Ford PCP Claims: Make a Claim Against Ford Finance UK
No Win No Fee Claims
UK residents who bought a Ford car using Personal Contract Purchase (PCP) before 28 January 2021 may be able to make a PCP car finance claim if their Ford dealer did not reveal hidden incentives. Some Ford credit agreements were subject to discretionary commission, a covert arrangement between the Ford dealer and the finance company, which may have adversely impacted the interest rate on Personal Contract Purchase agreements. Sometimes, interest rates were higher than they should have been, meaning customers paid more money every month on their finance agreement than they ought to have.
Let us put you in touch with the UK’s leading PCP claims solicitors to help you apply for compensation. It’s on a strict no win no fee basis, so you won’t pay a penny unless you receive compensation, and it’s free to check!
What is the Story Behind Mis-selling on Ford Personal Contract Purchase Agreements?
Ford PCP claims for discretionary commission are part of a wider picture in the motor industry and Ford is not the only manufacturer involved in this emerging scandal.
Before 2021, it had been widespread practice for a finance company to offer an enhanced commission to a dealer if the interest rate on the customer’s finance agreement was adjusted upwards. You, the customer, paid higher monthly payments for your new Ford car and were none the wiser.
The Financial Conduct Authority (FCA) banned discretionary commission arrangements in 2021, so now there is no incentive for a finance company to offer an enhanced commission return to a car dealer if they impose a higher interest rate.
Why Choose PCP Claims UK
We will put you in touch with the UK’s top PCP claims solicitors to help you recover compensation for higher interest rates and inflated monthly repayments from dealers and brokers who didn’t give you all the facts at the start of the agreement. It’s strictly no win, no fee, and it’s completely free to check.
- Claim £1000s – Receive compensation for your mis-sold PCP finance agreement.
- Work with the pros – We team you up with the UK’s leading PCP claim solicitors.
- No win, no fee – Our no win no fee basis means no financial risk to you.
- 60 second form – Fill in our form to find out if you have a claim.
Zero risk – We only share your data with solicitors if you’ll qualify.
The FCA Investigation into PCP Mis-selling
Over and above the ban on discretionary commission arrangements, the FCA has begun an investigation into old PCP agreements. This started in January 2024 after a case in which the Financial Ombudsman Service (FOS) supported a customer claim against Barclays Partner Finance. Barclays had paid a commission to a broker to the detriment of the claimant.
There has been a huge amount of complaints from customers about Personal Contract Purchase finance which has encouraged the FCA to start their comprehensive review. This is for Ford credit agreements taken out before the FCA’s recent ban.
What is a Personal Contract Purchase Agreement?
A PCP agreement is a car finance agreement with certain characteristics. There is typically a flexible upfront payment, some of which may be paid by the dealer as an inducement alongside other things like covering the road fund licence for the first year. This deposit is followed by monthly instalments and then a final payment, sometimes called a balloon payment.
Around 90% of new car purchases are funded by a PCP agreement as this is the most popular way to buy a new car. These schemes protect motorists from the depreciation of the vehicle and offer a guaranteed minimum future value (GMFV) which factors in fair wear and tear. PCPs are also very flexible.
Consumers can avoid the optional final payment, renegotiate and carry on with their monthly payment or buy the car outright at the end of the agreement. You can also break the finance agreement and start a new agreement on a different vehicle.
Not all Ford credit agreements or fixed monthly rentals are subject to the FCA review. There are different Ford options to acquire a car. The following arrangements are not subject to review at this time: –
- Ford Personal Contract Hire (PCH) schemes
- Hire purchase
- Ford Finance Lease plans
- Ford business finance schemes
Start your Ford PCP Claim Today
You don’t need to wait for the next update from the FCA, you can start your claim today by finding out whether there was a discretionary commission arrangement (DCA) on your PCP agreement and you paid higher monthly payments as a result.
If there was a DCA and you weren’t told about it, meaning you have been exposed to additional costs, you could be entitled to potentially thousands of pounds in compensation.
Start your free claim now with our recommended and expert compensation solicitors. We’ll look into the full details of your case and you won’t pay a penny unless you win compensation.
Should I start a Ford PCP Claim Now?
