If you think you have been mis-sold on your car finance deal, you can make a claim against your lender. Many people in the UK are seeking refunds against their car dealerships or lenders. However, to do so, you should first identify your reasons for mis-selling and then hire the best claims management company to handle your mis-sold car finance claim.
What is a Mis-Sold Car Finance?
Whenever an individual buys a car on finance, he chooses from two different types of car finance deals: a personal contract purchase (PCP) or a hire-purchase (HP) finance. In 2021, many people started claiming refunds on their mis-sold PCP contracts. They claimed that they were mis-sold on car finance and might have overpaid on their contracts. The Financial Conduct Authority (FCA) is running an investigation on each complaint request and has banned the practice of Discretionary Commission Arrangements (DCAs) in the UK.
The authority states that individuals who purchased a car, bike or any motor vehicle on PCP finance before 2021 can be eligible for a PCP refund. For instance, if you purchased your car from Close Brothers Finance, you can apply for a Close Brothers PCP refund. Many people are making claims for Close Brothers mis-sold car finance deals.
Identify Common Mis-Selling Issues
Furthermore, there are some other points to consider as well before making a PCP mis-selling claim. Let us say that you purchased your dream car on PCP finance, which resulted in extreme financial and psychological stress. You found out that the deal was not suitable for your financial status and could have been offered a better one. This is something extremely important for all customers to note. Many customers are not aware of the complexity of the PCP contract. They do not have a better idea about the other financial alternatives available to them. This is the job of the salesperson and the car dealership to educate the customers on the best product. If they lack information and mis-sell the deal, the customer has every right to complain about it.
Likewise, the customer should have complete knowledge of the PCP process and all the costs involved in the PCP agreement. They should know about the optional final balloon payment plan, wear and tear costs, and other costs that might occur in the end. If they are not properly informed about such costs in the agreement, they can complain about it.
PCP contract offers three end-of-term options, which include retention, return, and exchange of the vehicle. If the customer wishes to retain the car, he can make the final deposit, also known as the balloon payment, Guaranteed Minimum Future Value (GMFV). This is an optional payment but is a huge lump sum that is paid to get the ownership of the vehicle. In a Hire Purchase agreement, these options are not valid.
Another reason for mis-selling can include pressure tactics by the salesperson to sell the deal without seeking the best interest of the customer. Sometimes, the seller charges hidden fees or commissions on the PCP contract to earn an extra amount. These hidden fees or commissions are not properly disclosed to the customer, and they pay an extra amount as a higher interest rate. This can also lead to mis-selling claims. If you think that you have been mis-sold on your car finance deal, you can make a mis-sold car finance claim.
Seek Help from Claims Management Company
People who purchased cars on PCP or HP finance between the years 2007 and 2021 are applying for mis-selling claims. They might have been mis-sold on their PCP and HP contracts. At the time some sellers charged hidden fees and commissions on the contracts unfairly. Now, many people are making claims to get their money back.
If you are not sure how to proceed with the PCP claim process, you can seek assistance from a claim management company. A claim management company will provide you with additional details, help, and support to make your PCP claim process simple and easy.
It is extremely tough to follow up on all news and restrictions, gather evidence and identify mis-selling issues. Therefore, hiring a PCP and HP claims expert will definitely help you easily navigate the PCP claim process.
Before hiring PCP and HP claim experts, you should work on identifying your main mis-selling issue. Get a copy of your PCP agreement, payment receipts, and marketing materials, including e-mails, brochures, and other stuff, and identify any discrepancies within the contract. If you have these supporting documents, you will ultimately be able to file a successful PCP claim. Remember, the PCP claim process is time taking, but it is free of cost, a no-win, no-fee agreement. So, make a claim and get your money back.
