Personal Contract Purchase (PCP) agreements are among the UK’s most useful car financing options. Individuals prefer buying cars on PCP or HP deals as they offer control over the financials. For example, if you want to purchase the latest model of the BMW car but have limited finances, you may opt for a PCP deal. PCP deals have great advantages. However, some people may fall into a trap and sign a bad deal. In such cases, people can opt for PCP claims.
Recently, PCP claims have been the most prevalent topic in the UK. BMW car owners are filing for BMW PCP finance claim, and Audi buyers are also busy seeking Audi PCP claims. After the Financial Conduct Authority (FCA) has declared a series of mis-sold deals, Britishers are busy claiming for refunds. Let’s see, what is it all about?
BMW PCP and HP Claims
As we all know, Personal Contract Purchase (PCP) agreements, are similar to the Hire Purchase (HP) agreements in some ways.
A Hire Purchase agreement is based upon an initial depository and fixed monthly payments. Once all the payments are made by the customer, the ownership of the car is transferred to him. However, in a PCP deal, some things change in the end.
The customer is granted three options. Either he can retain the car, renew his contract, or return his car to the car dealer. Let us differentiate these options a bit.
If you have bought the latest model of the BMW or have previously obtained a BMW car on PCP finance, you are eligible for three end-of-term options.
If you want to keep the car and want to transfer its ownership to you, then you need to make sure that you have cleared all payments, which include the initial amount, monthly instalments and the optional final payment. The final payment is known as the balloon payment and is only due when you want to keep the car. This final payment is the Guaranteed Minimum Future Value (GMFV) of your car.
In case, you want to upgrade your car, you should sign a new PCP contract. Your car dealer or lender will make the recommended financial adjustments for you. However, if you want to end your contract and return the vehicle, you are free to do so.
These three end-of-term options are available to PCP holders only. That is the major difference between a PCP and an HP contract.
Mis-Sold PCP Car Finance Claim
Furthermore, while ending a PCP deal, make sure that you have complied with the terms and conditions of the contract and do not have any pending dues to clear. Some PCP holders are not aware of the mileage restrictions mentioned in the contract and as a result, they have to pay additional amounts at the end of the end. Whereas, sometimes, they are mis-sold and then make a BMW PCP finance claim.
What is mis-selling?
Mis-selling is the act of selling an expensive item without properly informing the customer. In case of a mis-sold car deal, the customer may plead for a mis-sold car finance. Here are some common reasons for mis-selling PCP deals.
- The lender charged a higher interest rate or a hidden fee.
- The car dealer did not provide a complete breakdown of total costs.
- The car dealer pressured the customer to sign the deal.
- The customer was not given suitable financing options.
- The car dealer did not run financial checks on the customer.
- The contract was not explained to the customers.
- The dealer did not provide accurate information about the car.
Any of the reasons mentioned above can be used to file a car finance claim. Recently, there has been a surge in the demand for PCP claims. The reason is the Discretionary Commission Arrangements (DCAs) on PCP contracts signed between 2007 and 2021. According to the research, thousands of customers who bought BMW on PCP finance were charged hidden fees.
This practice was very common at that time, but after January 2021, this was banned. Therefore, any customer who purchased any car on finance might have been mis-sold on his fair deal. Once this information came to the limelight, the UK witnessed an increase in PCP claims.
Goodwin Rodgers on Mis-Sold Car Finance Claims
Any customer who wants to make a PCP claim can gather all documents and visit the Financial Ombudsman Service (FOS) to clear his matter. But this will take time, as the car dealer or the lender may not entertain the request immediately and may refuse his claim. Therefore, it is better to consult PCP claim experts to handle your matter professionally. Our team at Goodwin Rodgers is always ready to assist you. We have a dedicated claim experts team to handle all sorts of mis-sold car deals. Our process is simple and easy to follow. You just need to gather all relevant information and documents of your PCP deal.
For signing a PCP claim, it is important to have a copy of the contract, e-mails, receipts, marketing documents and any other paperwork. Then, the next step in the claim process is to check your claim eligibility. We have a free online checker available on our website to check your claim eligibility. You can add your details over there, then our team will get in touch with you. This is an easy step to facilitate our customers.
Moreover, we do not charge anything from our customers until and unless they win a claim. It means, if you want to check your application status, you can do it for free. We have no hidden costs. However, once you win a refund, we will charge a small amount of our service fee.