While the FCA is running its investigation, it has paused the usual deadline of eight weeks for motor manufacturers to respond to complaints about discretionary commission arrangements.
This pause, which the Financial Conduct Authority announced in January 2024, will last around nine months to the autumn. This is to allow time for the FCA to complete its enquiries and work out a way forward which could include an industry-wide compensation scheme a bit like the PPI scandal twenty years ago.
Most car finance providers are waiting for the next update from the Financial Conduct Authority which is due by September 24, 2024. So, if you make a claim you probably won’t receive a final response from Ford at the moment.
However, you can still start your claim by determining if Ford had a discretionary commission arrangement in place on your PCP which you were not aware of
If you had a Ford PCP car finance agreement taken out before 28 January 2021, you can still register your potential claim and should do this without delay.
Want to find out more? Read on or get in touch with us today. We’ll connect you with a law firm that works on a No-Win, No-Fee basis, so it won’t cost you anything to check your finance agreement and see if there was a dealer commission arrangement.
How Much Compensation Could I Get?
Because your monthly instalments were subject to a higher interest rate, you may be able to claim the difference between the interest on the monthly payments that you are paying and a lower, flat rate that would have been applied if there had been no hidden commission arrangement.
In one of two cases already reviewed by the Financial Services Ombudsman (FOS), the interest rate on a PCP agreement was 5.5%, double what they could have received without the commission which was 2.49% That’s a lot of extra interest!
The difference between the two interest rates will dictate how much money you could receive. Compensation will also be affected by other factors such as the contract term and the amount you borrowed to finance the vehicle, especially if it was a high-value new Ford car or commercial vehicle.
Any compensation will receive interest at the statutory rate of 8%. This is applied to all the monthly payments you’ve made.
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How Do I Know If I Have Been Affected by a Discretionary Commission Arrangement on my Ford PCP Finance Agreement?
When you bought your new Ford car, the dealer may have told you about their commission arrangement or it could be written in the finance documents. If you didn’t know anything about it then you may be able to make a claim.
Your plan must have been taken out before 28 January 2021. After this date, the FCA has banned discretionary commission arrangements on PCP agreements.
DID YOU KNOW…
You could still claim even if your PCP agreement ended more than six years ago or if you have paid off the loan and own the car outright or even if you no longer have the vehicle. If you have an old PCP agreement and have only just learned about the FCA investigation, you potentially have three years to bring a claim.
Is Ford The Only Finance Company Involved In Hidden PCP?
Ford Finance is not the only company under investigation by the FCA. Other motor manufacturers like BMW and Audi also have their own finance company and some have used third-party providers like Black Horse Financial Services, Santander and Close Brothers to offer finance to customers.
Because the investigation is going back to 2007, it’s possible you may have more than one PCP agreement and these could be with different finance providers. Each PCP agreement will be the subject of a separate claim.
Am I Eligible To Make A Ford PCP Claim?
Only PCP agreements are eligible for a potential claim. If you took out a PCP agreement on a Ford car before 28 January 2021, you may be able to start a claim and receive a compensation payout which could amount to several thousand pounds.
Ford PCP Claims FAQs
Our most common PCP claim questions about Ford are answered for you below.
The FCA investigation applies to all PCP finance arrangements on Ford cars and it doesn't matter whether you bought a new Ford car or a used vehicle. But remember, it doesn't apply to hire purchase or Personal Contract Hire schemes.
No. Just because you have a PCP finance agreement arranged via a Ford dealer, it doesn't mean there was a DCA in place. Your finance plan may have had no commission arrangement or the commission charged was fixed and did not affect the interest rate on your monthly payments.
No, you should still get your claim under way now and find out for definite if there was a discretionary commission arrangement on your PCP finance agreement with Ford. However, you are unlikely to get a final response from Ford credit services before the FCA's next announcement, which is due by September 24 2024.
Why Use Us?
- Fast results – We work with only the best PCP claim solicitors in the country, who all prioritise your time and compensation above all else.
- No upfront risk – You don’t pay a penny for legal services unless you win, and only then will a small % of your compensation be deducted for their work.
- Industry leaders – When you work with us, you work with claim experts who have connections to leading PCP claim solicitors.