Martin Lewis is a highly respected financial journalist and consumer advocate in the UK. He has long been a trusted voice in the complex world of personal finance. His recent focus on the issue of mis-sold car finance, particularly PCP deals, has been instrumental in educating the British public. His expertise and dedication make him a reliable source on this pressing issue.
Mis-sold PCP deals have taken a rise over the years. FCA has announced that individuals who purchased cars on PCP finance from 2007 to January 2021 might have been mis-sold on their PCP contracts. Furthermore, most Audi, BMW, Land Rover, and Mercedes buyers might have been mis-sold by their financiers. Let’s overview an Audi PCP claim.
PCP Claims
While the idea of claiming a refund on your PCP purchase may initially seem daunting, the process is not as complex as it may appear. Whether you’re making an Audi PCP claim, a Land Rover PCP claim, or a BMW PCP claim, the process is straightforward. It requires a good understanding of the PCP contract, your rights as a customer, and professional assistance. This reassurance should help alleviate any concerns about the process.
Martin Lewis is well known for his extensive knowledge of consumer finance and the claim process. According to his stance, almost all buyers of the PCP contracts should check their claim eligibility as there are higher chances of mis-selling.
Mis-selling means that the seller or the lender did not adequately inform the customer about the contract or the purchase deal. In the case of motor finance, the seller or the lender might have misled the customer, resulting in a mis-sold car finance deal.
The PCP process is usually straightforward, yet the agreement can confuse some customers. PCP finance has many associated benefits. It allows the buyer to distribute the total costs over a specific time, while authorising the customer to drive his favourite vehicle from day 1.
Similarly, a PCP holder is automatically blessed with three end-of-term options, which he may avail at the end of his contractual period. These are:
- Renew the PCP contract,
- Return the vehicle or,
- Retain the vehicle
These kinds of options are only available for some car financing deals. PCP holders enjoy these associated benefits of owning a new vehicle at the end of the contractual period, returning the vehicle without paying any balloon payment or permanently owning the vehicle after paying all amounts.
Furthermore, a PCP holder pays significantly lower monthly instalments than an HP contract holder. This means that a Hire Purchase agreement offers huge monthly instalments compared to a PCP contract. That is why most individuals prefer buying cars on PCP deals. Unfortunately, due to motor finance mis-selling, they paid more than they should.
Are You Mis-sold on Car Finance?
Now, how can you identify a mis-sold PCP contract?
According to basic customer rights, all PCP holders can opt for the most suitable car financing deal according to their needs.
It implies that all customers should:
- Have a proper understanding of the PCP contract
- Understand the terms and conditions of the finance deal
- Be aware of the balloon payment or final lump sum
- Have a breakdown of the total costs and future expenses
- Identify market interest rates and commission charges
- Accept the agreement after evaluating other financing options
- Consult before accepting the agreement
PCP claim process can only be initiated if any of the above-mentioned implications were not carried out correctly. If so, then it is a case of a mis-sold car finance deal. Research shows that the most common cause of mis-selling is hidden commissions. Before January 2021, most financial service providers were likely charging higher interest rates to earn higher commissions. This act was not disclosed to the clients, thus causing a conflict of interest. After January 2021, the FCA has banned DCA (Discretionary Commission Arrangements).
Goodwin Rodgers PCP Claim Experts on Motor Finance Mis-Selling
Goodwin Rodgers has a well-established PCP claim experts team. Our experts are trained to handle every query with integrity and professionalism. PCP claims are the most pressing issue in the UK’s financial market. Many financial service providers who might have mis-sold on car deals are working on the compensations. FCA is also investigating the issue.
Our team provides free service. We do not charge anything until and unless you win your refund amount. The claiming process is as follows:
- Identify the reason for mis-selling
- Collect supporting evidence
- Contact lenders, FOS, or claim experts
- Wait for refund
If you are interested in checking your eligibility for a PCP claim, just visit our website and enter details on our Free PCP Claim Checker. It will speed up the entire process. If you are eligible to apply for a refund, gather all PCP-related documents, whether it be receipts, paperwork, marketing materials or emails. Then, you may contact the FOS (Financial Ombudsman Service) or the lenders to accept your application. If you are unable to do so yourself, you can directly contact solicitors to handle your claim process easily.