PCP Claims and Compensation in the UK
With the car finance options in the UK, PCP (Personal Contract Purchase) plans have gained popularity amongst the citizens. However, they are unaware of the risks involved with PCP plans, resulting in PCP claims. Evidently, due to the flexible and monthly instalments of the car, you do not own the vehicle. Most buyers think they have full rights to the car after making a PCP agreement with the seller.
Understanding a PCP Plan
If you are unsure about PCP plans in the UK, keep your research uptight about car loans and choose the one that you find affordable. When individuals start with car finance schemes, they are often misled with information about the vehicle. This is known as mis-sold car finance. Usually, the commission is hidden in those agreements, or the buyer is not informed about the vehicle repairs. Anything hidden from the buyer regarding the vehicle will commit a mis-sold car finance on the seller’s part.
What are PCP Claims?
To identify several PCP claims, it is essential to know that PCP claims are made against the PCP plans only. If the buyer has an issue in the PCP agreement, they can pursue a PCP claim against the seller. An ambiguous PCP agreement will lead to problems related to the affordability of the vehicle with rising interest rates, hidden commissions on the car, or making vehicle repair claims.
An Unaffordable PCP Deal
When a vehicle is sold to anyone, it may have a middleman to work on the business transaction. Third-party involvement can lead to higher customer commissions. However, the hidden commissions are powered by high interest rates, compromising the buyer’s affordability. Some customers are also pressured to purchase PCP insurance, which is unnecessary money to put in.
Role of FCA in PCP Claims
The Financial Conduct Authority (FCA) has found several mis-selling issues in the UK. Addressing the PCP problems, it was found that most PCP claims are related to higher interest rates set by the dealers. However, they have ruled out the discretion of interest rates the dealers decide in the agreement. The investigation at FCA also determined that PCP insurance is useless for the buyer, yet they felt obligated to buy from the dealer.
How to make a Car Finance Claim?
If you were sold a car, it does not mean you must have mis-sold the vehicle. Before making a PCP claim, you must confirm whether you find a problem in the PCP agreement or another issue. To find out if you were mis-sold in the PCP plan, you can determine the value of the vehicle, the cost you have paid for it, and whether your credit history ensured future payments to the seller.
Details You Will Need for Your PCP Claim
If you have decided to make your PCP claims valid, you will need to gather evidence against your claim. Most importantly, a copy of the PCP car finance agreement should be presented to the solicitor. The agreement will have all the details about how the vehicle was sold to the buyer. Every payment record should be shared with your solicitor.
Compensation for PCP Claims
The amount of compensation cannot be decided unless a mis-sold vehicle is identified. Moreover, mis-selling compensations are identified through PCP agreements and payments already made by the individual. However, a higher interest rate set by the dealer will also be compensated for the PCP claim.
PCP Claims Guaranteed
Your claim is secured with a PCP claims solicitor. They will work on your case by analysing the PCP agreement, ensuring you have made the proper claim. In case a different and robust PCP claim can be made, their advice shall be taken by the individual. For the best PCP compensation, you must find a reputable PCP claims management company that will connect you with their experts to expedite your claim.