FCA confirms extension of complaint handling pause for motor finance DCAs
On 24 September 2024, the Financial Conduct Authority ( FCA ) published a Policy Statement, PS24/11 , confirming that it is extending...
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Our dedicated and experienced team investigates, represents, negotiates and then settles claims on behalf of clients. We currently focus specifically on issues surrounding the mis-selling of PCP claims which has enabled us to develop a deep understanding and expertise in representing clients with these claims.
Claim-Smart Limited
is a firm of financial mis-selling specialists, focused on helping clients with potential compensation claims against leading financial services providers.
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With Claim-Smart Limited you can expect:
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We believe in working on behalf of our clients with full commitment, which is why we operate on a no-win, no-fee basis. There are no upfront costs for you to pay, ensuring that our services are accessible to all who require them.
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Our experienced team specialises in navigating the intricacies of mis-sold PCP finance agreements, providing you with the expertise needed to secure the compensation you are entitled to.
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We prioritise clear communication and personalised support, and strive to keep you informed at every stage of the claims process.
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Our goal is to achieve a swift and favourable outcome for your claim, allowing you to move forward with confidence and peace of mind.
At Smart-Claim Limited we combine innovation with experience to deliver results that matter. Please click on the “Make Your Claim” link below and let us guide you towards a successful resolution for your mis-sold PCP finance agreement.
PCP Motor Vehicle Finance
Secret Undisclosed Commissions Paid
Between 2007 and 2021 the way Motor Dealers and Brokers dealt with Consumers was relatively simple and open to widespread abuse:
When a consumer purchased either a new or used car from a Motor Dealer they would invariably be asked if they wanted financing using a Personal Contract Purchase (PCP). In the event the buyer said “yes” the broker or car dealer would introduce the consumer to a lender. At the same time the Broker or Motor Dealer would inform the consumer of the interest rate that the lender would charge them.
Crucially both the Lender and Broker or Motor Dealer failed to disclose to the consumer:
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That the interest rate they were being charged was actually being determined by the broker or car dealer itself.
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That the interest rate they were being quoted was often times significantly higher than the interest rate they would pay if they were to contact the lender directly (without going through the Broker or Motor Dealer)
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That the difference between the rate the broker or car dealer was quoting and the rate that could be obtained if the consumer had gone directly to the lender was being paid as a commission to the Broker or Motor Dealer.
In essence the difference between the interest rate a consumer obtained if they were introduced by a broker or car dealer, and that if they went directly to the lender was being kept by the broker or car dealer, as a commission is what is being referred to by the Financial Conduct Authority (FCA) as a Difference in Charges (DIC)
The Motor Dealer was effectively able to set an interest rate as high as they wanted to based on what they thought the consumer could afford and pocket the difference without telling the buyer.
PCP Claims
If a borrower of a loan believes that their Personal Contract Purchase (PCP) may have been subject to a Difference in Charges (DIC) claim they may be owed £1,000s in compensation.
Principal reason for making a claim from a lender
One of the main reasons you may be entitled to redress is that the lender did not fully disclose to you the details of the commission they were paying the person who sold you the car, or the dealer/broker who introduced you to the lender.
You were not informed that you could have saved a lot of money by taking out the loan if you simply went directly to the lender
Other reasons you may have a claim against a lender:
You felt pressured at the time into buying a product or committing to a service
The bank, broker or lender failed to advise you of the financial risks
You were promised something that was not delivered
The bank, broker or lender did not fully disclose details of all applicable charges
What can you do if you were a buyer and potentially affected:
You can use Claim-Smart Limited to act on your behalf to determine if you are owed anything, for which we will charge you a no-win / no-fee according to the FCA’s guidelines. We currently charge up to 36% (including VAT) of the amount, if any, you receive from the lender.
However, it is important to note that you do not need to use us or anyone else, to make your claim or complaint to your lender. You can do this yourself for free. If your claim or complaint is not successful on the first instance you can refer it to the financial ombudsman service yourself, again for free.
However you choose to make a claim you should be aware that the FCA is currently reviewing the process, so lenders do not have to make any payments until after the FCA has completed its review. This is currently scheduled to be completed on the 5th December 2025 so we believe payments, if any, from lenders will not start until several weeks after that date.
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