Volkswagen PCP Claim
Volkswagen PCP No Win No Fee Claims
UK residents who bought a new or used Volkswagen car with Volkswagen Financial Services or a third-party provider may be entitled to make a PCP finance claim for compensation if the dealer failed to disclose their commission arrangements. Were the finance options explained to you when you signed up for your car finance? If there was a hidden commission arrangement between your VW dealer and Volkswagen Finance, and the information provided didn’t explain this, you could have paid a higher interest rate on your PCP agreement. You may be able to make a claim for compensation.
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 Volkswagen Personal Contract Purchase Agreements Mis Sold?
Thousands of VW customers who took out finance products to purchase a Volkswagen car were unaware that the retailer or dealer may have had a hidden discretionary commission arrangement with the finance provider.
The interest rates were adjusted upwards in exchange for a higher commission payment, meaning many VW customers were paying significantly higher monthly payments on their finance agreement than they needed to. The purchase fee remained the same, but the monthly price was upped by this secret arrangement, meaning you were unfairly paying more than you ought to have been. How much more would require a finance calculator and an in depth investigation from a member of our team.
Volkswagen customers who took out a finance agreement before 28 January 2021 on a new or used VW car using a finance agreement provided by either Volkswagen Financial Services or Solutions PCP Finance, including hire purchase and lease purchase, may be able to make a claim.
The Financial Services Ombudsman upheld a customer complaint that caught the Financial Conduct Authority’s (FCA) attention. This started a full-scale investigation of several motor manufacturers and third-party finance providers. The FCA outlawed discretionary commission arrangements in 2021 as a starting point, but thousands of potential claims are in the pipeline against Volkswagen Financial Services and other finance providers.
What Are The Next Steps With The FCA Investigation Into Volkswagen PCP Mis-selling?
The FCA was due to make an announcement in September 2024. However, due to the scale of their investigation and the potential for mis-selling on vehicle agreements dating back many years, they have now delayed their response until May 2025.
It means that organisations that receive complaints are not obliged to review your case and issue a final response. However, your finance provider must confirm whether or not there was a DCA in place on your agreement within a reasonable timeframe.
What Is A Volkswagen PCP Agreement?
A Personal Contract Purchase agreement is one of the most popular finance options for buying a new or used car. With a small deposit, customers can buy their next car for a fixed monthly price and an agreed annual mileage rate.
PCP finance deals with the challenge of rapid depreciation on new vehicles with what’s called GMFV or Guaranteed Minimum Future Value. No wonder it has been the most popular choice amongst finance options for VW customers and within the wider motor trade. At the end of the agreement, there is a large final payment, often called a balloon payment. This is an optional final payment so you can keep the car or return it and start again with a new vehicle.
If you need to start a Volkswagen PCP finance claim, then contact our team today.
