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Claim Skoda Finance Compensation

If you have ever had car finance from Skoda Finance, you may be able to claim compensation if it contained undisclosed commission.

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If you have ever had a Škoda car finance agreement before January 28th 2021, you may be able to claim compensation in light of a new FCA announcement concerning hidden commissions.

Czech automotive brand Škoda has been manufacturing cars for over 100 years and is headquartered in Mladá Boleslav. According to the brand’s website, Škoda initially found expression in bicycles in the 1890s, followed by motorcycles and finally ventured into cars. By 2004, of a total of 3.7 million cars registered within the Czech Republic external link icon light blue, almost half were Škodas (1.8 million). According to data, A typical Škoda buyer is typically over 35 years old and the brand’s customers are more satisfied than consumers of any other automotive car brand external link icon light blue according to the January 2022 UK Customer Satisfaction Index (UKCSI).

What Are Škoda Compensation Claims?

Last week, the Financial Conduct Authority announced that they are initiating an investigation into car finance agreements in order to decide whether hidden commission payments were being made by brokers. According to Martin Lewis, such an investigation could lead to a PPI scale mis-selling scandal if the FCA finds evidence of such commissions. The role of the FCA is to determine whether or not discretionary commissions were made by brokers who were financially incentivised by brands to sell agreements with higher interest rates. The Financial Conduct Authority has been receiving customer complaints with regard to motor finance firms potentially unfairly rejecting their mis-selling claims. Complaints from car finance customers are centred around the belief that contracts were made more costly due to the dealership/broker earning a significant secret commission from the agreement.

Secret commissions in such deals have been prohibited since January 2021 however, the FCA has been contacted by more than 10,000 clients who bought their car on finance and who believe they have been overcharged due to discretionary commissions. More recently, The Financial Ombudsman Service has ruled in favour of two car finance customers on this particular matter which has lead to the Financial Conduct Authority’s own investigation.

SEAT S.A. ended the first half of 2023 with a solid growth of 28.1% external link icon light blue, after selling 261,400 vehicles and like many other car brands a large percentage will have been bought on finance. The SEAT brand offers customers two finance options in the form of PCP and Hire Purchase options to purchase their vehicles. For more than a decade, personal contract purchase agreements have been the most popular way to finance and purchase a car. PCP agreements were introduced over 10 years ago following multiple financial crises’ and have continued to increase in popularity over the years.

How Do I Know If I Have A Claim Against Škoda?

If you are currently wondering whether you may or may not have a future car finance claim against Škoda then keep reading. At the moment, the Financial Conduct Authority will only accept car finance complaints that meet certain criteria. In keeping with the deadline that banned hidden commissions, complaints need to be made only for car finance agreements sold before the 28th of January 2021. In addition to preceding this deadline the car sale must have been funded by a personal contract purchase or a hire purchase offering. Unlike a PCP agreement, a hire purchase agreement means the customer pays the value of the car in specific monthly instalments.

You cannot make a complaint If you bought your car on finance after the January 2021 deadline. Complaints will also not be considered from those who utilised a personal contract hire agreement in which the car was leased. For those who do not fit the above criteria, there is still potential that you may have an unaffordable claim concerning your car loan. In fact, if you can provide evidence that necessary affordability background checks were not carried out by your lender or dealership, you may be entitled to compensation.

How To Make A Complaint Against Škoda?

The FCA has put a temporary pause on firms responding to car finance client complaints. This current discontinuation started after 17th November 2023 and will end on the 25th September 2024 to allow the FCA to conduct their investigation. Whilst the investigation is underway, it might be a good idea to get your complaint sent to the relevant firm as there is often a limitation period to be observed with such claims, you may also have your claim dealt with sooner if you lodge your complaint before other masses of customers.

Here at Claims Bible we can help you kickstart your complaint in order to see if you may be eligible for a payout, click here to get going.

How much is a Škoda Car Finance Complaint Worth?

At present nobody knows how much potential compensation may be due to particular clients. In fact, not even the FCA currently knows the amount may be available to car finance customers in the future. The FCA has simply stated that it will “identify how best to make sure people who are owed compensation receive an appropriate settlement in an orderly, consistent and efficient way”.

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