If you've recently taken out car finance and feel like you may have been mis-sold a loan, then it's important to know your rights. Many people don't realise they can take action if they've been mis-sold any kind of personal finance product, including car finance from Santander Finance. Find out how to get justice and compensation for your Santander Finance mis-sold PCP claim today.

Who Are Santander Finance?

Santander Finance is a subsidiary of Banco Santander, a Spanish multinational commercial bank, with operations in over 15 different countries. They offer banking, borrowing, and investment services to individuals, small businesses, and multinational corporations. One of the services they provide in the motor industry is vehicle finance. Vehicle finance involves funding the purchase or lease of a vehicle to customers or businesses. 

Santander Finance provides a range of vehicle finance products, including hire purchase, leasing, and personal contract purchases to customers and traders, enabling them to acquire the vehicles they need to manage their business operations. In the United Kingdom, Santander is a leading car finance provider, partnering with over 3,500 dealerships, covering both new and used cars.

What Is a Mis-Sold Car Finance Claim?

Buying a car could be the second most expensive purchase you would make after buying a house. So, it's understandable that people rely on financing options to afford car payments.

Unfortunately, some lenders and dealerships have been known to sell financial products in an unfair and mis-selling manner. This has led many innocent citizens facing financial difficulties, unaware of their legal rights, wondering—can I claim back the money?

When you purchase a car on finance, the salesperson may have earned a commission from Santander Finance. Prior to January 2021, this was standard business practice. However, if they did not disclose the commission, or the agreement was unsuitable or too expensive, you may have been mis-sold your finance agreement.

How Could Santander Finance Have Mis-Sold My Car Finance Agreement?

Car finance companies usually make their profits through commissions and interest rates. It is therefore possible that some finance companies, like Santander Finance, may not provide accurate information about the terms and conditions of the loans they offer. This can range from failing to disclose high-interest rates, penalties, administrative fees, and balloon payments that the car owner must bear. Such misrepresentations could create distress or financial harm to the car owner.

Misleading statements refer to any information that representatives of Santander Finance might provide that is untrue or misleading. This could include fine print, hidden charges, or additional terms, which can cause financial problems—for example, circumstances where the borrower has to pay back more than the agreed amount or forfeit their vehicle and have a bad credit score. Santander Finance undisclosed commissions can also be a basis to file a claim. In the UK, it is unlawful to intentionally hide information about the incentives salespeople or finance companies earn from sales.

Representatives of Santander Finance can lend amounts to certain individuals who clearly cannot afford the payments or were not aware of the harsh terms and conditions associated with the financing. If a company lends someone an amount that is unaffordable and unmanageable, this is a form of irresponsible lending.

As a car buyer, you may ask for different finance options to be presented to you. If Santander Finance agents don’t provide you with all the possible options with various terms and interest rates, then you might not have the full picture of what is available to you. This could impact your finances in the long run. If they can’t provide all the options, they should refer you to a third-party lender that can supply additional finance options.

If you believe that you have been a victim of any of the practices mentioned above, then you will need to file for compensation. Santander Finance car finance claims can be challenging to file and navigate without professional and legal help. A legal specialist experienced in mis-sold car finance can help you with the compensation process and may even increase your chances of achieving a positive outcome.

How Much Can I Receive for a Santander Finance PCP Claim?

To determine how much compensation you could receive for a Santander Finance mis-sold PCP claim, several factors will be considered. These factors include the cost of the car, the amount of the deposit, the length of the agreement, the interest rate and any additional fees or charges.

Typically, Santander Finance car finance compensation will be calculated by comparing the actual cost of the PCP agreement to the cost you would have paid if you were provided with accurate information about the deal. This difference will be the amount of compensation you could potentially receive.

Additionally, other factors that contribute to the compensation amount may include any additional financial difficulties that you have faced as a result of Santander Finance's mis-selling. 

How Can I Start My Car Finance Claim against Santander Finance?

Claiming Santander Finance mis-sold car finance can be a daunting task, especially if you are not familiar with the legal and regulatory frameworks that govern this area. While you can complain to your lender directly, we offer a service that can assist with the claiming process.

At our sister website, claim.co.uk, we have a dedicated panelof lawyers experienced in dealing with mis-sold car finance claims. We understand the complexities of this field and can navigate the process on your behalf.