Personal Contract Purchase (PCP) or else ethereal PCP claims might seem to be an advanced financial issue to most people, but if you have used any car leasing or financing services, then this is something that could affect you. In the UK, PCP has become a very common way of purchasing a vehicle, but it does not come without challenges. Misrepresentation or lack of comprehensive information may in some instances aggravate consumers’ out of pocket expenses and result in the emergence of a PCP claim. But who knew customers would be asking for the PCP claims? Who qualifies for such claims? When are they applicable?
Therefore, in this article we will provide detailed information regarding the PPC claims such that one will in turn question whether he or she has been mis sold a PCP agreement or not. In both cases of either being on PCP plan or in stead looking for ways to compensate oneself as a result of unfair deal, then this is the guide to refer to.
What Is a PCP Agreement?
Before delving in to PCP claims, it is important to explain what a PCP agreement is. It’s a car finance agreement called Personal Contract Purchase (PCP), which enables one to use a new or used vehicle but not fully own until the termination of the contract.
How Does PCP Work?
You pay an initial amount, and then pay for a certain number of months every month. These amounts are less than typical car financing because you’re not paying the entire value of the car but merely the devaluation of the car. At the end of the contract, there are three choices available:
- Return the car
- Make a balloon payment and retain the car
- Exchange it for some other vehicle
- 1.2 PCP vs. Hire Purchase
On the other hand, payments in hire purchase are made over the duration of the contract for the total cost of the car hence higher installments are charged every month but client gets full ownership of the car at the end of the contract. Comparator is hitwer purchase and We can get ownership directly through payment but it does not free at one time.
What Are PCP Claims?
A PCP claim is where consumers current or previous customers believe that they have been out sold on a PCP agreement to them where there was a lack of proper explanations of the important aspects of the deal, or it was misrepresented.
Why Are There More and More PCP Claims Being Made?
Lately, concerns have been raised regarding the manner in which car finance products, especially PCPs, have been marketed to the consumers. Many people have felt that they have been taken advantage of or the deal on the table was not clearly articulated.
Mis-selling in PCP Agreements
Summary in bulleted points: PCP mis-selling can take place in a number of areas such as:
Concealment of all or extra charges: As, a room rent agreement is made, some dealers do not remit such extra charges which are of balloon payments towards the finals of that agreement.
Dab checking as to whether one can afford: There is a requirement that lenders check it out that one does not earn beyond what the payments would be, but that has in some times been ignored.
Failure to mention miles limitation: Many PCP contracts will limit the number of miles an individual drives and exceeding this limit will result to pay considerable fees. If these were not properly revealed to you, you may have merit in a claim.
How Do You Know That You Have A PCP Claim
Not sure if you have been mis-sold a PCP agreement or why. Here’s a simple breakdown to help you understand if there is a reason for filing a claim.
Do you comprehend concepts of agreement?
If the dealership did not clarify how PCP takes place or if they skipped to mention details such as how long is the mileage or the balloon payment or what happens at the end of the contract then you can conclude that you were mis-sold the agreement.
Do You Have an Idea of the Total Amount of Money Involved?
One of the most popular issues leading to PCP complaints is that consumers have been misled regarding the total costs of the agreement, particularly the balloon payment that will come due in the end.
Affordability Checks: Were They Done?
It might follow that you were mis-sold the PCP if your income and living expenses were not well examined to ascertain whether you would be up to the task of making the monthly repayments. It is a legal requirement for lenders to conduct checks as to whether you will be able to bear the expenses of the purchase in question.
Steps to Take in order to Make a PCP Claim
If you are certain that your PCP agreement was mis-sold to you, read on to find out how to go about claiming.
Gather Your Documentation
To begin with, you need to collect the relevant documents to your PCP agreement. This includes the contract of the PCP with the dealership, any other communications with the dealership and proof of payments or correspondence.
Contact the Dealer or the Financing Company
Before one takes any step towards engaging the legal process, it would be wise to first contact the particular dealership or lender from whom you bought the PCP. State the reasons why you think you were sold inappropriate products and ask them to resolve it.
Seek Professional Help
If the dealership isn’t cooperative, it’s time to get assistance from professionals. There are companies such as Legal Assist which assist consumers with financial claims such as the PCP mis-selling. They will help you through the process and will advocate on your behalf.
