Sentinel Legal will never cold call you or request your personal information unsolicitedSentinel Legal will never cold call you or request your personal information unsolicitedSentinel Legal will never cold call you or request your personal information unsolicitedSentinel Legal will never cold call you or request your personal information unsolicited
Sentinel LegalSentinel Legal

Motor Finance

PCP Mis-Selling Scandal Rivals PPI, as 90% of New Cars Sold on Finance Are Under Scrutiny

With 90% of new cars sold through dealerships using PCP finance, Sentinel Legal warns that this potential mis-selling crisis could be just as far-reaching as the PPI scandal — drawing direct parallels to the landmark Plevin ruling.

12th September 20244 min read
PCP Mis-Selling Scandal Rivals PPI, as 90% of New Cars Sold on Finance Are Under Scrutiny

PPI, Plevin, and PCP: A Common Thread of Mis-Selling

12 September 2024 — As consumer awareness around financial mis-selling continues to rise, Sentinel Legal is bringing attention to a growing issue that echoes the infamous PPI scandal and the pivotal Plevin case: Personal Contract Purchase (PCP) motor finance agreements. With 90% of new cars sold through dealerships using PCP finance, this potential mis-selling crisis could be just as far-reaching as PPI.

The Payment Protection Insurance (PPI) scandal saw millions of consumers reclaim billions in compensation after being mis-sold policies they didn't need, were not suitable or eligible for, or they were not aware they had. The landmark 2014 Plevin ruling further expanded these claims, allowing consumers to seek compensation when a significant portion of their PPI premium was an undisclosed commission.

Fast forward to today, and a similar pattern is emerging in PCP motor finance agreements. Like PPI, many of these agreements involve hidden commissions paid to brokers or dealers — commissions that were never disclosed to consumers.

Key Parallels Between PPI/Plevin and PCP Claims

  • **Undisclosed Commissions** — as with the Plevin case, many PCP agreements involve commissions paid to brokers or dealers that were not disclosed to consumers.
  • **Widespread Mis-Selling** — both PPI and PCP products have been mis-sold to consumers, with misleading terms often buried in complex contracts.
  • **Complex Agreements** — PCP contracts, like PPI policies, are often difficult for the average consumer to understand.

Expert Guidance and Support from Sentinel Legal

With extensive experience in financial mis-selling cases, Sentinel Legal offers:

  • **Expertise in Financial Mis-Selling** — deep understanding of financial institutions' tactics in PPI and PCP agreements.
  • **Thorough Claim Evaluation** — comprehensive reviews of PCP agreements to determine if consumers were unfairly charged.
  • **Risk-Free Legal Support** — no-win, no-fee service.
  • **Personalised Support** — clear communication and guidance through every step of the claims process.

Sam Ward, Director, Sentinel Legal:

"With years of experience fighting car finance companies, we have successfully recovered over £250,000 in compensation for our clients and have been contributing to the FCA's investigation by providing crucial evidence of mis-selling practices. The potential for mis-selling and undisclosed commissions in PCP agreements could affect hundreds of thousands of consumers across the UK and the time to act is now."

Like PPI, PCP agreements involved hidden commissions that were never disclosed to consumers, creating unfair financial relationships. The Plevin ruling set a precedent that applies equally to undisclosed commissions in PCP agreements.

90% of new cars sold through dealerships use PCP finance, meaning the potential scale of mis-selling is enormous — comparable to the PPI scandal.

If you were not told about commissions paid to the broker or dealer, or if the terms were unclear, you may have been mis-sold. Sentinel Legal offers a free, no-obligation assessment.