06/10/2021
What Is Mis-sold Car Finance?
A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of mis-selling on all types of vehicle financing options. It found that over 560,000 consumers were paying more than 50% more on their car finance than they should be.
Mis-selling was found on all motor vehicle types, including new and used cars, vans, motor cycles and motor homes/caravans, under all vehicle financing options such as personal contract hire (P*P), hire purchase (HP), contract hire or a car loan. The most popular of these has been shown to be P*P agreements which involves lower monthly payments followed by a final lump sum or ‘balloon’ payment. As P*Ps are essentially interest-only loans, interest charges can be more expensive than anticipated.
