Car aficionados are fond of driving a Mercedes. It is a well-established brand known for its high-quality vehicles and advanced engineering materials. It symbolises luxury and status. Everyone dreams of owning a Mercedes in the UK. Therefore, car financing companies have made it easy to get a Mercedes on PCP or HP finance.
Along with the ease, some lenders might have charged higher interest rates to gain more profits on each PCP and HP deal. This has caused great concern in the UK’s financial market. Individuals who purchased a Mercedes on PCP or HP finance are making a Mercedes PCP claim. The Financial Conduct Authority (FCA) is investigating the car financing deals that were signed between 2007 and 2021. If you purchased a Mercedes on PCP finance during that time, you might still be eligible for a PCP claim. But before that, let’s clear out some things about car financing.
All About Car Financing:
Car financing deals such as Personal Contract Purchase (PCP) and Hire Purchase (HP) are the most demanded by the Britishers. Any individual who wants to purchase his favourite car, a BMW, an Audi, or a Land Rover on a finance agreement opts from these two contracts.
A PCP contract and an HP contract comprise an initial amount, followed by regular monthly payments. These monthly payments are spread over two to five years of the payment plan. After completing all the instalments, the buyer becomes the owner of his car in an HP contract. Whereas in a PCP deal, the ownership is not transferred immediately.
A PCP deal offers three options. If you are the buyer of a Mercedes, you can choose to own it, exchange it for a new car, such as a Land Rover, or return the vehicle without making any additional payment. These end-of-term options are called retain, renew, and return, respectively.
In a PCP car finance agreement, you will have to make an additional payment at the end to own the vehicle. This lump sum amount is commonly referred to as a balloon payment, residual amount, or a Guaranteed Minimum Future Value (GMFV). Once you clear this payment, you will become the owner of the vehicle. If you do not want to own it, you may choose the other two options: return and exchange.
Sometimes, buyers are not familiar with these end-of-term payments. This lack of information may be counted as mis-selling. If this happens, you may claim mis-sold car finance.
How is a PCP Finance Mis-Sold?
Mis-selling can happen in different ways. In simple words, it happens when an expensive item is mis-sold by the seller to the buyer. The buyer can then claim for a refund. In the case of a Mercedes PCP finance, you can make a Mercedes PCP claim.
PCP car claims are a trending topic in the UK’s financial market. As per the report of the Financial Conduct Authority (FCA), many lenders mis-sold PCP contracts to their customers before 2021. They charged higher hidden commissions on PCP deals. These discretionary commission arrangements were not banned at that time. Some lenders set up a higher interest rate to increase their profit gains. They did not provide any details to their customers. The customers were uninformed of the hidden commissions and total cost breakdown. Thus, they may now claim for a refund.
There are other reasons for mis-selling as well. These factors also account for a mis-sold PCP deal.
- You were not detailed about the PCP contract.
- You were pressured by the sales team to sign the contract immediately.
- They did not run a complete financial check on you before making you sign the deal.
- They did not offer the best financial product suitable for your needs.
- You were not informed about the car’s condition and other mileage restrictions.
- You were not aware of the balloon payment or the final lump sum.
- They did not provide a complete breakdown of total costs or hidden fees.
You can make a PCP claim if you think you have been mis-sold on your PCP deal. Our PCP claim experts at Revive Solutions will handle your claim process swiftly.
How to Claim for Mis-Sold Car Finance?
It does not matter which car you own. Whether it be a BMW, a Mercedes, or a Land Rover, you can ask for compensation on a mis-sold car finance deal. If you purchased a Land Rover on a PCP finance, you may apply for a Land Rover PCP claim.
The PCP claim process is simple and easy. It takes time to proceed with your claim. First, you should check your eligibility for the claim. You can do so by using the free claim-checking tool on our Revive Solutions website. Then, our experts will get in touch with you. You should gather all relevant details, including the PCP or the HP contract, receipt, e-mails, and all written documents. These documents will help strengthen your claim application.
Afterward, our experts will handle the entire process. You do not have to pay anything until and unless you win your compensation. So, consult us today for a free PCP claim check.