Did you know that you might be able to claim back against your expensive PCP monthly payments? This can be achieved through a PCP claim.
Many consumers in the UK have been mis-sold finance products through a common shady lending practice. This process, known as PCP mis-selling, involves selling finance plans with hidden fees and inflated interest rates.
If you are a victim of this, you can claim back the extra costs involved in your PCP deal.
In this guide, we’ll break down what a PCP claim is, who is eligible for one, and how you can make a claim and recover lost money.
A Personal Contract Purchase (PCP) is a type of financial plan that most people in the UK sign up for when buying new or used cars.
With these car finance deals, it has become common practice for the salesperson to receive a significant commission from the lender finance company when they sign a new customer up to a PCP finance agreement.
This commission will often inflate the price of the contract, which remains unknown to the customer. A PCP car finance claim allows customers to claim back compensation for this hidden commission mis-selling.
PCP claims are settled through the Financial Ombudsman Service in line with the Consumer Credit Act. These claims have been made available through the regulatory Financial Conduct Authority (FCA), which has identified mispractice in this area.
Hidden commissions occur when a salesperson sells a loan or finance agreement and receives a commission from the bank or lender. The salesperson receives a commission from this, which is included in the finance agreement. However, this commission remains hidden or undisclosed to the customer.
This is common practice with a PCP car finance deal and is referred to as mis-sold car finance.
If you were a victim of mis-sold car finance, you may be able to claim back compensation for this. If the salesperson did not clearly explain the commissions in your car finance agreement to you, then you could stop the loan and claim a refund for the interest and fees.
There is a good chance that you may have been mis-sold a car finance loan in your personal contract purchase if you received poor advice about financing options or were not made aware of different options that exist.
If commissions for the finance company were not discussed, and if the car dealers pushed a specific PCP car finance option without explaining why then you may have been mis-sold PCP car finance.
Take a look at your PCP agreement and look out for any mention of commissions in the finance deal. If car finance companies have not made this clear to you, then you have been mis-sold PCP car financing.
The exact amount of PCP claims differs based on the size of the loan, how long you have been paying off the loan, and what interest rate you were quoted.
The aim of claiming on a car finance PCP agreement is to get reimbursement for paying more interest and additional charges than you should have. This interest is what pays for the large commission that you were unaware of.
So, if you were quoted much higher interest rates than the interest rates you should be paying, you will be able to claim back more on mis-sold finance agreements.
The average amount for a claim compensation is estimated to be around £1,100. However, your mis-sold PCP car finance claim can be significantly higher depending on the specifics of the case with your car dealership and finance broker.
Start by gathering all of the paperwork relating to your PCP agreement. You will need to gather your original finance agreement, as well as any of your written correspondence with the dealership or lender about your car finance options.
It’s important that you are able to present as much evidence as possible against the dealer. Your goal is to show that you were sold a finance product without being made aware of the hidden commission. This is why having a trail of written correspondence is important.
When you have all of this information available, you can make your claim. To do this, you will need to use a trusted claims management company that works in line with the solicitor’s regulation authority.
The solicitors will help you build your case against the motor dealers and finance brokers. They will help identify how much you can claim back from inflated interest charges and hidden fees.
While this depends on the specific PCP finance claim, the process usually takes 8 to 16 weeks. This time period covers the date of acknowledgement through to the final decision of the case.
However, the process can take a lot longer if the claim is initially rejected. This is why it’s important to use the right PCP claim services.
If you are able to gather plenty of clear evidence against the car dealership mis-selling, and you use an experienced solicitor, the claim and PCP compensation process might move along a bit faster.
With the right claims management company, gaining PCP compensation becomes a lot easier. You’ll need professional representation to help you dissect the claim, identify the extent of the mis-selling, and help you claim compensation effectively.
Without professional help, navigating your way through contracts can be an incredibly difficult process.
Paxton Willis can help you make PCP claims against your car dealer and finance brokers. We will help you identify your claim and build your case. With our services, we will make sure that you get the best possible compensation package.
Get in touch with us today to see how we can help you regain lost money in your PCP claim.
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