If your ALPHERA Financial car finance agreement had a Discretionary Commission Arrangement, you could be owed compensation. Find out if you qualify today.

Who Are ALPHERA Financial Services?

ALPHERA Financial Services is a well-established player in the car finance industry that specialises in providing automotive finance solutions. They are a subsidiary of BMW Group Financial Services, part of the larger BMW Group. ALPHERA focuses on offering a wide range of financing and leasing options for both consumers and businesses in the automotive industry, ranging from personal contract purchase (PCP), hire purchase (HP), and lease purchase agreements. These agreements allow individuals to buy new or used cars, as well as vans and motorcycles, paying fixed monthly payments for a fixed duration. 

Apart from finance products, ALPHERA also provides insurance solutions that include GAP insurance, which pays the financial gap between the actual value and the insurer's payout in the event of total loss or theft; motor insurance, including personal Accident cover, and warranty protection for new and used vehicles. 

What Is a Mis-Sold Car Finance Claim?

A mis-sold car finance claim is a legal complaint made by customers who believe they were unfairly sold a finance arrangement - typically a PCP or Hire Purchase deal - without being given full or accurate information about how the deal was structured, especially around interest rates and commission.

One of the most common causes of mis-selling relates to Discretionary Commission Arrangements (DCAs). Under these arrangements, the car dealer or broker had the ability to adjust the interest rate charged to the customer, and in doing so, increase their own commission. Often, the customer was not told that this commission existed, or that the dealer had a financial incentive to raise the cost of borrowing.

This lack of transparency has led many customers to pay more than necessary, sometimes thousands of pounds extra over the course of the agreement. If you were not clearly informed about the commission involved or the dealer’s role in setting your interest rate, you may have been mis-sold and could be entitled to claim compensation.

Mis-selling can happen whether your finance was arranged through a dealership or a third-party broker. If you suspect that your car finance deal involved a DCA and was not properly explained, you have the right to challenge the arrangement and seek redress.

How Could ALPHERA Financial Services Have Mis-Sold My Car Finance Agreement?

If you had a PCP or Hire Purchase deal with ALPHERA Financial Services, there are several ways it could have been mis-sold — particularly if the arrangement involved a Discretionary Commission Arrangement (DCA).

One of the most common reasons for mis-selling is the use of a DCA. This gave the dealership or broker discretion to increase your interest rate in return for a higher commission — often without your knowledge. If ALPHERA or the broker failed to clearly disclose this commission structure, you may have paid more than necessary and could be entitled to claim compensation.

You may also have been told the interest rate was fixed, only to later discover it was variable, or that key details about how your rate was set were not explained properly. These are serious failings in duty of care and transparency.

How Much Can I Receive for an ALPHERA Financial Services PCP Claim?

The compensation you may be awarded depends on:

• How much extra you paid due to undisclosed commission or inflated interest

• The length and value of your agreement

• Any add-ons or penalties you were unfairly charged

• The date the arrangement was made and how long you’ve had the vehicle

While there’s no fixed payout, successful claims can lead to refunds worth hundreds or even thousands of pounds, depending on how the mis-selling affected you financially.

The Financial Conduct Authority (FCA) banned Discretionary Commission Arrangements in January 2021 and is currently reviewing how lenders handled past complaints. If you were not properly informed of the commission earned on your deal, you may still be eligible for redress.

How Can I Start My Car Finance Claim against ALPHERA Financial Services?

You do not need paperwork to begin a claim. At our sister website, claim.co.uk, we can locate all of your eligible finance agreements by simply entering a few personal details.

Once submitted, your case will be reviewed to check for signs of mis-selling – particularly where a discretionary commission arrangement may have led to inflated interest charges without proper disclosure.

If your case qualifies, it will be handled by an SRA-regulated law firm on a no win, no fee basis. You won’t pay anything upfront, and you can cancel within 14 days at no cost.