BMW PCP Claims

Quick Guide:

• You may be eligible to claim compensation for hidden commission mis-selling if you bought a BMW vehicle on PCP finance after 1st April 2014.

• If commissions were not clearly explained before the PCP for the BMW was sold, legal assistance may be able to stop the loan and claim a refund for the interest and fees.

• Legal professionals often work on a no win no fee basis, meaning you pay nothing if your BMW PCP Claim is unsuccessful.

What are the issues with purchasing a BMW on a PCP finance agreement?

Many individuals purchasing new or second-hand BMWs often agree to a Personal Contract Purchase (PCP) finance plan. This arrangement typically involves the salesperson earning a significant commission from the finance company for securing the PCP agreement, a detail frequently not disclosed to the buyer. As a result, the commission effectively raises the vehicle’s price for the customer without their knowledge.

The Financial Conduct Authority (FCA), a regulatory body backed by the government, has recently prohibited car finance agreements that allow car dealerships and their sales staff to gain higher commissions by steering customers towards more costly PCP plans. Such practices were conducted often without the consumer being aware of the commission earned by the sales team, which in turn, led to an inflated cost of the purchase.

This practice, referred to as a ‘secret’ or ‘hidden commission,’ has resulted in customers paying more than necessary for their new or used BMW. If this situation seems familiar to you, you might have the right to make a BMW PCP Claim for a refund of the interest and fees paid as compensation.

What is a secret/hidden commission?

A secret or hidden commission occurs when a car dealer arranges a finance package for the purchase, but fails to inform you about receiving a commission or the size of that commission from the arrangement. While most customers understand that salespersons or dealerships earn from selling the car, they might not be aware that an additional commission is made from the finance company for the PCP BMW finance agreement. This could result in the customer paying more than necessary for their vehicle.

Due to the potential conflict of interest, where a dealer might recommend finance products based on the commission, they receive rather than what’s best for the customer, it’s crucial for the exact commission amount to be transparently disclosed to the buyer for their protection.

If this commission payment and its amount were not clearly explained during the sale of a BMW on a PCP finance agreement, then the customer has grounds to seek compensation for the mis-sold PCP car finance.

Frequently Asked Questions:

How can I determine if I’ve been mis-sold car finance for my BMW?

Indicators of potential car finance mis-selling include:

• The car salesperson endorsing their finance as the ‘optimal choice’ without encouraging comparison shopping or presenting alternative options.

• Lack of disclosure regarding any commission received from the finance company for signing up to the agreement.

• Absence of information regarding the exact amount of commission from the finance company.

What amount of compensation am I entitled to for mis-sold car finance?

The compensation you could claim varies based on factors such as the terms of the finance agreement, the interest rates applied, the financed amount, and the duration since the PCP finance agreement was initiated. Nevertheless, you might be eligible for thousands of pounds in compensation.

If you suspect that you’ve been mis-sold car finance, reach out to our mis-selling team. We can assess your claim and provide insights into its potential value.

How long does it typically take to process my mis-sold BMW car finance claim?

The timeline varies for each claim. If the dealership and/or finance company acknowledges the alleged PCP mis-selling and commits to rectifying the situation, a compensation claim might be resolved within a few months. However, if the allegations are contested, the claim might be referred to the Financial Ombudsman Service (FOS), extending the resolution timeline to approximately 12 to 18 months. Opting for court proceedings, if deemed necessary, could also prolong the process, typically spanning between 12 and 18 months.

What are the expenses involved in making a mis-sold car finance claim?

There are no costs associated with making an enquiry. Once our team has evaluated your potential case and if we deem it appropriate, we will proceed with a no-win-no-fee agreement. This means that if the case is unsuccessful, we will not charge for the time spent on it.

What distinguishes us in mis-sold car finance cases?

Mis-selling claims involving ‘secret/hidden commission’ car finance can be exceptionally intricate. Our team of specialist lawyers boasts extensive experience in handling a diverse array of financial mis-selling cases.

Our professionals possess a deep understanding of the regulatory landscape and the numerous financial institutions implicated in such cases, including the FCA and FOS. Furthermore, they have substantial experience in pursuing cases in court when required, ensuring that clients receive the compensation they rightfully deserve.

Common BMW Models
-> 1 Series
-> 2 Series Coupé
-> 2 Series Gran Coupé
-> 2 Series Active Tourer
-> 3 Series Saloon
-> 3 Series Touring
-> 4 Series Coupé
-> 4 Series Convertible
-> 4 Series Gran Coupé
-> 5 Series Saloon
->  5 Series Touring
-> X1
-> X2
-> X3
-> X4
-> X5
-> X6
-> Z4 Roadster
-> 3 Series Saloon M
-> 4 Series Coupé M
-> X5 M
-> X6 M