The Financial Conduct Authority (FCA) has taken regulatory action against car dealerships and lenders for their role in mis-selling Personal Contract Purchase (PCP) agreements, affecting an estimated 14 million agreements worth £8.2 billion between 6 April 2007 and 1 November 2024. This includes many individuals who purchased BMW vehicles through Vertu Motors, a UK-wide dealership network.
How Does BMW Finance Work at Vertu Motors?
When purchasing a BMW from Vertu Motors, customers may opt for finance options like PCP or
Hire Purchase (HP). In these arrangements, the dealer acts as an intermediary between the customer and the lender. However, it's important to understand that while Vertu Motors stocks BMW vehicles and facilitates the finance process, they are not the lenders themselves. The actual lender providing your finance agreement will be named in the documentation you receive at the point of purchase.
A key aspect of these agreements is the role of discretionary commission arrangements (DCAs), which allow dealers like Vertu Motors to earn additional income on top of their standard commission from the sale of a BMW vehicle. This can sometimes lead to higher costs for consumers, who may be unaware of these extra fees and how they impact their finance agreement.
Finding Your Lender
If you purchased a BMW through Vertu Motors and are unsure which lender provided your car finance, you should locate your original finance documentation. Look for any letters or documents sent by the lender that were not from Vertu Motors but instead contained information about monthly payments, interest rates, and other key terms of your agreement. These documents will clearly state the name of the lender you should contact if you have concerns about your finance agreement.
If you believe that your BMW car finance agreement through Vertu Motors has been mis-sold or is unfair, you can
[complain directly](https://mlj.org.uk/guides/how-to-complain-to-your-lender) to your lender at no cost. You do not need a
claims management company; the FCA estimates that such companies charge an average of £700 per claim (FCA estimate). Instead, contact your lender using the details found in your finance documents and explain why you are dissatisfied with your agreement.
Sources and references
- Financial Conduct Authority: "Regulatory action against car dealerships and lenders for mis-selling PCP agreements" (6 April 2007 to 1 November 2024)
- Financial Conduct Authority estimates: £8.2 billion total, 14 million agreements affected, £700 average claim fees