Legal Assist Helps You Make a Claim in Relation to the Problems of PCP Mis Mis-Agent
Legal Assist has a dedicated department handling claims related to taking out PCP insurance. The team at Legal Assist also knows how car finance agreements work and therefore strives to obtain compensation for their clients.
Why Choose Legal Assist?
We have the relevant experience that ensures that you place proper claims with PCP since we are credible in these PKP orientated procedures. We appreciate how dealerships do business, and we will apply that knowledge in constructing a compelling argument on your behalf. With Legal Assist, you never have to worry about getting your money back for any overpayment. Neither will you be caught in an unfair contract, thanks to the legal assist.
What to Expect When Filing Other Legal Claims Regarding Legal Assist Governorjoan.com
Filing a claim with Legal Assist is very easy and fast. From beginning to end, we do everything so you don’t have to wade through the legalese. Just give us the information and we will handle the rest in the right and efficient way without any worries on your side.
What Can You Be Paid As Compensation?
If you succeed in making a PCP claim, then there are possibly some compensations that you can receive.
Refund of Payments
In case of mis-selling or non-compliance, refund may include a proportion of the payment made for the car, particularly in instances where you are overpaying for the car.
Early Termination Of Contract
A well-done claim might also enable you to end the PCP agreement before the agreed time without incurring any penalties or making the final balloon payment.
How Long Do We Have To Submit PCP Claims
There are legal timeframes involved when making a claim for PCP and failing one might hinder the chances of success.
How long does one have to pursue a PCP claim?
As a point of note, any such claims must be filed within six years counting from the date of the PCP or from the time one discovered the mis-selling of the PCP. However, it is advisable that any claimant files as soon as they are able to.
- Real Life Situations Where Customers Have Won Their PCP Claim
There are many people who have won money back after making a PCP claim. Here are a few real-life stories to show you it’s possible.
Sarah’s Story: Had A Misinformed Belief That there Was No Mileage Restriction
Sarah signed the PCP agreement having no idea of the rigid restrictions on the amount of distance that was allowable. She exceeded the distance, and was consequently charged exorbitant fees, which the dealer did not adequately clarify. With the help of a claim, she was able to get her fees back and terminate her contract even before it reached its contractual end.
John’s Case: Did Not Mention Any Large Payment At The End Which Is Ako Called Balloon Payment
John did not appreciate the fact that a large balloon payment was payable after his PCP agreement. When it came to either remitting the lump sum or returning the vehicle, that time came when he was completely unprepared financially. This resulted in him successfully making a PCP claim and receiving recompense.
Common Misunderstandings About PCP Claims
As with any other civil litigation a lot of misunderstandings surround the PCP claims. Even for those who would prefer to pursue justice, the process would otherwise appear complicated and or daunting.
The time limit for Enquiry has expired
As discussed earlier, there is a limitation period with them where normally they have up to about six years to claim. So even subscribing to the agreement that expired a few years ago, you may still claim.
Vehicles that qualify for PCP claims are for first-time buyers only
PCP claims do not relate to only new autos. It does not matter whether it is a new or a second-hand vehicle that you bought, if you were mis-sold the PCP agreement, you can claim.
Prognosis For The Development of PCP Claims
With increasing awareness alongside the rise in the PCP mis-selling, more and more customers are coming forward and making claims. This may mean that the selling of car finance agreements may change in the future.
Changes in the Regulatory Environment
Since the advent of the Financial Conduct Authority (FCA), there has been a continuous review on how car finance agreements are being sold and this will cause more prudential regulations and more clarity on the processes.
Conclusion:
Act on your PCP Claim
If a PCP agreement has been mis-sold to you, take action and do not waste any more time. They know that seemingly reasonable explanations, such as claiming that most of the cost of the asset is concentrated in the final payment, also serve this purpose. Contact people, such as Legal Assist, who are professionals in the field so that you would not find yourself losing out on what is supposed to be compensation for you. Let no longer an unreasonable PCP agreement continue to fool you and rob your money.
FAQs
How do I find out if I have been mis-sold a PCP agreement?
If the PCP balloon payment or mileage limits were not clearly explained as a critical element, you may be mis-sold the PCP.
Is it still possible to claim after the original PCP agreement has ceased?
Yes, yes usually you are allowed to submit a claim within a period of six years from the date of signing the agreement or the date you knew about the mis-selling.
If my claim is successful, will I get my money back?
Yes, in some, if not all, instances, you may be eligible for a refund on some or all the payments that were made by you as it will depend on the nature of your claim.
