The Financial Conduct Authority (FCA) recently discovered national widespread evidence of this practice, which it claims could be leading towards consumer abuse through inadequate disclosure on all types of vehicle deals – including those involving cars!
As a result, the FCA is now investigating the PCP (Personal Contract Purchase) market as a whole. If you’re concerned that you may have been mis-sold PCP finance for your car, then there are certain things you can do in order to make a claim. Here, we outline what PCP claims are, and how you can go about making one.
Mis-sold PCP – What You Should Know
You may have been mis-sold if you were given poor advice about your financing options or the various commissions being charged within your PCP agreement.
If PCP was mis-sold to you, it is important that you take action. You may be able to get a refund on all of the money you’ve paid towards your PCP agreement, including any interest and charges.
To make a PCP car finance claim, start by gathering together all of the paperwork relating to your PCP agreement. This should include your original finance agreement, as well as any correspondence you’ve had with the dealership or lender. Once you have all of this information to hand, you can begin the process of making a claim.
PCP Claims Process & Compensation
It is estimated that the average amount of PCP compensation a customer could get from their lender when they’re victims of a shady lending practice could range anywhere between £3,000 and as high as 3X that price depending on how many cars you financed. However, every case is different and it’s important that you work with a legal expert to build a strong case against the finance company that may have misled you in relation to financial advice.
There are a few different ways in which you can make a PCP claim. The first is to approach your lender directly and request a refund of the total amount you’ve paid under the PCP agreement. If they refuse, then you can take your case to the Financial Ombudsman Service (FOS). The FOS is a free service that helps customers to resolve disputes with financial services firms. If they find it in your favour, they have the power to order the lender to refund you the money you’re owed.
You can also choose to take legal action against your lender through the courts and with Next Gen Solicitors, but often the case can be settled without going to court. Since we are a no-win, no-fee legal team, you will only pay should your claim be successful and you receive compensation.
If your loan had an interest rate set on it which turned out not too far off-market rates but still somehow higher by around 30% then consider lodging an appeal immediately – those extra few percentage points really add up over time; especially if those terms were offered during a bait.
Am I Eligible To Make A PCP Car Finance Claim?
Most likely yes, around 92% of customers who purchased their vehicle through a PCP may be eligible to make a PCP claim as the car financier did not include the commissions earned by the salesperson or dealership, but we would need one of our experts to take a look at your finance agreement before we would know for sure.
This goes against the Consumer Credit Act of 1974 as the finance company must fully explain the terms and conditions, fees, and payments throughout the finance agreement you signed for.
It’s the company’s responsibility you purchased your vehicle from to show that they did all of these things adequately. If they can’t prove it, then yes! You’ll be entitled to compensation.
It may sound like a small thing but there are some big consequences in being mis-sold finance products and not knowing about them beforehand – or worse yet getting sold something with hidden costs which turn out later down the line when paying off your loan (and discovers he owes more than expected).
For more information and legal advice regarding PCP car finance claims, feel free to contact our legal team at Next Gen Solicitors today. We would be more than happy to discuss your case with you and help you to find out if you are eligible for compensation.