PCP Claims Explained: Uncovering Mis-Selling Practices and Your Rights with SortMyCash and Chan Neill Solicitors
Personal Contract Purchase (PCP) is a popular car finance option that offers flexibility and convenience for car buyers. However, the Financial Conduct Authority (FCA) has uncovered widespread mis-selling practices associated with PCP deals. At SortMyCash, in partnership with Chan Neill Solicitors, we’re dedicated to helping you understand your rights and claim compensation if you’ve been affected by mis-sold PCP agreements. In this comprehensive guide, we’ll explain the ins and outs of PCP claims and common mis-selling practices.
What is Personal Contract Purchase (PCP)?
PCP is a form of car finance that allows you to drive a new car for a fixed period, typically 2-4 years, by making monthly payments. At the end of the term, you have the option to buy the car by paying a pre-agreed balloon payment (Guaranteed Minimum Future Value), return the car without further charges, or use any equity towards a new car and start a new PCP agreement.
Common PCP Mis-Selling Practices:
- Undisclosed Commissions: 95% of car dealers and brokers receive commission from lenders for arranging PCP deals. If the dealer failed to disclose this commission, you may have been mis-sold the PCP agreement and could be owed an average of £6,000.
- Inflated Interest Rates: Some dealers and brokers have the power to manipulate interest rates, resulting in higher monthly payments for customers. This practice allows them to earn higher commissions from lenders, at the expense of the customer.
- Inadequate Explanations: If the dealer or broker didn’t fully explain the terms and conditions of your PCP agreement or didn’t explore alternative finance options suited to your circumstances, your PCP deal may have been mis-sold.
- Unfair Contract Terms: Some PCP agreements contain unfair terms, such as excessive mileage charges or unrealistic wear and tear standards. If you were unaware of these terms when signing the contract, your PCP agreement may have been mis-sold.
How to Identify a Mis-Sold PCP Agreement: If you believe you may have been mis-sold a PCP agreement, consider the following questions:
- Did the dealer or broker disclose their commission to you?
- Were you made aware of the interest rate and how it was calculated?
- Did the dealer or broker fully explain the terms and conditions of your PCP agreement?
- Did the dealer or broker explore alternative finance options with you?
If you answered ‘no’ to any of these questions, it’s likely your PCP agreement was mis-sold, and you may be entitled to compensation.
How SortMyCash and Chan Neill Solicitors Can Help: At SortMyCash, we’re dedicated to helping you claim compensation for mis-sold PCP agreements. Our partnership with Chan Neill Solicitors ensures you receive expert legal guidance and support throughout the claims process. We offer a No Win, No Fee service, so you only pay if your claim is successful.
Begin your PCP claim journey with SortMyCash and Chan Neill Solicitors by completing our quick and easy online form. Our team of experts will assess your case and guide you through the process, helping you secure the compensation you deserve for your mis-sold PCP agreement.
