Personal Contract Purchase (PCP) finance agreements are one of the most popular ways to purchase a vehicle in the UK. However, many individuals have found themselves victims of mis-sold PCP agreements, resulting in financial strain and confusion. Below, we answer some of the most frequently asked questions regarding mis-sold PCP claims to help you better understand your rights and the steps you can take.
What is a PCP Agreement?
A Personal Contract Purchase (PCP) agreement is a type of car finance arrangement where you make fixed monthly payments for a set period. At the end of the term, you typically have three options:
- Pay a balloon payment to own the vehicle.
- Return the car with no further obligations.
- Trade the car in for a new PCP agreement.
While PCP agreements can be a flexible way to access a vehicle, some agreements may be mis-sold due to misleading information or undisclosed terms.
What Constitutes a Mis-sold PCP Agreement?
A PCP agreement may be considered mis-sold if:
- The lender or dealer failed to fully explain the terms and conditions.
- You were not informed about the full cost of the finance, including interest rates and balloon payments.
- Your financial situation was not adequately assessed to determine affordability.
- Commission arrangements between the lender and dealer were not disclosed, which could lead to unfair practices.
- You were misled about the depreciation value or guaranteed minimum future value (GMFV) of the car.
Who Can Make a Claim for a Mis-sold PCP Agreement?
If you entered into a PCP agreement without being given clear and transparent information, you may be eligible to make a claim. This includes individuals who:
- Were pressured into signing a PCP contract without adequate time to review the terms.
- Discovered hidden fees or charges that were not disclosed upfront.
- Found out that the deal was not suitable for their financial circumstances.
How Do I Make a Mis-sold PCP Claim?
To make a claim, follow these steps:
- Gather Evidence: Collect all relevant documentation, including the PCP contract, payment records, and any correspondence with the dealer or lender.
- Contact the Dealer or Lender: Raise your concerns directly with the provider to seek resolution.
- File a Formal Complaint: If the dealer or lender fails to address your concerns, escalate the matter to the Financial Ombudsman Service (FOS).
What Lenders Can I Claim PCP claims from in the UK?
- Black Horse Ltd
- Blue Motor Finance Ltd
- BMW Financial Services (GB) Ltd
- CA Auto Finance UK Ltd
- Close Brothers Ltd
- Clydesdale Financial Services Ltd
- FCE Bank PLC
- FirstRand Bank Ltd (London Branch)
- Hyundai Capital UK Ltd
- Mercedes-Benz Financial Services UK Ltd
- Moneybarn No. 1 Ltd
- NIIB Group Ltd
- PSA Finance UK Ltd
- RCI Financial Services Ltd
- Santander Consumer (UK) PLC
- Startline Motor Finance Ltd
- Toyota Financial Services (UK) PLC
- Vauxhall Finance PLC
- Volkswagen Financial Services (UK) Ltd
How Can National Claims Help?
At National Claims, we specialise in connecting you with experienced solicitors who are well-versed in handling mis-sold PCP claims. Our dedicated team ensures you receive expert guidance every step of the way, making the claims process as seamless as possible.
What Compensation Can I Expect?
Compensation for a mis-sold PCP agreement may include:
- A refund of any overpaid amounts.
- Cancellation of outstanding debts related to the agreement.
- Financial redress for any distress or inconvenience caused.
Mis-sold Vehicle Finance Claims Checker
Our mis-sold car finance claims calculator below estimates the level of compensation you may be able to reclaim for a mis-sold car finance agreement.
Add the value of your vehicle, the length of your agreement, and the interest rate you paid to the calculator below. Then, compare this against a rate that you may have been offered if you weren’t mis-sold.
Disclaimer : The Mis-sold Car Finance Claims calculation is illustrative, and under no circumstances should it be used or relied upon in the pursuit of a claim. If you need more help and clear understanding Contact National Claims.
Are There Time Limits for Making a Claim?
Yes, typically, you have six years from the date of the agreement or three years from when you became aware of the issue to make a claim. It’s crucial to act promptly to ensure your case is considered.
An FCA investigation revealed that the average customer on a £10,000 PCP agreement over four years has been overcharged by more than £1,100*
Conclusion
Mis-sold PCP agreements can leave consumers facing unnecessary financial burdens. If you suspect your PCP deal was mis-sold, don’t hesitate to take action. National Claims can put you in touch with experienced solicitors who will guide you through the claims process, helping you achieve the compensation you deserve.
Contact National Claims today, and we will put you in touch with an expert solicitor who can guide you through the claims process.📞 Call us now free 0800 029 3849 or 📩 Submit an online enquiry to speak to our team. Your safety and well-being matter, and we’re here to help.
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