The car finance scandal regarding missold PCP contracts could have negative consequences for both drivers and lenders, with this ongoing issue leaving thousands of motorists anticipating financial redress.
Car dealers are currently holding billions of pounds in reserve for potential compensation expenses, pending decisions from the Financial Conduct Authority and the Supreme Court regarding the process for compensating drivers. The Supreme Court is set to decide the entitlement of individuals who have taken out car finance loans to receive compensation for insufficient disclosure of commission payment terms.
According to Stuart Masson, editorial director at The Car Expert, the Supreme Court’s ruling is a highly notable legal decision in recent financial history. He proposed that the automotive industry was keen on shaping public opinion, as evidenced by several major lenders reserving large sums in preparation for a decision.
According to him, the car industry heavily relies on the car finance sector. It can be said that the existence of the car industry is intertwined with that of car finance. Therefore, both this case and the ongoing investigation into the sector hold immense significance.
WHAT’S NEXT FOR THIS CAR FINANCE SCANDAL?
The outcome of this case could involve tens of billions of pounds, and regardless of the victor, it is probable that consumers will suffer consequences in the end.
There is widespread anticipation that in the event of a Supreme Court ruling in favour of consumers, the Financial Conduct Authority will proceed with an industry-wide compensation scheme. The FCA has stated that a mass redress scheme will be outlined within six weeks of the Supreme Court’s ruling.
According to the experts, even if consumers receive payouts, it cannot be ignored that lenders will increase the cost of future finance deals in order to make up for their losses.
COULD YOU BE A VICTIM OF MIS-SOLD PCP? FIND OUT IF YOU’RE ELIGIBLE FOR COMPENSATION TODAY.
By providing your details on our form, Friends Legal can promptly assess your eligibility for compensation and take the necessary steps toward seeking redress from dealerships and lenders on your behalf. We aim to streamline this process for our clients, and we are dedicated to supporting you through this ordeal and getting the compensation you rightly deserve.
Friend Legal operate on a no win no fee basis, so if you aren’t eligible for compensation then you won’t be charged. Start your claim today!
