Black Horse Car Finance Claims

Introduction to Blackhorse PCP Claims

If you got a car finance agreement with Blackhorse before January 28, 2021, you might be able to get some money back. This is because of hidden commissions in Personal Contract Purchase (PCP) deals.

Key Facts: Blackhorse Finance Claims

• Eligible deals: PCP or Hire Purchase before January 28, 2021
• Average compensation: around £1,500 per agreement
• 40% of finance contracts across all lenders had hidden commission arrangements
• Claims apply to both current and past car finance deals

Black Horse Car Finance Claims: The Lowdown

PCP deals became really popular in the UK car market. They seemed like a good way to get a new car without spending too much upfront. But there was something many people didn’t know about, which has led to the current situation with Black Horse PCP claims.

Here’s how PCP agreements usually work:

1. You pay a deposit
2. You make monthly payments for a set time (usually 2-4 years)
3. At the end, you can either buy the car outright, hand it back, or start a new deal

Sounds simple, right? But here’s the tricky part. The dealerships and finance companies weren’t always clear about how they were making money from these deals. This lack of honesty is why we have Blackhorse PCP claims now. Many customers didn’t know that the interest rates on their agreements could be changed to increase dealer profits.

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A Modern Day Finance Scandal

The main problem is Discretionary Commission Arrangements (you may hear the term DCA claim). This means car dealers could change the interest rate on your loan to earn more money for themselves. The higher the interest rate, the more commission they got.

This secret system made many people pay more than they should have for their car finance. It’s not just a Blackhorse problem – lots of finance companies did it. But Blackhorse, being a big company, is facing a lot of claims. These hidden commissions often made customers pay hundreds or even thousands of pounds more over the life of their agreement.

Regulatory Response and FCA Investigation

The Financial Conduct Authority (FCA), which oversees financial rules in the UK are very concerned about Discretionary Commission Payments. In January 2021, they stopped these sneaky commission deals by making them illegal. This changed things a lot for the car finance industry and allowed people to make claims.

FCA Actions on Car Finance Sector

Here’s what the FCA did:

• Ban discretionary commission models
• Investigate car finance sector
• Instruct companies to set aside compensation funds
• Considered the need for a formal compensation scheme (update due in May 2025).

This action by the FCA shall enable people to claim back money they’d overpaid because of these hidden commissions. The FCA’s decision doesn’t automatically mean everyone gets compensation, but it does give a strong reason for claims.

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Identifying Mis-sold PCP Agreements

Think you might have been mis-sold a PCP deal by Blackhorse? Here are some signs to look out for:

• The dealer said their finance deal was the best without showing you other options
• They didn’t tell you they were getting a commission
• You weren’t told that the interest rate could be changed
• The finance wasn’t explained clearly, or you felt rushed into signing
• You weren’t given a clear breakdown of the total cost of the finance
• The dealer didn’t check if you could afford the finance

If any of these sound familiar, you might have a claim. Remember, you don’t need to have had problems paying your finance to make a claim. It’s about how the deal was sold to you and whether all the important information was shared.

The Claims Process

The process is as follows:

1. Gather all your paperwork about the car finance deal, including the original agreement and any letters from Blackhorse
2. Contact Blackhorse directly to complain, explaining why you think you were mis-sold the PCP agreement
3. If you’re not happy with their response, you can take your case to the Financial Ombudsman Service
4. Be ready to provide details about how the finance was sold to you and any information that wasn’t shared
5. Keep records of all communications about your claim

You can do this yourself, or you can use a claims management company to help you. Companies like ourselves, Allegiant Finance Services.

Potential Compensation and Outcomes

So how much could you get back? Well, it’s different for everyone, but here are some numbers to give you an idea:

The exact amount depends on things like how much your car cost, how long your agreement was, and how much extra interest you paid because of the hidden commission. Each case is different, and there’s no guarantee of compensation. But many people have successfully gotten back significant amounts of money.

Taking Action on Black Horse Finance Claims

If you’ve had a PCP or Hire Purchase agreement with Blackhorse before January 28, 2021, it’s worth checking if you can claim. You could recover money you should never have paid ouy. The process might seem hard, but with the right information and help, you can do it successfully.

Remember, there’s no guarantee you’ll get compensation, but many people are finding they were overcharged. It doesn’t cost anything to check, so why not look into it? You could get money back, and it helps make sure you’re treated fairly in future financial deals.

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