Mis-sold PCP deals have caused a ripple effect in the UK’s financial market. Customers, lenders, dealers, and all financial authorities are under the influence of the recent mis-sold PCP deals updates. The FCA (Financial Conduct Authority) has called out the names of some top car financiers in the UK. FCA claims that cars purchased on PCP or HP deals before January 2021 may be subject to DCA (Discretionary Commission Arrangements). The authority has banned DCAs on car financing after January 2021. However, cars sold on PCP finance between 2007 and 2021 might be mis-sold.
Financial experts and consumer advocates are spreading awareness about mis-sold PCP deals. Individuals have started investigating their PCP contracts and plan to get a refund on their mis-sold car deals. Therefore, the claim for mis-sold PCP car finance is a popular topic in the UK. Let’s see what is new in the process.
What’s All About PCP Mis-Sold?
A Personal Contract Purchase (PCP) is a car financing option available to UK car buyers. People who are interested in buying cars on finance with low monthly instalments greatly appreciate PCP deals.
A PCP deal is loaded with a lot of customer-oriented benefits. For instance, at the end of the term, a customer can permanently own the car, return the vehicle, or exchange it for a new model.
However, there are some implications for each option as well. Usually, a PCP deal consists of an initial depository, followed by monthly instalments and a final balloon payment. A final balloon payment is a lump sum amount, also known as Guaranteed Minimum Future Value (GMFV). A
GMFV is based on the car’s estimated value at the end of the term.
If a person wants to own a car at the end of the contractual period, he has to pay the final amount. Otherwise, he has the option to return the vehicle without any extra payments.
If he wants to upgrade his car, he can sign a new PCP deal that will adjust the cost of the new model. The only additional cost that a customer might have to pay other than a balloon payment is the cost of the vehicle’s wear and tear. Most customers are informed about these additional expenses. However, some remain uninformed as a result of a mis-sold car finance deal.
A mis-sold PCP agreement is one where the customer is misled by the dealer or the lender about the terms and conditions of the contract. There are some other reasons for mis-selling as well, which are as follows:
- The customer did not know about mileage restrictions, wear and tear expenses
- The customer had no idea about discretionary commissions
- The customer was charged higher interest rates
- The customer was pressured to sign the PCP deal
- The customer was not given suitable financing options
- The customer had no financial support to pay the instalments
- The customer was not informed of the car’s condition
- There was a disparity between written and verbal agreements
All of these points may lead to a PCP mis-sold deal.
How to Claim for a Mis-Sold Car Finance
All mis-sold PCP contract holders can claim a refund. FCA is investigating the case, and there is a high chance that millions of people might be mis-sold on their PCP contracts. PCP claim experts have initiated some simple claim processes to assist the consumer market. According to experts, the PCP claim process is simple and easy yet time-taking.
PCP claim experts suggest that anyone can claim for a mis-sold PCP. The experts have initiated multiple awareness campaigns to help the public check their claim eligibility status. For instance, if you purchased an Audi on a PCP contract in 2010, you can apply for an eligibility check. If your stance is valid, you can apply for an Audi PCP claim.
Similarly, if anyone got a BMW on PCP deal from Black Horse and thinks he might have been mis-sold on the interest rates or hidden charges, he can check his claim status online.
Claim for Mis-Sold PCP Deals with Revive Solutions
Revive Solutions is adept at handling mis-sold PCP deals in the UK. Individuals looking for a PCP claims expert may contact our team at Revive to escalate their claim process. Our experts are trained to tackle each step with integrity and professionalism. We have made the claim process easy. Our PCP claim process is as follows.
- Book a free consultation with our PCP claim experts
- Collect all materials regarding the PCP agreement
- Contact the lenders, dealers, or, FOS
- Make a claim
- Handle legal proceedings
- Win the refund
Our entire PCP claim process is free of cost. However, in the end, once you win the claim, we may charge some fee. In case, you do not win a refund, you will not have to pay anything to us. Also note, the claim process takes time. It is a legal procedure and everything needs to be carried out with clarity and evidence. Our claim experts are trained for it.