Volvo PCP Claim: A Guide To Reclaiming On Mis-Sold Agreements
Volvo PCP No Win No Fee Claims
UK residents who bought a Volvo car using PCP or Personal Contract Purchase (PCP) before 28 January 2021 may be able to claim compensation if the Volvo dealer failed to disclose hidden commission arrangements. Your Volvo finance agreement may have been subject to a secret discretionary commission agreement, a deal between your Volvo dealer and the finance company which inflated the interest on your PCP finance agreement. Many customers paid more than they needed to.
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!
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 qualify.
How Were Volvo Personal Contract Purchase Agreements Mis Sold?
Volvo Car Financial Services is one of several motor manufacturers investigated by the Financial Conduct Authority for car finance irregularities.
Many Volvo customers were blissfully unaware when they arranged a finance package on a new car that the company offering the PCP deal, in this case, Volvo Car Financial Services, was adjusting the interest rates up on Volvo offers so effectively the customers had higher monthly payments.
This scandal has only recently come to light after complaints to the Financial Conduct Authority. The FCA outlawed discretionary commission arrangements in 2021, so after this date, Volvo Finance has been unable to offer enhanced commission to a car dealer if they, in return, impose a higher interest rate on the customer’s PCP agreement.
What Is The FCA Investigation Into Volvo PCP Mis-Selling?
The FCA investigation into mis-selling on vehicle agreements began quite quietly in January 2024 when a customer made a complaint to the Financial Services Ombudsman (FOS) that Barclays Partner Finance had paid commission to a broker which disadvantaged the complainant.
The FOS upheld the complaint, which then snowballed into an avalanche after the FCA announced it would conduct an investigation into personal contract purchase agreements in the motor industry.
Finance agreements from several major car manufacturers, including Volvo Finance, are currently under review by the FCA to see whether customers signed on the dotted line unaware of discretionary commission arrangements. This could be due either to deliberate deception or poor sales practices, where the DCA was hidden in the small print.
What Is A Volvo Personal Contract Purchase Agreement?
A Personal Contract Purchase agreement is a flexible finance agreement with certain features, which makes it one of the most popular choices for securing funds to buy a new or used Volvo.
PCP finance is a fixed sum loan agreement with typically a flexible upfront payment or deposit which can be paid by the customer, the dealership or both. After that, there is a defined number of monthly payments over a fixed period followed by a larger, optional final payment, often referred to as a balloon payment or settlement figure.
Approximately 90% of new car purchases are funded by PCP finance. It’s popular because of its flexibility, competitive interest rates, and protection against vehicle depreciation. PCP finance offers a guaranteed minimum future value (GMFV).
Customers who want to carry on their finance agreement can opt to keep the vehicle and re-negotiate the monthly payments for another fixed term. This is a good way to avoid excess mileage charges. The other option is to meet the final payment and then start again with a fresh personal contract purchase on a new vehicle.
Not every Volvo finance agreement is under review, only PCP finance. The FCA review does not include hire purchase, business finance schemes or lease plans.
Should I Start A Volvo PCP Claim Today?
The FCA are due to announce their review in September 2024, but you don’t need to wait for this – you can start a claim today.
The first thing you need to do is establish whether there was a discretionary commission arrangement on your Volvo finance agreement which impacted the interest rate you paid and your monthly payment.
If there was a DCA on your Volvo car finance and you didn’t know, you might have paid potentially hundred or thousands of pounds worth of additional interest over the course of your PCP agreement. You could claim compensation dating back several years plus interest accrued at the statutory rate.
Start your free claim now with our recommended and expert solicitors. We’ll look into the full details of your case and you won’t pay a penny unless you win compensation.
How Much Compensation Could I Receive?
Industry commentators think that there could be a large compensation scheme for mis-sold customers on a par with the PPI scandal a few years ago.
If you were paying a higher interest rate on your Volvo car then this will have affected all the monthly payments on your PCP deal. You should be able to claim compensation for the difference between the interest rate you did pay and a lower, flat rate that would have been in place had there been no hidden commission arrangement.
The Financial Service Ombudsman has already commented on one mis-sold PCP finance claim where the interest rate was double what the customer could have been offered.
If there is a DCA on your car agreement, then your compensation will be based on the difference between the two interest rates. You will also be entitled to claim statutory interest at a rate of 8% on all the monthly payments you’ve made.
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Start Your Volvo Finance PCP Claim Now
The FCA is due to comment on its investigations in the autumn of 2024, so you shouldn’t waste any time. Most manufacturers involved, including Volvo, are waiting for further information after the FCA review. The FCA has agreed on a pause, so car makers are absolved from the eight-week window to respond to complaints about discretionary commission arrangements for now.
Although you won’t receive a final response from Volvo Car Financial Services, it’s important to lodge your claim as soon as possible. At the very least, you should start your claim and establish for certain whether there was a DCA on your PCP finance package, which you didn’t know about.
If you had a Volvo 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.
