What are PCP Claims? Here’s what you need to know.

What are PCP Claims? Here’s what you need to know.

Car finance for new cars Manchester

If you’ve ever taken out finance to buy a car, the chances are that at some point in the process, you were offered Personal Contract Plans (PCPs). However, many of these agreements have been mis-sold by dealerships who failed to explain all of the options properly to customers.

What is PCP

PCP is essentially a personal loan taken out in order to purchase a car. However, unlike a standard loan, you won’t be paying off the full value of the vehicle and you won’t own the vehicle at the end of the deal (unless you agree to pay a much larger final payment).

Mis-sold PCP

Many PCP agreements for used or new cars have been mis-sold to customers. The Financial Conduct Authority (FCA) has recently banned car finance deals where the car dealers and their sales teams could earn more commission if customers were signed up to a more expensive PCP. This usually happens without the buyer even knowing what commission the sales team was getting. This is known as a ‘secret’ or ‘hidden commission’.

A hidden commission is where the car dealer sells you a finance package for the car but doesn’t tell you that they are getting a commission or specify how large the commission is. Most customers do not realise that the dealership/salesperson may also be getting a commission from the finance company for the PCP finance agreement, which results in the customer potentially paying more than they should. To ensure full transparency for their protection, the exact amount of this commission should be disclosed to the customer. If you were not clearly informed of the exact amount of the commission, you were probably mis-sold and could claim compensation on mis-sold car finance Manchester.

Steering wheel

How long will the claim take?

The amount of time it takes to claim will depend on individual circumstances. The claim can take just a couple of months if the dealership/finance company accepts responsibility for the alleged PCP mis-selling and agrees to put things right. However, if the allegations are disputed, the claim could go to the Financial Ombudsman Service (FOS). This could take up to 18 months.

If you would like to make a claim for a mis-sold PCP agreement for free, contact PCP Claimsline using the details below. They help you claim for motor finance mis-selling in Manchester and offer their services on a no-win-no-fee basis so there is no risk to making a claim.

PCP Finance Claim – PCP Claimsline

Web: pcpclaimsline.com

Tel: +44 333 358 2131

Email: info@pcpclaimsline.com

Address: Bank Chambers, 93 Lapwing Lane, Manchester, United Kingdom, M20 6UR

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