Financial Mis-Selling can occur in a variety of situations, but the main focus of recent disputes in this area have focused on lenders enticing consumers onto contracts that carry extremely high levels of commission payments within them – a fact that they fail to notify their customers of – which denies the customer the choice of establishing whether the product they are getting represents value for money to them.
Two specific areas where Hattons Solicitors represent clients in this area are:-
Mrs Plevin had taken out a bank loan. She had also taken a PPI policy out with the loan to offer her cover. She was not told that a secret commission was paid by the lender to the broker of over 70% of the cost of the product. Mrs Plevin successfully sued the lender on the basis that the presence of a secret commission made the relationship unfair between the two parties, entitling the Court to award her some of the commission payments made back.
Following that case, a clear line of cases has established that customers who were sold PPI, wrongly or not, are entitled to also make such a claim, should secret commissions also have been paid in relation to the product they were sold.
PCP deals are a way of allowing customers to finance car purchases, which operate by the customer making an initial payment, monthly payments usually over 3 or 4 years, followed by either returning the vehicle or paying a large balloon payment to keep the vehicle.
In many cases the PCP deals offered to consumers contained secret commissions which significantly increased the price paid for the car.
In addition to this, research suggests that in many cases, car dealerships were offering customers PCP deals without making the necessary affordability checks, or without treating all of their customers fairly.
As with Plevin claims, the failure of the car dealerships on behalf of the lenders to conduct their affairs properly with regard to these deals can allow the Court to determine that the relationship between the lender and the customer was unfair, again allowing a full or partial refund to be made to the customer.
Here at Hattons we have a team of experts who would be happy to assist you in pursuing a claim for compensation on either of the above scenarios.
Should you wish to speak to our team, please contact Louise Oakes or Andy Lewis.
If you would like to find out more about Financial Mis-selling call our expert legal team on 01744 744400, fill out our contact form below or contact our key person: