Navigating the complexities of car finance can be a daunting task, especially when it feels like you’ve been misled or misinformed. If you believe you were mis-sold a Personal Contract Purchase (PCP) car finance agreement in London, understanding your rights and options is crucial.
What is Mis-sold PCP Car Finance?
PCP car finance has become a popular way to finance new and used cars in London. It offers lower monthly payments compared to traditional hire purchase agreements. However, the allure of affordable monthly payments can sometimes mask potential pitfalls. Mis-selling can occur in various ways, including:
Lack of affordability checks:
Lenders are required to conduct thorough affordability assessments before approving a PCP agreement. If they failed to do so, or if they approved an agreement despite clear evidence of unaffordability, it could constitute mis-selling.
Misleading information:
If the lender or car dealer provided inaccurate or incomplete information about the terms and conditions of the agreement, including the total cost, interest rates, or balloon payment, you may have grounds for a mis-selling claim.
Pressure selling:
If you felt pressured or coerced into signing a PCP agreement without having sufficient time to consider the terms, it could be considered mis-selling.
Your Rights as a Consumer
If you suspect you were mis-sold PCP car finance, you have rights under UK consumer protection law. The Consumer Credit Act 1974 and the Financial Conduct Authority (FCA) regulations provide safeguards to protect consumers from unfair practices.
Right to complain:
You have the right to complain to the lender or car dealer if you believe you were mis-sold PCP finance. They are obligated to investigate your complaint and provide a response within a reasonable timeframe.
Right to compensation:
If your complaint is upheld, you may be entitled to compensation for any financial losses you incurred as a result of the mis-selling, such as excessive interest charges or unfair fees.
Right to terminate the agreement:
In some cases, you may have the right to terminate the PCP agreement early if it was mis-sold. However, it’s important to seek professional advice before taking this step, as there may be financial implications.
Potential Outcomes of a Successful Claim
If your claim for mis-sold PCP car finance is successful, you may be entitled to:
- Compensation: You may receive financial compensation for any losses you’ve incurred due to the mis-selling, such as excessive interest payments or the cost of unnecessary add-ons.
- Termination of the agreement: In some cases, the agreement may be terminated, and you may be able to return the car and have any outstanding balance written off.
- Reduced payments: The lender may agree to reduce your monthly payments or the balloon payment to make the agreement more affordable.
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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