Why Opt for Capita Finance?
Are you interested in purchasing a new car on finance? If so, Capita Finance Services is the best for buying cars on finance. The company offers personalised car finance deals suitable to all customer’s needs. Whether it be a Personal Contract Purchase (PCP) agreement or a Hire Purchase (HP) contract, you can make an easy purchase on the best possible deal suitable for your needs.
The company also offers refunds to customers who think they have been mis-sold on their car finance deal. Recently, the Financial Conduct Authority (FCA) has found a series of mis-sold car contracts for cars purchased on finance before 2021. The authority is investigating the matter but has thereby declared that all cars purchased on finance from certain financial service providers can be mis-sold. Therefore, if you have bought a car on PCP finance from Mercedes-Benz Financial Services or Capita Finance Services can apply for a PCP claim.
If you are not sure about your contract and claim status, read the details below.
What’s the Best Car Finance Option?
Usually, there are two different types of car finance contracts. PCP is a popular choice among the Britishers. A PCP contract offers multiple end-of-term options that are not typically available at the end of the HP contract. These options are
- Return
- Retain
- Exchange
For example, if you purchased an Audi on a PCP contract from any financial service provider, you will have three options at the end of the contractual term. You can return the car without making any additional payments. You can get a new car in exchange for your current car by signing a new PCP deal. Or, you can pay the optional final balloon payment at the end of the contract to become the owner of the vehicle. This optional final payment is also known as a Guaranteed Minimum Future Value (GMFV). This is a huge lump sum amount only payable at the end of the contract.
Whereas, in an HP agreement you do not have to make any additional payments at the end of the contract. It involves an initial depository along with a fixed monthly payment plan, similar to that of a PCP deal.
That is why most people prefer PCP contracts over HP agreements.
How is a PCP Contract Mis-Sold?
Unlike other agreements, car finance agreements are complex in nature. It is not possible for everyone to understand the terms and conditions of the finance agreement, thus they sign the deal without consulting other professionals.
Sometimes, they are not aware of the balloon payment, interest rates, commissions charged on the contract and other restrictions and conditions. As a result, they become a victim of PCP mis-selling.
It is the utmost responsibility of the broker, car dealer and lender to inform all customers about the pros and cons of signing the PCP contract. The FCA PCP mis-selling states that the customers who purchased cars on PCP finance before 2021 were charged excessively high interest rates along with hidden commissions as part of the Discretionary Commission Arrangements (DCAs). This caused immense pressure and stress on the customers and now in 2021, they have banned this practice to facilitate the customers. They are currently running an investigation on the mis-sold cases and identifying ways to compensate the distressed customers. This will be helpful for all the customers and the financial service providers to handle everything smoothly and professionally.
Furthermore, you should be aware of some other reasons for a mis-sold PCP contract:
- The lender or the car dealer failed to inform you about the car’s condition, mileage restrictions and other limitations.
- They did not inform you about the final payment options, balloon payment and interest rates that were charged on the PCP contract.
- They did not run a complete financial check on you to offer the best possible car finance deal.
- They did not provide a complete breakdown of the total costs of the contract and the commissions made on this deal.
- They pressured you to sign the deal as quickly as possible.
If you think you have been mis-sold on your car finance deal, you can always seek a refund.
How to Make a Claim Against Capita Finance Services?
It is very important for all to understand the complications of signing a mis-sold car finance deal. It may cause you financial stress, and you might not be able to pay your monthly dues. This might affect your credit score, and you may face extra problems as well. So, if you want to identify whether you were mis-sold on your PCP contract or not, you should immediately seek help from recognised PCP claims solicitors.
Our team of PCP and HP claims experts at Revive Solutions is well-recognised for offering the best advice and handling all complaints professionally. We have made a dedicated PCP complaint form on our website to help our online customers. You only need to add some details, our experts will check your eligibility for the refund and then proceed with your case.
If you need more information regarding our claim process, you may visit our website or contact our team for additional support.