Car loans

Is Britain’s car finance market in danger of a PPI style mis-selling scandal?

Is Britain's car finance market in danger of a PPI mis-selling scandal?

How did you buy your car? If you entered into a finance agreement to help afford the model of your dreams, experts are warning that you could be a victim of the nation’s next potential mis-selling scandal.

Failing to explain the terms and conditions of complicated loan products and the true cost of borrowing could mean thousands of British drivers have been mis-sold finance products. It’s similar to the way payment protection insurance (PPI) was scandalously mis-sold.

Those are the warnings from analysts who allege thousands of drivers on PCP (personal contract purchase) deals may have been sold the loans without having the terms properly explained to them. The fear is they may be unable to keep up payments in an economic slump.

The Financial Conduct Authority (FCA) is now investigating the industry. It fears less well-off customers may be paying too much for credit. But its findings won’t be reported until next year. In the meantime, what measures can drivers take to see if they might be affected? Continue reading