Understanding Your Rights: How to Make a Car Finance PCP Claim

What is Car Finance?

Have you ever dreamt of buying your own Audi? Many have!

Most of the Britishers bought their dream cars on car finance through various banks and lending companies. It is a common practice in the UK to purchase cars on finance via famous lenders. Some purchase car finance deals via the dealership, and some make deals with other lenders. Whatever suits them best, they make the deal. That is why car finance is a popular customer choice in the UK automotive industry.

However, recently, customers have made some allegations about their old PCP and HP contracts. Many customers claim that they have been mis-sold on their previous car finance deals. This is a matter of concern, and the Financial Conduct Authority (FCA) is investigating the matter. For now, they have banned the practice of Discretionary Commission Arrangements (DCAs) to avoid overcharges on car finance agreements. 

The mis-selling issue has gained popularity over the time period. Many customers are raising their voices and filing for refunds on their mis-sold PCP contracts. Therefore, if you purchased an Audi on a PCP deal, you can also make a mis-sold PCP Audi claim against your lender. 

How is a Car Finance Mis-sold?

Before moving on, it is integral to understand the process of a car finance agreement. The two car finance contracts are 

• Personal Contract Purchase (PCP)
• Hire Purchase (HP)

Both of them are car financing agreements. In a Hire Purchase agreement, the customer becomes the owner of the car after paying monthly instalments, whereas in a PCP contract, the customer is provided with three different options. 

The customer can either,

• Retain
• Return
• Exchange the car

Only PCP contract holders can benefit from these options at the end of the contractual term. The customer can return the car after the term. He can retain it by paying the optional final payment or the balloon payment. He can exchange it for a new car by signing a new PCP deal. These options are available for all PCP holders. That is why most people opt for PCP finance. It offers a great range of flexibility to its contract holders. 

But sometimes, due to lack of information or mis-selling, the PCP contracts can be mis-sold. For instance, if the customer was not aware of these end-of-term options or the final payment plan, he can claim a refund against his dealership or the lender. The final payment is a huge lump sum amount. It should be mentioned to the customer by the sales person at the time of making the deal. 

Similarly, not all customers are aware of the complexities of a PCP or HP contract. Therefore, the salesperson should elaborate on the terms and conditions of each car finance option and offer the best deal suitable for his needs. If he does not consider the financial status of the customer and sells a deal that is not suitable for the customer, the customer can reclaim it. 

This is considered a mis-sold deal. 

Similarly, customers are not familiar with the additional costs of signing a PCP or HP contract. They should be informed by their lenders regarding the payment plans, instalment options, interest rates charged on the deal and the hidden commissions that are made on the deal. In short, they should provide a complete breakdown of the total costs of the contract. If they do not, then the customer can make a car finance PCP claim. 

If you purchased your Audi from Audi Financial Services and found out that you were not informed about the hidden commissions that were charged on the deal, you can make Audi car finance claims.

Anyone can make a car finance PCP claim against any lender if they think they have been unjustly charged on their PCP or HP contracts. 

How to Make a Car Finance Claim?

Thousands of people are making mis-sold car finance claims because they found out that they have been unfairly charged high commissions or interest rates on their deals between 2007 and 2021. Many lenders are getting hundreds of complaints for refunds. The FCA banned the practice of DCAs in 2021 to handle the issue professionally. However, the investigation is still ongoing. 

If you are also concerned about your PCP or HP deal, you can seek professional help from PCP and HP claim experts. There are many claim experts who are actively providing no-win, no-fee service to customers who have been mis-sold on car deals before 2021. There are higher chances for them to claim a refund. 

The PCP claim process is simple and easy. All you have to do is gather your contract details, receipts, documents, and materials to file a report to your lender. If they do not respond on time, you can talk to your solicitor to proceed with your claim request. This may take some time, but it is worth it. So, check your claim eligibility right now.