Moneybarn Car Claims

Buying a new car is one of the biggest purchases that anyone can make, especially with the vast array of different makes, models and types on the market today. The average cost for a small car, for example like Ford Fiesta is £15,450, whereas the Average SUV is £25,626 (source: NimbleFins)

Why Use Car Finance?

Many people use car finance as a way to purchase a car, spreading the cost over a longer period of time, by paying a small amount per month.

These finance options can seem like a good option, but in some cases, customers are paying pay overall on their car finance packages than they should be. One such car finance firm that has come into the spotlight recently is Moneybarn.

Who are Moneybarn?

Moneybarn is a car credit company, owned by doorstep lender Provident Financial, that offers customers finance for Car, Motorbike and Vans. Moneybarn state that they are “experts in approving customers for finance” for people who may have otherwise struggled to get approved for a car loan or have a poor credit score.

It’s parent company Provident Financial, has been in the spotlight recently as it is looking to introduce a scheme to limit compensation paid to customers who were mis-sold loans, in a move similar to gurantor lender, Amigo Loans.

Has Moneybarn swerved into the Wrong Lane?

In the Wrong Lane:

In February 2020, Moneybarn was in the headlines after being fined £33 million as a result of the Financial Conduct Authority found Moneybarn had not treated customers fairly when they fell behind on repayments.

Over 6,000 customers were given car finance refunds after the FCA found that the “lender didn’t sufficiently communicate what would happen if they defaulted on payments before taking out an agreement”.

The exact figure that each customer received is unknown, but an equal share of the pay-out is around £5,000 for each individual.

How much does Car Finance with Moneybarn cost?

Moneybarn’s APR is 31.9%. As an example of this APR in action: If you borrowed £12,000 over 55 months, with monthly payments of £393.20, you would repay a total of: £21,232.80.

Buying a Car should be a Positive Experience

What If I found that I cannot afford my Moneybarn loan?

If you have been affected by your car finance loan from Moneybarn, we can help you claim the compensation you deserve.

What does the mis-selling of PCP look like?

Here are some examples of circumstances where you might have been mis-sold a car finance package:

  • The salesperson didn’t properly explain the finance deal to you
    Did you understand completely what you were agreeing to, that you would not own at the car at the end of the PCP contract, in addition to understanding and being fully aware of the terms and conditions.
  • You were told it was the best deal, when it wasn’t.
    With PCPs, you will pay more in interest than you would another loan, loan for example a hire-purchase contract. The FCA
  • You were not presented with a range of options
  • It wasn’t made clear who is responsible financially for repairs to the vehicle
  • The dealership didn’t outline who actually owns the vehicle (in some cases, this is a third-party hire purchase business, not the car dealership)
  • The salesperson failed to outline the interest charges properly
  • You were offered an add-on that you didn’t need.
    Some dealers offer additional products (such as insurance) to customers, that are often of no real benefit, and are only sold to customers to generate additional profit for the dealership.
How big a problem is the mis-selling of PCPs?

How big a problem is the mis-selling of PCPs?

The Financial Conduct Authority (FCA) conducted mystery shopping trials of the industry. The results were alarming, including the following facts and statistics:

£300 million
The total amount customers could be over-paying in interest charges per year due to mis-sold PCP Schemes

The average amount a single customer could be over-paying in interest charges on a typical £10,000 mis-sold PCP scheme over four years

The estimated number of customers affected by mis-sold PCP schemes 

£58 billion
The total amount of car loans taken on by consumers in 2016

The difference between the average and highest commission a broker could earn through different commission models – incentivising brokers to charge higher interest rates for higher commission

Source: Autocar and Petrol Prices

Have you experienced a mis-sold PCP?

If any of the above statements apply to your experience with your Personal Contract Plan (PCP), you could be eligible to claim compensation. Start your claim today or get in touch with the experienced team who will guide you through the process. We are here to help.

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