Black Horse is a trusted name under the Lloyds Banking Group. The company is a leading automobile finance provider in the UK. It helps individuals and businesses acquire vehicles without facing upfront financial strain. Whether you want to own a brand-new vehicle or a used vehicle, Black Horse offers variable finance packages that cater to all individual’s needs and budgets.
The company has strong dealership connections and offers a range of customer services. It makes the purchasing process more easy and affordable. The company offers Personal Contract Purchase (PCP) and Hire Purchase (HP) car finance agreements. Each car finance agreement has its own attributes and is designed to provide flexibility and peace of mind. In case of a mis-sold PCP deal, customers can make a Black Horse PCP claim. Similarly, MotoNovo Finance is also a very popular source of vehicle financing in the UK. Customers who purchased vehicles from them can make a mis-selling claim to get a MotoNovo PCP refund.
Benefits of PCP Car Finance?
Car finance agreements provide tremendous opportunities for its customers to own cars at affordable rates. PCP finance is the most common form of owning cars on car finance. PCP contracts differ from HP contracts.
A Hire Purchase (HP) agreement consists of an initial payment followed by fixed monthly instalments. The customer pays the monthly instalments for a specific period until the total amount is paid off. He then becomes the owner of the vehicle.
Whereas, in a PCP contract the customer makes an initial deposit, and then he makes lowered monthly payments as compared to an HP agreement. These monthly instalments are adjusted for the pre-decided interest rate. The customer pays the amount on a regular basis for a fixed term. Later, at the end of the contract, he has three end-of-term options.
- Retain
- Return
- Exchange
If the customer wants to retain the car, he will pay a final balloon payment, also known as a Guaranteed Minimum Future Value (GMFV). This optional payment is only due if the customer wants to retain the car. Otherwise, it is not mandatory. If he wants to return the car, he can do so without paying anything. Thirdly, if the customer wants a new car in exchange for the current vehicle, he can sign a new PCP contract.
These three end-of-term options are not available in an HP contract. This flexibility of a PCP deal allows customers to buy cars on PCP finance from Black Horse or any other lender. But in case of a mis-sold car finance, the customer can always seek a Black Horse PCP claim.
Reasons for PCP Mis-Selling
There are multiple reasons for PCP mis-selling. PCP contracts are complex and tricky. The customers can not easily understand them. That is why it is the utmost duty of the car finance provider, lender, broker, or car dealer to educate the customers on the terms and conditions of a PCP contract. If they fail to do so, this can be considered as mis-selling of car finance deal.
Similarly, the customer should be familiar with the optional balloon payment, end-of-term options, mileage restrictions, car’s condition, interest rates and commission charges. The lender should provide a complete breakdown of the total costs of the contract. If the lender does not disclose any hidden fees, the customer can make a mis-selling claim. The Financial Conduct Authority (FCA) has found a series of mis-sold car finance deals that took place between 2007 and 2021. They analysed that thousands of customers were mis-sold on car finance due to Discretionary Commission Arrangements (DCAs). DCAs were not banned before 2021. As a result, many lenders charged excessively high interest rates on PCP contracts to increase their profit gains. Thus making it more stressful for the customers to pay back the amount. This caused a hike in PCP complaints, and now the authority has stopped the practice of DCAs to stabilise the situation.
Black Horse PCP Claim Process with Goodwin Rodgers
If you also purchased a car on finance from Black Horse Finance before 2021, you can make a PCP claim. Our PCP experts team at Goodwin Rodgers is trained to handle the claim process swiftly. We have an in-built free claim-checking tool available on our website to verify your eligibility for the PCP claim. You should enter your details and get a free check on our website.
If you qualify for the claim process, our team will contact you to escalate the claim process.
The PCP claim process is time-consuming, and it requires a lot of legal work. We have to follow the news updates and meet all requirements to win your claim. Therefore, you should gather all relevant details and documentation for fast processing. Our team will help you at each and every step and will help you get your money back.
So, claim now.