Car finance has become an increasingly popular way for people to purchase vehicles. However, a disturbing trend has emerged: consumers may have been overcharged significantly on their car finance agreements. This practice, known as mis-selling, has left many people out of pocket.
If you’re one of the many consumers who have entered into a car finance agreement, you could be owed thousands of pounds. Mis-selling practices by car finance companies have resulted in inflated interest rates and hidden charges, leaving customers to pay more than they should.
This article focuses specifically on MotoNovo PCP (Personal Contract Purchase) agreements. Like many other car finance providers, MotoNovo may have engaged in practices that have led to customers overpaying. If you suspect you’ve been affected, you’re not alone.
At PCP and HP Claims, we specialise in helping consumers reclaim money lost to car finance mis-selling. With our expertise, you can increase your chances of a successful Motonovo PCP claim and get the compensation you deserve.
Understanding MotoNovo PCP Mis-selling
A Personal Contract Purchase (PCP) agreement is a popular form of car finance. Under this arrangement, you make regular payments over an agreed period, with the option to either own the car at the end of the term by paying a final lump sum (the balloon payment) or return the car and upgrade to a new one.
Discretionary Commission Arrangements (DCAs)
At the heart of the car finance mis-selling scandal are Discretionary Commission Arrangements (DCAs). These were deals between car dealerships and finance companies, including Motonovo, Close Brothers, and Black Horse, related to PCP claims. Essentially, the dealership could earn extra commission by charging customers higher interest rates on their mis-sold car finance PCP agreements. This meant that consumers were paying more for their cars without realising it.
The Impact of DCAs on Consumers
DCAs had a significant negative impact on consumers. Due to the increased interest rates, customers ended up paying substantially more for their cars over the term of the agreement. This extra money went directly to the dealership and finance company as a commission, rather than benefitting the customer.
The FCA’s Role in Ending DCAs
Recognising the unfairness of DCAs, the Financial Conduct Authority (FCA) stepped in to protect consumers. They banned DCAs on January 28, 2021. This was a crucial step towards ensuring that customers are treated fairly and are not subjected to hidden charges. However, there is concern that some lenders continued to use similar practices even after the ban.
Signs of MotoNovo PCP Mis-selling
Here’s a checklist to help you determine if your MotoNovo PCP agreement might have been mis-sold:
| Indicator | Description |
| Limited options presented | The car dealer presented the MotoNovo PCP deal as the only option, without offering you a range of choices or encouraging you to shop around. |
| Commission not disclosed | The car dealer failed to disclose that they would earn a commission if you signed their finance deal. |
| Commission amount not disclosed | The car dealer did not tell you the commission they would make from the deal. |
It’s important to recognise these signs because:
- If your agreement was mis-sold, you may have been charged a higher interest rate than necessary.
- This could have resulted in you overpaying for your car by a significant amount.
- By recognising the signs, you can take action to claim car PCP compensation for the mis-selling.
Recognising these signs is crucial as it enables you to take action and potentially recover compensation for your Volkswagen, Ford, and Mercedes PCP claims. If you suspect that your MotoNovo PCP agreement was mis-sold, it’s recommended that you seek legal advice from a solicitor specialising in car finance mis-selling.
The Process of Making a MotoNovo PCP Claim
If you believe your MotoNovo PCP agreement was mis-sold, the first step is to gather all relevant documentation, including your finance agreement, any correspondence with MotoNovo, and any paperwork related to the car purchase.
Next, you can choose to submit a claim directly to MotoNovo or seek legal assistance. While it’s possible to handle the claim yourself, having a solicitor experienced in car finance mis-sold can significantly increase your chances of success.
That’s why we offer a free online PCP check to assess your potential claim. If we determine you have a case, we’ll guide you through the entire process, from gathering evidence to negotiating with MotoNovo for your Audi, BMW, or Land Rover PCP claim.
Potential Compensation Amounts
The amount of compensation you can claim depends on several factors, including the total amount you paid in interest, the length of the agreement, and the difference between the interest rate you paid and the interest rate you should have paid.
While it’s impossible to provide a specific figure without reviewing your case, it’s important to know that successful mis-sold PCP claims can result in significant compensation payouts.
Free, No-Obligation Online Check
We offer a free online check to assess your potential claim. This service allows you to determine if you might be eligible for compensation without any financial commitment.
By completing the online check, you can clearly understand your options and decide if you want to proceed with a MotoNovo PCP claim.
Why PCP and HP Claims is the Right Partner for You
Expertise in Car Finance Mis-selling
PCP and HP Claims have a proven track record in handling car finance mis-selling claims. Our team of experienced professionals specialises in this area, ensuring that your case receives the attention and expertise it deserves.
A Strong Record of Success
We have helped countless clients recover substantial compensation for mis-sold car finance agreements. Their success rate is a testament to our dedication and ability to achieve positive outcomes for our clients.
No-Win, No-Fee Guarantee
Understanding the financial implications of legal action, we offer a no-win, no-fee policy. It means you won’t face legal charges unless your claim is successful. You can confidently pursue your claim, knowing you won’t incur any financial risk.
Take Action Today
Don’t let your hard-earned money go to waste. If you suspect your MotoNovo PCP agreement was mis-sold, contact us today for a free, no-obligation assessment of your case. Our expert team is ready to help you reclaim what’s rightfully yours.
Call 01618504345 or visit our PCP and HP Claims form to start your claim.