms adequately.
If any of the above applies, you may have grounds for a claim under the Consumer Credit Act 1974.
Types of Car Finance Agreements Covered
1. Personal Contract Purchase (PCP)
PCP agreements are popular for their flexibility. They involve a deposit, monthly payments, and a balloon payment at the end to own the vehicle.
Common Mis-Selling Issues:
- Hidden balloon payment terms.
- Inflated interest rates linked to commission arrangements.
- Lack of transparency about ownership options at the agreement’s end.
2. Hire Purchase (HP)
HP agreements involve paying off the car in fixed installments, with ownership transferring once the loan is fully paid.
Common Mis-Selling Issues:
- Undisclosed commissions driving up the overall cost.
- Misrepresentation of repayment terms or affordability.
How Do Motor Financing Claims Work?
At Cooper Hall Solicitors, we simplify the claims process to make it as straightforward as possible:
Step 1: Free Initial Assessment
We review your finance agreement to check for signs of mis-selling, such as hidden commissions or unfair terms.
Step 2: Agreement Analysis
Our team investigates your agreement, focusing on commission structures, interest rates, and any breaches of the Consumer Credit Act 1974.
Step 3: Claim Submission
We file your claim with the lender, supported by clear legal evidence of mis-selling.
Step 4: Settlement Negotiation
We negotiate for fair compensation, ensuring all hidden costs and interest are refunded.
Step 5: Escalation (if required)
If the lender denies your claim, we escalate the matter to the Financial Ombudsman Service (FOS) or pursue court action.
How Much Compensation Can You Claim?
Compensation for motor finance claims typically includes:
Refund of Excess Commission Fees: Any undisclosed commissions paid to brokers or dealerships.
Interest on Overpayments: Compensation for inflated interest rates or additional charges.
Additional Financial Redress: Covering the stress or financial impact caused by the unfair agreement.
Typical Payouts:
Average Compensation: £1,600 to £10,000, depending on the size of the agreement and the extent of the mis-selling.
High-Value Cases: Significant claims have exceeded £10,000 when multiple vehicles or long-term agreements were involved.
Why Choose Cooper Hall Solicitors?
Transparent Process
Clear communication and step-by-step guidance.
Proven Expertise
Years of experience handling financial claims.
Nationwide Support
Helping clients across England reclaim hidden costs and fees.
No Win, No Fee
You pay nothing unless we secure compensation for you.