PCP Undisclosed Interest Claim

Merrylegs55

Hi All

Looking for info to help me decide on my options.

A couple of years ago my details were provided to a legal company with a view to them pursuing a compensation claim for undisclosed interest on PCP agreements. As for thousands of other people, this has been ongoing for some time.

Periodically, the legal company requests me to sign a new Letter of Authority as the lender has requested a newly signed one is retrieved due to them only having six months from my original signing for the LOA to be valid. I am requested to click on a link to sign.

I'm wondering if I am legally bound to continue with this legal company and sign the LOA or should I wait and see what, if anything, the car finance companies offer direct.

I would very much appreciate some help.

Thank you.

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Nebulous2

There's a sub-forum here which deals with finance claims and your post would be better moved to there.

Reclaim car finance — MoneySavingExpert Forum

My understanding is that if you have signed up to a claims company, which generally goes against advice offered here, you can withdraw and go it alone, but you are likely to have to pay them a fee for work done to date.

TadleyBaggie

Was undisclosed "interest" a thing, I suspect not. Do you mean undisclosed "commission"?

Goudy

There are now three areas to make a claim rather then just the one that was the Discretionary Commission Arrangement (DCA) that was originally banded about.

It now includes Contractual Ties and Unfairly High Commission along with the above, so if you signed up early you would have likely only signed up for the DCA part and now they want you to sign up for the other two.

As for whether a claims company will get you more money, that's a hard one to assess. The FCA have pushed for what is in essence a flatish calculation for compensation. They obviously need to balance things between customers and lenders. But if this flatish calculation becomes seen as the "norm", courts might start using that as a guideline for payouts taken to court.

Now depending on the arrangement with the legal companies, these legal companies will take the court costs (if they win) but will almost certainly take a percentage of the payout (between 15 and 30% on most). So you might end up with the same payout as everyone else, but have to hand over a percentage of that to the legal company.

Then again, the legal company might win more compensation and they you might get more than those on the flatish calculation.