Mercedes PCP Claims:
Mis-sold Mercedes Finance
No Win, No Fee Claims
UK residents who entered into a PCP (Personal Contract Purchase) with a finance company to buy a new or used Mercedes Benz car before 28 January 2021 may be able to make a mis-sold car finance claim for compensation if there were hidden commission arrangements in place which led to higher interest rates on finance products.
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!
How Were Mercedes Customers Mis-sold Car Financing?
In some cases, customers of Mercedes Benz were not given all of the information about the PCP agreement to finance their new vehicle. Often, the dealership would fail to disclose that they were receiving a higher commission rate if the interest rate applied to the agreement with the consumer was also higher.
The Financial Conduct Authority (FCA) is still investigating discretionary commission arrangements (DCAs) and their impact on the consumer. In many cases, the commission was hidden, meaning the customer could not determine the real cost of the finance on offer and whether it was a good deal.
The FCA has now paused the requirement for Mercedes Benz and other motor manufacturers to resolve these claims whilst it investigates. The FCA is currently consulting on a potential redress compensation scheme put in place for those who have been victims of mis-selling.
If you have a PCP agreement taken out after 2007 and before 28 January 2021, you can still register a car finance claim even with the FCA investigation. You should do this today.
Mercedes Benz PCP Claims UK
More About PCP Claims
- PCP finance is the most popular way to purchase a new or used car; 80% of new vehicles are financed using a PCP agreement. PCP finance is cost-effective for the consumer and won’t penalise you for the depreciation on a new vehicle. It offers plenty of benefits compared to other financing options.
- PCP plans work with a deposit-style payment at the start and then monthly repayments direct from your bank account throughout the duration of the agreement. Deposit payments are usually flexible and may include a contribution from the dealership.
- At the end, there is another lump sum payment, often called a balloon payment to purchase the vehicle. There is also the option to re-negotiate the agreement and just carry on paying in instalments or you can hand back the vehicle and start a fresh PCP finance on a new car.
Find Your Eligibility For Mercedes Benz Compensation
You could be eligible for a Mercedes PCP claim compensation award if you can show that your financing was subject to a discretionary commission arrangement which inflated the interest rate on your loan and which was not disclosed to you at the time.
A discretionary commission arrangement may have increased your monthly payment to the lender so you could have a valuable claim against Mercedes Benz Finance.
Why Choose PCP Claims UK?
We will put you in touch with the UK’s top PCP compensation 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 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.
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 PCP finance agreement and see if there was a dealer commission arrangement.
How Much Compensation Could I get?
If there is evidence of mis-selling and your finance agreement falls between the relevant dates then you should be able to claim the difference between the interest rate you should have paid and the interest rate you actually paid. In some cases, this is nearly double!
On top of that, every monthly payment made to the finance company will be subject to statutory interest of 8%. If you had a long contract with Mercedes Benz or a high value car, then you could be owed thousands. The Financial Services Ombudsman (FOS) has already found in favour of a limited number of customers in just this situation
DID YOU KNOW…
You can still make a claim even if the finance is paid off or you no longer have ownership of the car. If your agreement is really old (it must be after 2007) and you have only just heard about car finance mis-selling complaints, you will probably have three years to bring a claim from the date you found out about the potential mis-selling.
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How Was This Problem With Car Finance Discovered?
The FCA decided to introduce a ban on discretionary commission arrangements on car finance deals in November 2021, but their investigation into historical mis-selling was triggered by a case decided by the Financial Services Ombudsman in January 2024.
The Financial Services Ombudsman found in favour of a customer in a case involving a finance agreement with Barclays. Barclays paid commission to the broker who did not reveal this to the customer.
There have been so many complaints about historic PCP deals that the FCA launched a formal investigation using their powers under section 166 of the Financial Services and Markets Act 2000. There is plenty of information on their website relating to potential claims.
The situation is not clear cut with finance providers rejecting consumer complaints and contesting the fact that they have not been fair to motorists. Compensation is not guaranteed, but is possible.
Some people have already taken claims to the Financial Ombudsman Service and others have sought redress in the County Courts when their complaints were rejected.
Start Your Mercedes PCP Claim Today
It’s important to start your potential claim now even though most car finance companies are waiting for the FCA’s next statement as regards a potential redress compensation scheme. You’ll need to determine whether you are eligible and if there was a discretionary commission arrangement on your car finance with Mercedes Benz.
If there was, you could have been paying inflated monthly repayments for years. So far, the average compensation payment for mis-sold car finance is £1,600 but there have been higher awards of £3,000 and more
Mercedes PCP Claims FAQs
Our most common PCP claim questions about Mercedes are answered for you below.
No, not usually. The broker is the person or organisation who arranged the finance so that could be a car salesperson or the dealership. The lender is the finance company providing the money.
No, you won't diminish your rights or the size of any potential compensation payout. It's important to register your claim now and verify that you are eligible and that your agreement was subject to a discretionary commission arrangement. However, you are unlikely to receive a final response from your finance provider until after the FCA's next update in September 2024.
No, some car finance deals had no commission payment and some had a fixed commission which had no connection with the interest rate on the loan. You can review your paperwork if you still have it but if you don't or the terms are ambiguous, it's always worth checking with our team of expert solicitors.
No, Personal Contract Hire (PCH) is a different finance model to PCP and these agreements are not being reviewed by the Financial Conduct Authority.
The situation with PCP mis-selling is far from clear and compensation is not guaranteed. An expert can check your eligibility and make sure you meet all the necessary requirements to start a claim. You won't have to negotiate directly with the finance company either or worry about what to do if they try and reject your claim
No, you can start a claim for compensation if your finance agreement is eligible and it doesn't matter if the Mercedes vehicle you bought was new or used
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.
Start a free claim with our expert solicitors. There is absolutely no charge unless your claim is successful and you win compensation.