PCP Claims Scotland: Get Help With Mis-Sold Car Finance Today
No Win, No Fee Claims
If you entered into a PCP (Personal Contract Purchase) finance deal on a new or used car before 28 January 2021, then you could be entitled to make a claim for compensation. You can make a PCP finance claim throughout the UK, including in Scotland. Start your claim with PCP Claims UK today.
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What Is Mis-Selling In Personal Contract Purchase Car Finance Agreements?
To start a PCP finance claim in Scotland, you’ll need to be able to demonstrate that you had a PCP agreement, and that there was mis-selling on your car finance agreement. This is when a lender or car dealership fails to provide clear and transparent information about the terms of the PCP finance. A mis sold PCP claim can include: –
- Hidden costs which could be failing to disclose or actively hiding interest rates, commission payments, or other fees associated with a car finance deal.
- Car finance mis-selling can also be based on high pressure sales tactics where motor dealerships or car finance companies pressurise a consumer to sign up to an agreement which is not appropriate or suitable for their needs.
- A lack of proper affordability checks on a motor finance agreement.
- Misleading or deceiving a customer in any way.
It was often the case that buyers of new and used cars were not given all of the relevant information about their finance agreement by the car salesperson, including whether the car seller or dealer would receive a higher commission payment if the interest rate on the finance agreement was also inflated.
If you think this has happened to you, then you may be able to start a car finance claim for mis-sold car finance.
Understanding PCP Car Finance Agreements In Scotland
PCP agreements are amongst the most popular types of vehicle finance agreements used by more than 80% of UK motorists buying a new or used vehicle. If you drill down into the details, it’s easy to see why.
You can choose the length of the term, pay a small initial deposit (the car dealer may even pay it for you!) and the monthly payments are low. This is because they only reflect the difference between the current value of the car and its depreciated value at the end of the agreement, called the Guaranteed Minimum Future Value or GMFV. Your monthly instalments don’t cover the real cost of the car or the credit, simply the difference between the value of the car at the start of the agreement vs the end.
At the end of the agreement, you can give the car back, renegotiate the contract to just carry on paying the monthly instalments, or pay the final payment or balloon payment to own the car outright. Most PCP car finance agreements have an annual mileage limit, with penalties if you exceed the agreed mileage.
The Financial Conduct Authority Investigation
The Financial Conduct Authority (FCA) announced an investigation into mis-sold car finance in January 2024 after several motor vehicle complaints to the Financial Ombudsman Service (FOS) from customers who believed they were paying inflated interest rates to finance providers on their PCP agreements.
The Financial Services Ombudsman upheld a case on a car finance agreement between a UK consumer and Barclays. Barclays had paid commission to the broker who did not reveal this to the customer.
The FCA banned finance providers from using discretionary commission arrangements in 2021 but anyone with a PCP agreement prior to this could be eligible to claim compensation. The FCA’s formal investigation began in early 2024 using power conferred on them by section 166 of the Financial Service and Markets Act 2000.
The FCA were due to announce their findings in September 2024 but this has been deferred to May 2025 as their investigation continues. The FCA has hinted that a redress scheme across the whole car finance industry is likely. In the meantime, finance providers have been given a pause on compensation claims which are arriving in their thousands until the FCA has concluded its review and a way to clear up the mess is found.
Make Your PCP Claim In Scotland Today
If you believe you have a mis-sold PCP agreement with either no affordability checks or undisclosed or hidden commission, then this could be a potential mis-selling scenario, and you may have been paying inflated interest rates for the duration of your PCP deal. Some people have had numerous PCP car finance agreements on multiple vehicles dating back several years.
You can start a PCP claim yourself or let a claims management company take the strain and do all the hard work for you. If you have more than one vehicle to claim for, then it can be challenging and complex to make a PCP claim and some people prefer to ask an independent claims management company to do it for a pre agreed percentage. Either way, you can still take your case to the Financial Ombudsman Service if you are unhappy with the outcome.
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.
Why Choose PCP Claims UK?
We will put you in touch with the UK’s top compensation claims solicitors who deal with PPC claims throughout the UK, including in Scotland, 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 your finance scheme. 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.
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 hidden dealer commission arrangement. There are no upfront costs.
Start Your PCP Claim Today
It’s important to start your potential car finance claim now even though most car finance companies are waiting for the FCA’s next review, due in May 2025, before dealing with complaints related to mis-sold car finance claims.
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Make Appointment
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Support Your Claim
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Allow Checks
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Leave It To Us
PCP Claims Scotland FAQs
Our most common PCP claim questions about PCP Claims Scotland are answered for you below.
It's often the case that laws are different in Scotland compared to England and Wales. However, you can still make a car finance claim if you are resident in Scotland or the car dealer or finance provider is Scottish. The current FCA review covers discretionary commission arrangements on mis-sold car finance across all of the UK and for all UK consumers - as the issues identified in the review are present across the entirety of the UK.
At the moment, the suggestion is that the Financial Conduct Authority FCA will devise a universal redress scheme for mis-sold PCP agreements that returns to consumers the difference between the interest rates they should have paid and the interest rates they actually paid on their car finance deal. The average compensation payment on the few cases that have got that far, is £1,600 but there have also been examples of awards in excess of £3,000. If you have multiple vehicles on old motor finance agreements then this could soon add up to a lot of money. You will also be entitled to statutory interest of 8% on the compensation owed to you.
You can still make a claim even if the car finance is paid off or you no longer own the motor vehicle. Some people have old PCP agreements on other motor vehicles but you can only go back as far as 2007 to make a claim for PCP mis-selling.
The FCA's mis-sold car finance review does include hire purchase agreements and HP finance as well as Personal Contract Purchase PCP finance. However, it does not include Personal Contract Hire or PCH.