Check now to see if you qualify by completing our short online free checker tool.
Start Free CheckAs seen in:
Use our free checker tool which has been created to identify if you could be eligible to claim compensation for your car finance.
Digitally sign our terms of business which automatically ensures that we have the permission to act on your behalf.
Once your claim has been initiated, we will keep you updated throughout the process. We may also come back to you with additional questions.
The FCA warns you may be affected by the issue:
- You bought a car on finance (such as hire purchase or personal contract purchase) before 28th January 2021.
- There was a discretionary commission arrangement between the dealership and your lender.
- You were not made aware of the commission being made by the dealership.
If you have been affected by the above or feel you were pressurised into taking car finance with your dealership, you may be eligible for compensation.
Some lenders that are being investigated include:
- Black Horse
- Lloyds Banking Group
- Santander
- Close Brothers
- Royal Bank of Canada
- Barclays Finance
If you took finance out with the above, or any other provider, to purchase a car before January 2021, you could be eligible to receive compensation.
"As the Managing Partner at Veritas Solicitors, I'm passionate about aiding UK car owners in the latest PCP scandal. Our commitment extends to simplifying the process through an online digital system, ensuring a swift and hassle-free experience for our clients. At Money Britain, we're here to make your compensation claims journey straightforward and effective."
Faraz Fazal - Managing Partner
Start FREE CheckThe FCA released a statement in relation to motor finance discretionary commission arrangements complaints and published two upheld decisions from the Financial Ombudsman Service (FOS), where the Ombudsman was in favour of the customer and awarded compensation, their finance provider had to pay. Knowing this will increase the volume of claims being submitted to the financial providers and the FOS. The FCA are pausing the complaints process. The FCA statement only relates to motor finance commission claims where the commission was paid under a discretionary commission arrangement and therefore does not affect affordability cases or other commission cases such as fixed commissions.
Normally the finance providers have around 8 weeks to respond to a complaint. The FCA has stated in their statement that the finance provider will not need to respond to the complaints until the end of September 2024. Therefore, allowing the finance provider around 9 months to provide a response should a complaint be logged today. Following a response from the finance provide, we normally have 6 months to refer the matter to the FOS should you not agree with the outcome. The FCA have also extended the 6 months’ time period to 15months.
This is where the finance provider afforded the credit broker/car dealership a discretion as to the interest rate charged in return for higher commissions. Each customer should have been made aware of this arrangement and given the opportunity to negotiate the interest rate. As per the FCA statement, and the Ombudsman’s decision published, customers can be compensated the difference between the interest rate they were charged and the interest rate they could have been charged. The regulator is concerned customers who took out PCP agreements before 2021 might have been overcharged.
Yes. Originally, we submitted a claim against your finance provider and not a complaint with a view to issue proceedings rather than submitting these cases to the Financial Ombudsman Service. Considering this this new information, we will be reviewing our cases and potentially looking to submit Letter of Complaints in order to maintain flexibility. As the “test” litigation relates to the same type of claim, we will look to explore both avenues to ensure we have the best possible outcome in relation to your case. We will continue to liaise with the finance providers and ask them to confirm whether the commissions were ‘discretionary commission arrangements’ or whether ‘fixed commissions were paid’ to help us progress your case. Is a claim and complaint not the same thing?
Our Letter of Claims are written as per the Civil Procedure Rule (CPR) with a view of issuing proceedings. We must adhere to the process of the CPR. A Letter of Complaint does not allow you to issue proceedings following the letter however you do have the right to refer the matter to the FOS. Furthermore, both have different timelines and rules which must be followed.
It has been advised that the FCA will release their full statement by September2024 and given the pause put in place, this may impact timelines slightly. Although there may be a delay, we firmly believe that this will increase the probability of achieving optimal results. We will ensure to continue to update you as soon as any further progress has been made.
No. The pause relates to discretionary commission cases only. We trust the above answers any queries you may have had, however should you wish to discuss anything further, please do not hesitate to contact our offices on 0161 974 3320 option 2, option 1. Alternatively, you can email us on customerservice@veritassolicitors.org.uk.