Regulatory action taken by the Financial Conduct Authority (FCA) has highlighted significant issues within the car finance industry, affecting millions of consumers. Many individuals who purchased Hyundai vehicles through Inchcape or similar dealer groups on Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements may be eligible to claim compensation due to improper commission practices.
Hyundai Finance at Inchcape
When purchasing a Hyundai vehicle from Inchcape, the process typically involves selecting a finance agreement such as PCP or HP. These arrangements are facilitated by a dealership like Inchcape but involve a separate lender providing the financing. A key aspect of these deals is the
discretionary commission arrangement (DCA), where lenders pay commissions to dealers based on their discretion and the specific terms negotiated during the sale. This practice can lead to higher interest rates for consumers unknowingly, as dealers may favour arrangements that earn them more in commissions.
Finding Your Lender
To identify which lender provided the finance for your Hyundai vehicle purchased through Inchcape, you need to review your finance agreement documents carefully. These documents should clearly state the name of the lending institution involved. If you no longer have access to these documents, you can contact Inchape directly to request a copy or check with any financial institutions listed on your bank statements that might be associated with the car purchase.
If you believe you have been affected by improper commission practices when purchasing a Hyundai through Inchcape, it is important to address this issue directly with the lender, not the dealership. The FCA estimates that 14 million agreements were potentially affected between 6 April 2007 and 1 November 2024, resulting in an average claim of £700 per consumer and a total amount of £8.2 billion. Consumers should gather all relevant documentation and submit their complaint directly to the lender for free. You do not need a
claims management company to handle your case; you can
complain directly to your lender without incurring additional costs.
Sources and references
- Financial Conduct Authority (FCA) estimates: 14 million agreements, £8.2 billion total, £700 average claim
- Inchcape operates UK-wide for Hyundai sales
- Discretionary commission arrangement (DCA) information provided by FCA