Mis-selling in PCP car finance occurs when a lender fails to provide clear and transparent information about the terms and conditions of the agreement, leading a consumer to make an uninformed decision. It could involve misrepresenting the total cost of the agreement, hiding additional fees, or pressuring the consumer into signing. According to the Financial Conduct Authority (FCA), mis-selling can also occur if the lender fails to assess the consumer’s affordability adequately.
Common Signs of Mis-sold PCP Car Finance
Several signs can indicate that you’ve been mis-sold PCP car finance. These include:
- Being pressured into signing the agreement: If you felt pressured or rushed into signing the agreement without having enough time to understand the terms, it could be a sign of mis-selling.
- Not being informed about the total cost: If you were not clearly informed about the total cost of the agreement, including interest rates, fees, and balloon payments, it could indicate mis-selling.
- Being sold unnecessary add-ons: If you were sold add-ons like GAP insurance or payment protection insurance without being given a clear explanation of their benefits and costs, it could be a sign of mis-selling.
- Affordability checks not being carried out: If the lender failed to conduct proper affordability checks to ensure you could afford the repayments, it could indicate mis-selling.
- Being misled about your options at the end of the agreement: If you were misled about your options at the end of the agreement, such as returning the car, paying the balloon payment, or refinancing, it could indicate mis-selling.
Your Rights if You’ve Been Mis-sold PCP Car Finance
If you believe you’ve been mis-sold PCP car finance, you have rights under UK consumer protection law. These include:
- The right to complain to the lender: You have the right to complain to the lender directly. They are obligated to investigate your complaint and provide a response within eight weeks.
- The right to take your complaint to the Financial Ombudsman Service (FOS): If you are unsatisfied with the lender’s response or they fail to respond within eight weeks, you can take your complaint to the FOS. The FOS is an independent body that resolves disputes between consumers and financial businesses.
- The right to seek legal advice: If your complaint is upheld, you may be entitled to compensation. This could include a refund of any unfair charges, a reduction in the amount owed, or even the termination of the agreement.
Steps to Take if You Suspect Mis-sold PCP Car Finance
If you suspect you’ve been mis-sold PCP car finance, here are the steps you can take:
- Gather evidence: Collect all relevant documents related to your PCP agreement, including the agreement itself, any correspondence with the lender, and proof of payments.
- Contact the lender: Write a formal complaint letter to the lender explaining why you believe you were mis-sold the finance. Include any evidence you have gathered.
- Wait for a response: The lender has eight weeks to respond to your complaint.
- Escalate to the FOS: If you are unhappy with the lender’s response or they fail to respond within eight weeks, you can take your complaint to the FOS.
- Seek legal advice: If your complaint is upheld, you may be entitled to compensation. Consider seeking legal advice to understand your options and ensure you receive fair compensation.
Avoiding Mis-sold PCP Car Finance
To avoid falling victim to mis-sold PCP car finance, consider the following tips:
- Do your research: Before entering into any PCP agreement, research different lenders and compare their offers.
- Read the agreement carefully: Read the entire agreement carefully before signing, paying close attention to the terms and conditions, interest rates, fees, and balloon payments.
- Ask questions: If you have any questions or concerns, don’t hesitate to ask the lender for clarification.
- Consider affordability: Ensure you can comfortably afford the monthly repayments and the balloon payment at the end of the agreement.
- Don’t be pressured: Don’t feel pressured to sign the agreement on the spot. Take your time to consider your options and seek advice if needed.
Making a PCP Mis-selling Claim with National Claims
At National Claims, we understand the financial burden and frustration that can arise from being mis-sold a Personal Contract Purchase (PCP) car finance agreement. If you believe you were misled or overcharged, we’re here to help you seek justice and compensation.
Free Consultation
We recognise that every PCP mis-selling case is unique, and we’re here to offer you a free, no-obligation consultation to discuss your specific situation. During this consultation, we’ll listen attentively to your experience, gather relevant details about your PCP agreement, and assess the potential strength of your claim.
Our team will then connect you with a qualified solicitor from our panel who specialises in financial mis-selling claims, ensuring that you receive the expert legal representation needed to pursue your case effectively.
*Customers pay up to 25% (incl. VAT) of the amount recovered towards solicitor costs and if you cancel outside your cooling off period, you may be charged a fee.
Contact us today to speak to one of our claims agents who will be able to help you get started on your claim.
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