Mercedes PCP Claims

Quick Guide:

• Purchasing a Mercedes car on PCP finance after 1st April 2014 could qualify you to seek compensation for hidden commission mis-selling.

• If commissions to the Mercedes dealership or salesperson were not transparently explained during the purchase, there might be an opportunity to halt the loan and seek a refund for fees and interest.

• Legal assistance, often available on a no win no fee basis, can be sought to pursue your Mercedes PCP Claim.

Why should I question purchasing a Mercedes through a PCP finance agreement?

Many customers investing in new or used luxury vehicles often opt for a Personal Contract Purchase (PCP) financial arrangement. There’s a possibility that Mercedes PCP finance agreements might have been misrepresented by dealerships or their sales teams. If, during the agreement process, commissions weren’t transparently disclosed to the customer, this could potentially lead to an unintentional increase in the PCP agreement’s cost. This heightened cost, sometimes termed as a hidden commission, could catch buyers off guard.

The Financial Conduct Authority (FCA), a government-backed regulatory body, has recently taken action against car finance deals where dealers and their sales teams could earn higher commissions if customers were enrolled in pricier PCP financial plans. Often, buyers remained unaware of the commissions received by the sales team, resulting in unfair overpayments by customers.

What constitutes a secret or hidden commission?

This occurs when a car dealer sells you a finance package for a car without disclosing that they receive a commission, or the extent of that commission. While most customers anticipate the salesperson or dealership making money from the car sale, they might not be aware that a commission from the finance company for the PCP finance agreement is also involved. Consequently, the customer could potentially pay more for the Mercedes than necessary.

Due to the significant risk of a conflict of interest between the customer and the car dealer – where the dealer might recommend finance products based on the commission amount rather than the customer’s best interests – full transparency is vital for customer protection. It is imperative that the exact amount of this commission is disclosed to the customer.

If the payment and amount of commission have not been adequately explained, the customer has grounds to claim compensation for mis-sold PCP car finance.

Mercedes PCP Claim – FAQs

How can I determine if I have a Claim?

Indicators of potential car finance mis-selling include:

  • The car salesperson promoting their finance as the ‘best option’ instead of encouraging you to explore other finance options or providing a variety of alternatives.
  • Lack of disclosure regarding any commission received by the dealership or salesperson from the finance company for your PCP agreement.
  • Absence of information regarding the exact amount of commission the dealership and/or the salesperson were receiving from the finance company.

What amount of compensation can I claim for mis-sold Mercedes PCP car finance?

The compensation amount for you Mercedes PCP Claim varies depending on several factors, including the terms of the finance agreement, the interest rates applied, the financed amount, and the duration since the PCP finance agreement was signed. However, you could be entitled to thousands of pounds in compensation.

If you believe that you have been mis-sold car finance, reach out to our mis-selling team, and we can discuss your claim and its potential worth.

How long will my Mercedes PCP claim take?

The duration varies for each claim. If the dealership and/or the finance company acknowledge responsibility for the alleged PCP mis-selling and agree to settle the case, a compensation claim can be resolved within a few months. However, if the allegations are disputed, the claim might be referred to the Financial Ombudsman Service (FOS), where the resolution could take anywhere between 12 to 18 months.

If initiating court proceedings is deemed necessary, the process could again take between 12 and 18 months.

What are the costs associated with making a mis-sold car finance claim?

There are no costs involved in making an enquiry. Once our team has assessed your potential case and if we deem it suitable, we will enter into a no-win-no-fee agreement. This means that if the case is unsuccessful, we will not charge for the time spent on it.

Common Mercedes Benz Models

-> A-Class Hatchback
-> B-Class Hatchback
-> EQE Saloon
-> EQS Saloon
-> A-Class Saloon
-> C-Class Saloon
-> E-Class Saloon
-> S-Class Saloon
-> C-Class Estate
-> E-Class Estate
-> GLC Coupé
-> GLE
-> G-Class
-> C-Class Coupé
-> E-Class Coupé
-> AMG GT Coupé
-> C-Class Cabriolet
-> E-Class Cabriolet
-> AMG GT Roadster
-> V-Class