A PCP claim is a legal process where you seek compensation if your car finance agreement was mis-sold under a Personal Contract Purchase (PCP) deal. This usually happens when the risks, fees, or ownership options were not properly explained to you. In the UK, many drivers have successfully made PCP claims and received refunds or reductions on their car finance.
Understanding PCP Finance : The Basics
Personal Contract Purchase (PCP) is a popular car finance option in the UK. It allows you to pay a deposit followed by fixed monthly payments, then gives you the option to either return the car, trade it in, or buy it outright with a final balloon payment.
However, in recent years, thousands of UK drivers have discovered they were mis-sold their PCP deals. This has led to a surge in PCP mis-selling claims. Common issues include:
- Not being told they wouldn’t own the car unless they paid a balloon payment.
- Being pushed into a deal that wasn’t affordable.
- Not being informed about interest rates or hidden fees.
- Dealers not disclosing they were getting commission for selling the finance.
If this sounds familiar, you might be eligible to claim compensation.
How Does a PCP Claim Work in the UK?
A PCP finance claim can stem from various scenarios where the consumer feels they were misled or unfairly treated during the agreement. Some common grounds for claims include:
- Mis-selling: The finance provider failed to adequately explain the terms and conditions of the PCP agreement, leading the consumer to enter into a contract they didn’t fully understand or that wasn’t suitable for their needs.
- Unaffordable payments: The finance provider didn’t conduct proper affordability checks, resulting in the consumer struggling to meet their monthly payments.
- Excessive interest rates or charges: The consumer believes they were charged unfairly high interest rates or hidden fees that weren’t adequately disclosed.
- Early termination penalties: The consumer faced excessive penalties for ending the PCP agreement early, causing financial hardship.
- Negative equity: The consumer was left with negative equity at the end of the agreement, meaning the car’s value is less than the outstanding finance amount, making it difficult to part-exchange or sell the vehicle.
Signs You Were Mis-Sold a PCP Agreement
Not sure if your deal was unfair? Here’s what to look for:
- You weren’t told that you’d have to make a large final payment to own the car.
- You were given the impression the car would be yours at the end.
- The dealership failed to explain all finance options available to you.
- Your financial situation wasn’t properly assessed.
- The dealer didn’t disclose they were earning commission on the finance deal.
Even if it happened years ago, you might still have the right to claim.
Mis-sold Car 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 – Mis-sold Vehicle Finance Team.
People Also Ask
Q1. ❓ Can I claim compensation for mis-sold PCP car finance in the UK?
Yes, you can claim compensation if you were not properly informed about key aspects of your PCP agreement, such as ownership terms, affordability, commission, or interest rates.
Q2. ❓ What is the average payout for a mis-sold PCP claim?
Payouts vary, but many UK claimants receive between £1,000 and £5,000, depending on the value of the agreement and the nature of the mis-selling.
Q3.❓ How long does a PCP claim take?
It can take anywhere from a few weeks to several months. Complex cases or those involving large finance companies may take longer.
Q4.❓ Do I need a solicitor to make a PCP claim?
While you can make a claim yourself, using a solicitor increases your chances of success. They handle the paperwork, legal arguments, and negotiations.
Q5.❓ Is there a deadline for making a PCP claim?
You can claim for mis-sold PCP agreements taken out between April 2007 and 28 January 2021. Typically, you have six years from the date of the agreement, or three years from when you first became aware of the mis-selling, to make a claim.
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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