Are you one of the many UK motorists who have financed their Ford car purchase through a car finance agreement? If so, you might be entitled to claim compensation due to the mis-selling because of hidden commissions. Understanding your rights and options is crucial in ensuring you receive the justice you deserve. Find out if you are eligible today.

What Are Ford Car Finance Claims?

Ford car finance claims refer to legal action taken by consumers who believe they were mis-sold financial products when financing a Ford vehicle. This mis-selling can occur when a finance provider fails to provide clear information in relation to the commission paid to the broker. The broker can also mislead customers concerning affordability and other vital parts of the loan agreement.

How Could My Ford Car Finance Have Been Mis-Sold?

The mis-selling of Ford car finance can occur in various ways, and understanding these practices is crucial for identifying if you've been a victim. The key type of mis-selling that the ClaimExperts.co.uk expert legal panel can assist with relates to undisclosed commission.

• Hidden Commission:  In their groundbreaking report, the Financial Conduct Authority (FCA) found that commission was paid on around 95% of car finance deals. Incredibly, they have found that around 40% of these car finance deals had hidden “discretionary commission arrangements” 
  
  This means lenders allowed brokers and car dealerships to increase the interest rate in order to increase their commission. Thousands of consumers could have overpaid their car finance repayments because of this. 
  
  The FCA banned this type of “discretionary commission arrangement” in 2021.
  
  While the hidden commission is the key part of the ClaimExperts.co.uk car finance claim, other common scenarios where Ford car finance might have been mis-sold include:
  
  
• Inadequate Affordability Assessment: If the finance provider did not adequately assess your financial situation before approving the finance agreement, it could lead to unaffordable repayments and potential financial hardship.
  
  
• Misrepresentation of Terms: You may have been provided with incomplete or misleading information regarding the terms and conditions of the finance agreement. This could include aspects such as interest rates, repayment schedules, or additional fees.
  
  
• Pressure Selling Tactics: If you felt pressured into agreeing to the finance agreement without fully understanding its terms or exploring alternative options, it could indicate mis-selling. Sales representatives should provide clear and transparent information, allowing customers to make informed decisions.
  
  
• Unsuitable Product Recommendations: The finance product recommended to you may not have been suitable for your needs or circumstances. For example, if you were sold a high-interest rate loan when you could have qualified for a lower rate, it could constitute mis-selling.
  
  
• Undisclosed Fees or Charges: Hidden fees or charges not disclosed at the time of the agreement could result in unexpected financial burdens for the consumer. It's essential to review the terms and conditions carefully to ensure full transparency.
  
  
• Failure to Explain Risks: If the risks associated with the finance product were not adequately explained to you, including potential implications for your credit rating or repossession of the vehicle, it could indicate mis-selling.

If you believe any of these situations apply to your Ford car finance agreement, and you believe the commission was hidden from you, you may have grounds for a mis-selling claim. 

While you can claim yourself via the Financial Ombudsman for free, seeking advice from a legal expert or claims management company experienced in financial mis-selling cases can help you assess your options and pursue the appropriate course of action. ClaimExperts.co.uk and our legal panel of experts are one of the companies that can help you regarding your Ford finance claim.

Who Is Eligible For Ford Mis-sold PCP Compensation?

Anyone who took out car finance between 2008-2021 could be eligible. This includes finance agreements taken out on cars, vans, motorbikes etc. 

The ClaimExperts.co.uk system can search for credit agreements between 2014-2021, allowing you to find any eligible car finance agreements between then. 

Our free-to-use eligibility tool is designed to scrutinise car finance agreements made from 2014 to 2021. According to the Financial Conduct Authority's (FCA) investigation, commissions were involved in 95% of the contracts they reviewed, with 40% employing the crucial Difference in Charges (DiC) model.

This implies that if you entered into a car finance agreement within the 2014-2021 timeframe, you might be entitled to reclaim thousands in interest payments. Determine your potential eligibility quickly and without cost by using our tool.

Can You Claim Against Ford For Mis-selling Car Finance? 

The direct answer to this question is No. You cannot claim mis-sold car finance compensation directly against Ford. You can claim compensation from the bank or lender that financed your car purchase. If you purchased a vehicle through PCP or HP finance after 2007 and the financing arrangement was misrepresented, you might be eligible to make a claim for mis-sold car financing.

If the salesperson failed to provide you with all the details regarding their commission, or failed to provide a thorough explanation of the terms of your contract and the interest rates, verify your affordability, you may be able to file a claim for mis-sold car finance compensation.

How Much Could My Ford  Mis-Sold Car Finance Claim Be Worth?

Currently, the FCA has not provided a key guideline in relation to compensation. However, it is expected that they will provide a framework similar to the PPI payouts. 

The Financial Ombudsman has ruled in favour of consumers in significant cases involving discretionary commissions, notably against Black Horse (a Lloyds Banking Group subsidiary) and Barclays Partner Finance. In these cases, customers were reimbursed the difference between the interest rate they were charged and the lowest rate available at the time.

We can consider this simplified example to understand the potential reimbursements: A customer financed a £7,619 car through Black Horse at a 5.5% interest rate, amounting to £2,096 over five years, despite a lower available rate of 2.49%. The Ombudsman mandated Black Horse to refund the £1,147 discrepancy in commission, plus interest.

FCA data indicates that the presence of discretionary commission models led to consumers overpaying by an average of £1,100 in interest on a typical £10,000 four-year car finance deal, implying larger loans could result in more substantial reimbursements.

How Can ClaimExperts.co.uk Help With My Ford Car Finance Claim?

ClaimExperts.co.uk specialises in assisting individuals with mis-sold car finance claims, offering a comprehensive service designed to support you from start to finish. 

In collaboration with law firms nationwide, our panel ensure your claim is managed by the legal expert best suited to your case.

Additionally, we offer complimentary access to our detailed guides, helping you understand your potential claim and assess your eligibility.

Our online eligibility checker enables you to swiftly evaluate the validity of your mis-sold car finance claim, offering immediate preliminary advice at no charge.

See if you are eligible to claim today.

The Small Print

This claim is regulated by the FCA. You do not need to use a claims management company to make a car finance claim. You have the right to complain directly to the lender and use the Financial Ombudsman Service to seek redress for free.

Many legal claims, including this one, are offered on a No-Win, No-Fee basis to consumers. This means that if your claim is unsuccessful, you will not be responsible for any costs to the solicitor.

It's important to note that there may be a cancellation fee if you cancel your claim with a panel member after the cooling-off period which is 14 days. 

The No Win, No Fee Success Fee charged by the solicitor is based on which expert panel member we refer you to. The maximum the legal panel will charge as a success fee is 36% inc. VAT.