If you have purchased a new or used car on Finance, you can be confident that you have found the best possible deal for your circumstances. But what if you have been unfairly sold car finance?
Buying a car on a personal contract purchase (PCP) is an increasingly popular option for many of us who would otherwise be unable to pay the full cost in a lump sum payment. PCP allows you to pay an initial deposit, followed by a monthly payment, and depending on the details of the agreement, a final ‘balloon’ payment if you want to buy the car outright.
While PCP agreements are certainly a very attractive option for anyone looking to buy a new or used car in the UK, there are some risks to be aware of, the most notable of which are mishandling car finance. In danger of being sold.
members of the public are now making PCP claim In retaliation for being subject to hidden fees that inflated the sale price, or being misled about the details of the agreement.
So, what should you do if you think you have been unfairly sold car finance? And what can you potentially stand to win? We’ll answer those and more questions in the following post.
What is PCP scam?
You should know that, when a dealer or lender offers a PCP car finance deal, they have a legal obligation to inform you of what is included in the deal and what they are allowed to do. Unfortunately, this is not always the case, which is why there is an ongoing scam that needs to be addressed.
financial conduct authority (FCA) investigated these specific issues and found evidence of widespread misselling of car finance, all affecting a variety of PCP deals.
For example, some lenders have been found guilty of encouraging brokers and car dealers to charge higher interest rates in order to receive higher commissions in return. Concerning commission, it has also been found that some consumers are not being fully informed about the commission which is being paid, due to which they have to pay unfairly more money on PCP, What they really should have given.
How do you know if you have missold Car Finance?
It is important to note that not every pcp deal Guaranteed to be sold incorrectly. That’s why it’s important to know what’s included in an individual deal and what are the potential warning signs that could point to a mis-sold car finance.
If you believe that the seller selling the PCP deal has failed to adequately run through all possible options at your disposal, or any alternative deal best suited to your circumstances, Car Finance may have been unfairly sold. . Similarly, if a seller did not tell you about receiving commission on the sale or did not inform you that you would pay it, it could also amount to a false sale.
Of course, finding out if you’ve been unfairly sold car finance can be a tricky process, especially if the answers to these issues are buried in mountains of complicated paperwork, or the deal was struck long ago.
However, this takes us to the next point of discussion; What steps you should take and who can help you if you feel that you have been unfairly sold car finance.
What do I do if I’ve got a wrongly sold car financed?
If you feel that you have been unfairly sold car finance, the first thing you should do is find out whether you are eligible to claim PCP or not. If you are able to make a successful PCP claim, you will be able to access compensation, which will cover, or subsidize, the financial losses you experience as a result of a wrongfully sold car finance.
Bringing forward a wrongfully sold car finance claim would, of course, be a difficult prospect, given that there are a lot of details that need to be addressed.
Hence it is strongly advised that you should speak to an expert. There are many legal professionals who now have ample experience and expertise in dealing with unfairly sold PCPs. Therefore, they will be in the best position to review your situation and advise you whether making a claim is likely to be in your best interest.
If so, they will be able to guide you through the entire process and do all the heavy lifting on your behalf. If everything goes according to plan, you should come out with compensation from the other side that helps you move on with your life.
How much compensation can I get if I make a PCP claim?
If you have been unfairly sold car finance, the exact amount of compensation you will receive will ultimately depend on many different factors.
Wrongly sold car finance compensation can range from a few hundred pounds to several thousands, depending on the extent of the wrongful sale and the actions taken by the lender. This figure will depend on factors such as the size of the loan and annual percentage rate on which the allegation was made.
It’s also worth noting that you will probably be able to make a PCP claim if your loan is still ongoing. You don’t necessarily have to pay the final balloon payment.
Do you have any other questions about PCP claims?
In this post, we have discussed what is meant by wrongful sold car finance, what steps you can take to help resolve the issue and the level of compensation you can get if you are an unfortunate victim. Is.
Do you have any more questions about missold car finance? If so, feel free to leave them in the comments below!
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial professional. Be sure to consult a financial advisor if you are seeking advice on your finances. We are not liable for the risks or issues associated with using or acting on the information on this site.