Did you purchase a Cupra through Hendy Group and later find yourself paying more than expected in car finance? Many consumers who bought vehicles from Hendy Group on PCP or HP finance may be eligible for compensation. While Hendy Group no longer stocks Cupra, many consumers purchased Cupra vehicles through Hendy Group or similar dealer groups during the period of 6 April 2007 to 1 November 2024.
How Does Car Finance Work When Buying a Cupra Through Hendy Group?
When you buy a Cupra from Hendy Group on PCP (Personal Contract Purchase) or HP (Hire Purchase), it’s important to understand the mechanics behind your finance agreement. In many cases, dealers like Hendy Group operate under what is known as a [discretionary commission](https://mlj.org.uk/glossary/discretionary-commission-arrangement) arrangement (DCA). This means that when you sign up for car finance through Hendy Group, they may receive an additional undisclosed commission from the lender, which can lead to higher interest rates and fees.
The DCA system was widely used by many dealerships, including Hendy Group, across South and South West regions. As a result, thousands of consumers who took out PCP or HP finance on their Cupras through these dealers may have been charged more than necessary due to the hidden commissions that benefitted the dealer but not the customer.
Finding Your Lender
If you bought your Cupra from Hendy Group and are unsure which lender provided your car finance, it’s crucial to locate this information. The lender is responsible for handling any complaints related to your finance agreement, not Hendy Group as the dealership. To find out who your lender is, carefully review your finance documentation, including the credit agreement and schedule of charges.
The lender's name will typically be listed prominently in these documents. If you cannot locate this information or need further assistance identifying your lender, contact Hendy Group directly for clarification. However, once you have identified your lender, you should address any issues related to your car finance directly with them.
If you believe that your Cupra finance agreement was impacted by a discretionary commission arrangement (DCA) or other unfair practices, the first step is to contact your lender directly. You do not need to use the services of a [claims management company](https://mlj.org.uk/guides/complaints-about-claims-management-companies); most complaints can be handled independently and at no cost.
When making a complaint, provide detailed information about the issues you are facing and any evidence you have regarding higher-than-expected costs or hidden commissions. Remember, Hendy Group is the dealer and should not be involved in resolving your finance agreement disputes. You can complain directly to your lender for free and seek fair compensation based on FCA estimates of £700 average per affected agreement out of an estimated 14 million agreements worth a total of £8.2 billion.
Sources and references
- Financial Conduct Authority (FCA): "Car finance: what you need to know" [Link]
- Hendy Group official website [Link]