Car finance has become more popular in the UK than ever before but unfortunately many people have been mis-sold car finance products, and they don’t even know it. A recent survey by Which? Found that mis-sold car finance was the second most complained about financial product, with over a third of the complaints made against car finance firms.
Consumers have been increasingly dissatisfied with the car finance arrangements they’ve entered into. These fail to provide what was advertised, or simply see you paying a lot more than you expected. In our experience, most customers who aren’t satisfied with their car finance arrangement believe it’s due to them being mis-sold. We look at what actually constitutes mis-selling and some reasons why clients we represent have may suffered at the hands of Co-operative Bank.
What is Mis-sold PCP Car Finance?
Car finance mis-selling is a type of mis-selling meaning where customers have been sold car finance products that are not right for them. It is one of the most common areas of mis-selling in financial services and can see both consumers and businesses ripped off if they haven’t checked the basics.
In recent years, the Financial Conduct Authority (FCA) has become increasingly focused on steering people into better value car finance deals with affordability being the key. This has led to an increase in new regulations and stricter enforcement. As a result, lenders are pushing harder than ever to ensure that people are being sold loans which offer decent value for money. In practice, however, this isn’t always the case. As recently as November 2017, the FCA released another report demonstrating considerable evidence of mis-selling on all types of vehicle financing options.
Why was car Finance Mis-sold?
Well, there were a number of reasons, but the Financial Conduct Authority’s review found that many of these can be traced back to how lenders addressed the risk inherent in selling a complex and variable product to their customers.
Some reasons why you may have been mis-sold car finance by Co-operative Bank.
1/ The salesperson didn’t properly explain the finance deal to you. This might have happened because they were inexperienced or didn’t have enough knowledge to explain things properly. Or maybe the salesman or saleswoman was pressuring you and made it impossible for you to think clearly and make decisions without being rushed into doing anything.
2/ If you were told that the finance package offered was their “recommendation,” you might well have been mis-sold. An impartial broker should present a range of options for any car finance deal. This may include different interest rates, various deposit amounts and repayment periods.
3/ It was not clearly stated who was responsible for dealing with the car repairs.
4/ The dealer did not explain who owns the vehicle in some instances, this is can be a third party hire-purchase firm, not the actual car dealer.
5/ Your salesperson failed to adequately detail interest charges and you have now failed to understand what you have actually signed, leading you to take out your loan at an inappropriately high interest rate.
6/ The commission aspect of the sale was not correctly explained.
7/ Credit checks and validation of your income and expenditure to ascertain affordability were not correctly dealt with and assessed.
8/ Charges and fines for breaching the agreement could well be unfair or high.
If you think you have been mis-sold PCP car finance by Co-operative Bank we can help you make a claim.