Black Horse Finance is the UK’s leading car finance provider, providing Personal Contract Purchase agreements at affordable rates. The company aims to facilitate car financing deals for its customers. It offers two types of vehicle finance options to Britishers: PCP and Hire Purchase (HP) finance. The car finance agreements aim to promote flexible payment plans while not compromising on driving the dream cars like Audi, BMW, and Mercedes.
In case of mis-selling, the company also offers its customers a refund or compensation amounts. So, if anyone purchased a car on finance from Black Horse Financial, they can start a claim for compensation to get their refund immediately. For instance, if you bought a BMW on PCP finance, you can make a BMW PCP finance claim compensation in the UK.
Understanding Car Finance Options
PCP and HP finance are the two-vehicle finance options in the UK. In PCP finance, the customer pays an initial amount and then makes monthly payments for two to three years. The time frame of the PCP contract is decided beforehand according to the customer’s financial status. The customer can choose from three options once all monthly payments are paid off:
- Return the Car
- Retain the Car
- Exchange the Car
If the customer opts to pay the final balloon payment, the remaining amount, also known as the Guaranteed Minimum Future Value (GMFV), can retain the car. The balloon payment is optional. The final lump sum amount is paid off to own the vehicle permanently.
If the customer does not intend to own the car, he can return it without paying the final balloon payment. In this case, he will only pay for the damages done to the vehicle, if any. However, according to the third option, if he wishes to exchange the car for a new model or brand, he can do so by signing a new PCP deal. This is how a PCP contract works.
In HP finance, the customer pays an initial amount followed by fixed monthly instalments. These monthly instalments are higher in an HP contract than in a PCP one. After paying the monthly amounts, the customer becomes the vehicle owner, paying off all the costs. Hence, HP car finance has no end-of-term options. These are two prevalent car finance options in the UK. Most people buy cars with Black Horse Finance on PCP deals. So, if they think they have been mis-sold on a car finance deal, they can claim a Black Horse PCP refund.
Examining PCP Mis-Selling Reasons
There are several reasons for a PCP car claim back. Recently, the Financial Conduct Authority (FCA) has found a series of mis-selling claims against many lenders, including Black Horse Finance. According to finance experts, many lenders might have charged higher interest rates, hidden fees, or commissions to gain more profits. This resulted in financial stress for the customers. The authority has banned the practice of Discretionary Commission Arrangements (DCAs) in 2021. But before 2021, those who purchased cars on vehicle finance between 2007 and 2021 can claim back mis-sold car finance.
Furthermore, customers can claim a PCP refund if the lender or the broker did not inform them about the PCP agreement properly. They did not update the customer on the details of choosing the best financial products suitable for their needs. They did not provide a complete breakdown of the total costs of a PCP agreement. Not only that, but they did not educate them about the car’s condition, mileage and other restrictions. Customers can also ask for a refund if the salesperson pressures them to sign a PCP deal that does not meet their financial needs.
These are some common reasons for mis-selling. In any case, the customer can make a free PCP claim. If their claim is valid, the lender will accept the request and pay back the compensation.
Claiming for Mis-Sold Car Finance Deals
If you bought a car on finance from Black Horse before 2021, you can make a Black Horse PCP refund. Our PCP claims expert team at Revive Solutions is working tirelessly on PCP and HP mis-selling claims. Our claim process is simple, easy, and effective. We have developed an online PCP claim check on our website to facilitate our customers. If you think you owe a refund, you can enter your details over there and check your eligibility status for free. If you are found eligible, our expert team will contact you.
We will gather all relevant details about your PCP contract, re-check your mis-selling issue, discover discrepancies between the terms of the agreement and then contact your lender to settle the issue. Our team is trained and dedicated to tackling all sorts of mis-selling issues. We will handle your process professionally and swiftly. So, do not hesitate to make a PCP claim with our PCP claim experts at Revive Solutions.