Motorpoint, a nationwide car dealership, has been known to offer Citroen vehicles to consumers on PCP or HP finance agreements. During the period from 6 April 2007 to 1 November 2024, approximately 14 million car finance agreements were affected by unfair practices in discretionary commission arrangements (DCAs), leading to an estimated £8.2 billion being overcharged and an average loss of £700 per consumer (FCA estimate). Many consumers who purchased Citroen vehicles through Motorpoint or similar dealer groups during this period may be eligible for compensation.
Citroen Finance at Motorpoint
When buying a Citroen vehicle from Motorpoint, the purchase is often facilitated through PCP (
Personal Contract Purchase) or HP (
Hire Purchase) finance agreements. These agreements are typically set up in partnership with various lenders and involve Motorpoint acting as an intermediary between the consumer and the lender. The role of Motorpoint extends to handling the paperwork and providing information about the financing options available, but it is crucial to understand that Motorpoint acts solely as a dealer and not as the lender itself. Consumers who bought a Citroen through Motorpoint should be aware that they need to identify the actual finance company named in their agreement.
A significant aspect of these agreements involves discretionary commission arrangements (DCAs), where dealers like Motorpoint receive additional payments from lenders for steering customers towards specific financing options. These DCAs can lead to higher interest rates and other hidden fees, resulting in a financial burden on consumers who were unaware of the arrangement.
Finding Your Lender
To determine which lender provided the finance agreement for your Citroen purchased through Motorpoint, you should carefully review the documents you received at the time of purchase. These documents typically include a finance agreement or loan contract that clearly states the name and contact information of the lending institution. It is important to identify this lender rather than contacting Motorpoint directly, as they are not responsible for handling complaints related to your financing arrangement.
In some cases, the lender's details might be less obvious, especially if you received multiple documents from different parties involved in the transaction. If you need assistance identifying the correct lender, consider reaching out to a legal or financial advisor who can help clarify the terms of your agreement and provide guidance on next steps.
If you believe that you were overcharged due to unfair practices in discretionary commission arrangements (DCAs) when purchasing your Citroen through Motorpoint, you have the right to
complain directly to your lender. This process is free of charge and does not require the involvement of a
claims management company or solicitor.
To initiate a complaint, contact your lender using the details provided in your finance agreement. Provide them with all relevant documentation and any evidence that supports your claim. Be clear about what you believe was unfair and how it has affected you financially. It is also important to keep records of all correspondence during this process for future reference.
Remember, you can complain directly to your lender for free without the need for a claims management company or solicitor. They are required by law to handle your complaint fairly and respond within strict deadlines. If you feel that your complaint has not been resolved satisfactorily, you have the option to escalate it to the Financial Ombudsman Service.
Sources and references
- FCA estimate: 14 million agreements affected (FCA estimate)
- Total overcharged amount: £8.2 billion (FCA estimate)
- Average loss per consumer: £700 (FCA estimate)