A Helpful Guide to Understanding Hire Purchase (HP) Car Finance Mis-Selling
Hire Purchase (HP) finance is one of the most common ways to buy a car, and for many people, it feels like the simplest option, fixed monthly payments that eventually lead to ownership. But over the last few years, lots of drivers have started to question whether everything was explained properly when they took their agreement.
If you’ve ever looked back at your paperwork and thought something didn’t quite add up, you’re not alone. This page brings together everything you might want to know about HP finance mis-selling and how Mis-Sold Expert can help you understand your agreement with clarity and confidence.
What a Hire Purchase Agreement Really Is
HP finance is designed to be straightforward:
- you pay a deposit (sometimes not required),
- make regular monthly payments,
- and once the final payment is made, the car becomes yours.
It’s simple in theory, but the details, interest charges, fees, suitability checks and commission, should always be explained clearly so you know exactly what you’re signing up for.
Where HP Finance Mis-Selling Can Happen
Most people don’t realise something might be wrong until much later. Mis-selling doesn’t always come from one big issue, sometimes it’s a collection of small things that weren’t properly explained.
Common concerns include:
- Interest rates that weren’t explained clearly
- Costs that ended up higher than expected
- Feeling pushed towards HP instead of alternatives like PCP
- A lack of proper affordability checks
- Commission that wasn’t mentioned at all
- The total amount repayable not being made clear
If any of this feels familiar, Mis-Sold Expert can look over your HP documents with you to help make sense of what happened.
Why Commission Matters More Than Many People Think
A lot of customers are surprised to learn that dealerships and brokers often received commission for arranging car finance. In some cases, they could even increase the interest rate to earn more commission, something known as a discretionary commission arrangement.
The FCA has raised serious concerns about how this was handled, and courts have made it clear that customers should have been told about commission in a way that was honest and transparent.
If you weren’t told about commission, or you feel the deal didn’t make sense in hindsight, Mis-Sold Expert can help you understand whether this may have affected your agreement.
Signs Your HP Agreement Might Be Worth Reviewing
People often come to Mis-Sold Expert when they:
- Didn’t fully understand how interest was calculated
- Weren’t shown alternative finance options
- Struggled with affordability from the start
- Noticed that the final cost was much higher than expected
- Later discovered commission they never knew about
- Felt pressured to sign on the day
None of these automatically mean your agreement was mis-sold, but they can be good reasons to have Mis-Sold Expert take another look.
Your Options If Something Doesn’t Feel Right
You have several routes if you’re worried about how your HP agreement was sold:
- Raise a complaint with your lender or dealership
- Escalate it to the Financial Ombudsman Service if you’re not satisfied with the response
- Work with a regulated claims management company for support
If you’d prefer not to do it all alone, Mis-Sold Expert can guide you through the review process step-by-step, always in a clear and transparent way.
How Mis-Sold Expert Supports You
Mis-Sold Expert focuses on making things simple and clear. When you ask us to review your HP agreement, you can expect:
- A careful look at your finance paperwork
- Straightforward explanations about interest, fees and commission
- Guidance on what your options might be
- Open, honest communication from start to finish
There are no assumptions made about your case and no guaranteed outcome, just clear, supportive guidance.
Understanding What Redress Might Cover
If an HP agreement was mis-sold, redress can sometimes relate to things like:
- Overpaid interest
- Costs or fees that weren’t properly explained
- Issues linked to unfair relationships under consumer credit rules
This varies from person to person, and it’s never possible to predict an outcome. What Mis-Sold Expert can do is help you understand whether your agreement raises any concerns.
What Happens When You Ask Mis-Sold Expert to Review Your HP Agreement
Most people find the review process straightforward:
You share your agreement details
Mis-Sold Expert reviews the information carefully
You get clear, jargon-free feedback about what we find
You decide what you’d like to do next
If you’ve had more than one car on finance, we can look at each agreement individually.
Recent Developments You Should Know About
Recent court decisions have highlighted the importance of fairness and transparency in car finance, particularly around commission. These cases help customers understand their rights, but every agreement is different, and outcomes can vary.
Mis-Sold Expert keeps up to date with these developments so we can explain how they may relate to your situation, always without giving legal advice or promising results.
HP Mis-Selling FAQs
Can Mis-Sold Expert check an active agreement? Yes, reviews can be carried out on both active and completed agreements.
What if I can’t find my paperwork? Mis-Sold Expert can help you locate the information you need through your lender or other details.
Will this affect my credit score? Looking into how your agreement was sold should not impact your credit rating.
Does this apply to used cars? Yes, HP mis-selling can affect both new and used vehicles.
Here When You Need Clear, Reassuring Guidance
If you want to understand whether your HP car finance agreement was sold fairly, and you’d like support from a team that explains things simply and honestly, Mis-Sold Expert is here to help you every step of the way.
You can claim without using a claims management company; you can go to your finance provider and then to FOS, for free. Additionally, the FCA is introducing a free consumer redress scheme.
