Are You a Victim of a Mis-Selling PCP Deal?

Here’s What You Need to Know

Most car buyers in the UK are concerned about mis-sold PCP (Personal Contract Purchase) deals. A recent investigation by the government-backed FCA (Financial Conduct Authority) has revealed some discrepancies in car finance deals. Car finance is a popular methodology for buying new or used cars on loans. Two renowned motor finance options in the UK are Hire Purchase (HP) and Personal Contract Purchase (PCP). Customers buying cars via such deals have discovered possible mis-selling PCP agreements. If you are one of them, this blog will guide you on how to proceed.

Spotting Red Flags for Mis-Sold PCP 

Mis-sold car deals lead to financial constraints and legal complications. It is unlawful for lenders to mislead customers about the available financing options, thus forcing them to sign unfavourable deals.

Here are some points that customers may consider before signing a new PCP deal. These points may also be useful in identifying who signed up for a mis-sold PCP deal.

• Incomplete Information:

The finance providers must provide complete, detailed information about the PCP contract and its terms and conditions. They must educate the customers regarding all possible options suitable for them. This information may include the total cost of the car, mileage, other information about the car, depreciation, and any other charges or costs involved in the agreement. 

If the lender or the car dealer failed to do so, then there is a chance that you may have been mis-sold on your PCP car finance.

• Undisclosed Charges:

The customer should know the total costs and what he is paying the lender. All the costs should add up. There should not be any hidden costs, hidden commissions, or unjust interest rates involved in the PCP contract. If the interest rates were set high to attain personal benefits and the customer was unfamiliar, it might become a mis-sold deal.

• Inadequate Financial Feasibility:

The finance provider must run a complete background check on the customer to verify whether the customer can pay monthly instalments. Sometimes, inadequate financial verification leads to delayed or incomplete payments, which is not ideal for any party. Therefore, all car buyers should make sure that their lender has checked their financial capacity before making them sign a PCP deal. Otherwise, it is a mis-sold deal.

• Inappropriate Sales Tactics:

Sometimes, car dealers partner with specific financiers based on personal commissions to attract more customers, which might not always benefit the customer. They might pressure the customers to sign a specific deal. They might give little or no time to the customer to evaluate other options. As a result, the customer ends up signing for something they were unsure of. These inappropriate sales tactics used for individual benefits can become a cause of mis-sold car deals.

Steps to Take for PCP Car Finance Claims

Once you recognize the red flags, there is no excuse for not claiming it. If any customer has been mis-sold on the PCP deal, he can ask for PCP car finance claims. PCP claims are like any other refunds made on mis-selling of any expensive item. 

Regarding car finance, PCP claims have surged in the UK market. An investigation by the FCA declared that customers who bought cars from 2007 to January 2021 might have been mis-sold on the car finance deals. Thus, they may be eligible for a claim.

Now, what steps should a customer take to claim refunds?

• Firstly, check your PCP contract. It is essential to verify all contract details and identify anything suspicious. If there is a conflict between the verbal and written agreement, you might be eligible for a claim.
• Gather all relevant information regarding the contract. It is better to accumulate all documents, marketing materials, or paperwork to file your claim better.
• Then, go to a PCP claim expert or check your eligibility online using free PCP claim checkers. 
• Once you have checked your eligibility and gathered all the relevant stuff, your PCP claim expert will discuss the details with you.
• The entire process is free and will cost you nothing until you win your refund amount. That is why it is known as No-Win, No-Fee service.
• The process might take some time as legalities are involved.

Thousands of Britishers have started their PCP claim process on their mis-sold car deals. If you are also doubtful about your mis-selling PCP contract, you may register for a refund. It is better to be well-informed and educated about PCP contracts to avoid potential traps. Always conduct thorough research and understand the terms and conditions of your agreements before signing any deal. By doing so, you can refrain from mis-selling and protect your financial health.