Mis-sold PCP car finance can be a distressing experience for anyone. If you’re in Liverpool and believe you’ve been a victim of mis-selling, it’s crucial to understand your rights and the potential avenues for redress. This comprehensive article aims to shed light on the issue, providing you with the knowledge and resources necessary to navigate this challenging situation. We will also highlight how you can start a claim.
Understanding PCP Car Finance
Personal Contract Purchase (PCP) has become a popular way to finance cars in the UK. It offers lower monthly payments compared to traditional hire purchase agreements. However, the complexity of PCP deals can sometimes lead to mis-selling.
In essence, PCP involves three key elements: an initial deposit, monthly payments, and a final balloon payment (also known as the Guaranteed Minimum Future Value or GMFV). At the end of the contract, you have the option to pay the balloon payment to own the car, return the car, or part-exchange it for a new one.
Common Mis-selling Practices in PCP Deals
Mis-selling can occur in various ways during the PCP sales process. Some of the common practices include:
- Failure to conduct adequate affordability checks: Lenders have a responsibility to assess your financial situation and ensure you can comfortably afford the monthly payments and the final balloon payment. If they fail to do so, it could be considered mis-selling.
- Misleading information about the terms and conditions: The lender must provide you with clear and accurate information about the terms of the agreement, including the interest rate, the total amount payable, and the options available at the end of the contract. If you were misled or given inaccurate information, you might have grounds for a complaint.
- Pressure selling tactics: You should never feel pressured into signing a PCP agreement. If the salesperson used aggressive tactics or rushed you into making a decision, it could be considered mis-selling.
- Hidden fees and charges: All fees and charges associated with the PCP deal should be transparent and clearly explained to you. If you were surprised by unexpected fees or charges, it could indicate mis-selling.
- Misrepresentation of the GMFV: The GMFV is an estimate of the car’s value at the end of the contract. If the lender significantly overestimates the GMFV, it could make it difficult for you to afford the balloon payment or part-exchange the car. This could also be considered 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 the right to complain to the lender and seek redress. The Financial Conduct Authority (FCA) has set out rules and guidelines that lenders must follow when selling PCP deals. If the lender has breached these rules, you may be entitled to compensation.
The compensation you could receive will depend on the specific circumstances of your case. In some cases, you may be able to get the agreement cancelled, have your monthly payments refunded, or receive a reduction in the balloon payment. You may also be entitled to compensation for any financial losses you’ve suffered as a result of the mis-selling.
Taking Action: How to Make a Complaint
If you want to make a complaint about mis-sold PCP car finance, the first step is to contact the lender directly. You should explain why you believe you were mis-sold and what you’re seeking as redress. The lender has eight weeks to respond to your complaint.
If you’re not satisfied with the lender’s response, or if they don’t respond within eight weeks, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that can investigate complaints about financial products and services. Their service is free to use.
Seeking Legal Advice
In some cases, it may be beneficial to seek legal advice if you’ve been mis-sold PCP car finance. A solicitor specialising in consumer law can assess your case and advise you on the best course of action. They can also help you negotiate with the lender or represent you in court if necessary. national claims can help connect you with a solicitor who will be able to assist you in case in the best way
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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