PCP Mis-Selling – Personal Contract Purchase (PCP) has gained popularity over the time period. Many individuals prefer buying cars on finance with PCP or Hire Purchase (HP). They think that car finance is the best way to own a car. In the UK, many people have purchased cars on PCP finance between 2007 and 2021. However, some have realised that they might have been mis-sold on their car deals.
The Financial Conduct Authority (FCA) is a government-backed financial institution, and it has received thousands of complaints regarding PCP mis-selling. The authority claims that many people have lodged complaints against their sellers and car dealers about their PCP contracts. The customers think that they were unfairly charged high fees, interest rates or hidden commissions on their car deals. As a result, the authority banned the practice of Discretionary Commission Arrangements (DCAs) in January 2021. Before the date, the seller, broker, or car dealer was allowed to charge commissions on each deal, but this might have caused financial problems for the customers. The investigation is still ongoing. Customers are checking their eligibility for the mis-sold PCP claims. So, let us discover the basics of PCP contracts and how they can be mis-sold.
What is PCP Mis-Selling?
A PCP mis-selling happens when the seller misinforms the customer about the PCP contract or omits important details that can be used to make an informed decision. It can happen when the customer is not provided with enough details to make a purchase or the customer failed to fully understand the deal.
Here are some ways in which a PCP contract can be mis-sold:
- Lack of transparency about terms:
Customers were not aware of the terms and conditions of the PCP contract and the amount of money they had to pay at the end of the contract.
- Failure to explain mileage limits:
The seller did not inform the customer about the mileage limits or other car restrictions, which can result in hefty penalties.
- Hidden or unexpected fees:
Sometimes, customers are unaware of administration and early exit fees, which may surprise them later on.
- Inadequate financial suitability check:
If the dealer did not run a complete financial affordability check on the customer, he may have mis-sold the PCP deal to him.
- Failure to explain all end-of-term options:
Sometimes, the dealer or the seller did not inform the customer about the three end-of-term options in a PCP contract. If the customer is not familiar with them, he may be mis-sold on the PCP deal.
How to Identify a Mis-Sold PCP Contract?
Customers can easily identify PCP mis-selling, if they were not told about the terms and conditions of the PCP contract at the beginning of the journey. For example, if you purchased an Audi on a PCP finance and later found out about the final balloon payment, mileage restrictions, wear and tear costs and additional costs, you can make Audi PCP claims.
Furthermore, customers can also seek Audi car finance claims if they think they were unfairly charged high fees on the PCP deal. All sellers should provide a complete breakdown of the total costs of the contract. This helps the customer identify the division of the costs that they have paid. If they pay more on hidden commissions or interest rates, then that could be considered a mis-sold car deal. Likewise, the seller should also offer the best financial product suitable for the customer’s needs. If the seller pressures the customer to sign a specific car financing contract, then the customer may make a mis-selling claim.
What Steps to Take for PCP Refunds?
After the great PCP scandal in the UK, many lenders are now accepting PCP complaints from their customers regarding mis-sold deals. If you purchased any car on finance from any lender before 2021, you can make a PCP claim. If you are not sure about the process, you can hire the best PCP claim experts in the UK to find out your eligibility for a refund. There are many PCP claim solicitors in the UK, who are providing great help to the people in need, such as the claim experts at Drive Back Financial.
The PCP claim process is simple, yet it is time-consuming. It would be very difficult for customers to update themselves on the latest news about the PCP refunds and follow up on the procedures. Therefore, hiring the best PCP claim experts in the town could help with saving time and effort. There is no harm in hiring or consulting one of these top-rated experts. They will help you identify your mis-selling issue, gather relevant details and supporting documents for you and proceed with the matter with their great expertise. There are no charges or hidden fees in hiring PCP claim experts in the UK. Although they may charge some amount later on, until then nothing is hidden from the customer. So, be sure to get help from one of the top claim experts online.
