If you are a Nissan owner who purchased a Nissan on PCP finance before 2021 then you can be eligible for a Nissan PCP claim. The Financial Conduct Authority (FCA) has witnessed increased complaints about cars bought on PCP and HP finance between 2007 and 2021. The customers complain that they were mis-sold on their car deals, and they want a refund. The authority is investigating the issue and has recognised that the lenders and the brokers charged Discretionary Commission Arrangements (DCAs) on the cars bought on finance. They banned the practice of DCAs after 2021 and are now evaluating cases for PCP claims.
People who purchased cars on finance from various lenders, including Black Horse and Close Brothers Finance, can also claim a refund. Close Brothers PCP claims are also trending in the UK’s financial market. Let us discover some details on how car financing works and how is a PCP finance mis-sold.
Introduction to Car Finance Options
There are usually two types of car finance agreements. Personal Contract Purchases, also known as PCP contracts, and Hire Purchase, also known as HP contracts, are the most famous car financing solutions in the UK. Britishers have been buying cars on finance with the help of these agreements, which are tailored to varying customers’ needs.
In a PCP contract, the buyer typically gets a car with an initial deposit followed by monthly payments and then an optional final balloon payment. In contrast, in an HP contract, the buyers make an initial deposit and then regular monthly payments. Once the entire costs are paid off, the buyer becomes the owner of the vehicle.
However, there are some notable distinctions between the two. A PCP contract offers more flexibility and end-of-term options than an HP agreement. In a PCP car finance agreement, the buyer signs the deal by paying an initial amount; later, he makes small monthly instalments for two to three years, and then he is given three different options.
If he wants to own the car permanently, he should pay the remaining amount, which is a final lump sum, also known as Guaranteed Minimum Future Value (GMFV) or the balloon payment. Once it is paid off, he becomes the owner of the car. If he wants to return the car without making any payment, then he is free to do so. Thirdly, the buyer can exchange the car for a new model by signing a new PCP deal. These three options offer flexibility in PCP contracts only, which is why most people opt for PCP agreements.
However, as per the latest news by the FCA PCP mis-selling claims are gaining attention. Therefore, let us discover the reasons for PCP mis-selling.
Identify Reasons for a Mis-Sold Car Finance Contract
Mis-selling happens when the lender or the broker mis-sells the PCP or an HP contract to the customer with some hidden gains. In car finance agreements, the lender and the broker are allowed to gain a certain amount of profit on each sale. However, they overcharged the customers on each PCP contract to gain more profits. These hidden commissions and hidden fees were not disclosed to the customers, thus resulting in the mis-selling of the PCP contract. People who bought a Nissan on a PCP contract can also apply for a Nissan PCP claim.
Furthermore, there are some other reasons for mis-selling as well. Such as
- The lender, broker, or car dealer failed to explain the terms and conditions of the PCP contract.
- They did not explain the end-of-term options.
- The customer was not aware of the final balloon payment.
- The customer was not given the complete breakdown of all costs.
- The customer was put under pressure to sign the PCP deal.
- The salesperson did not provide the best financial solution to the customer.
- The customer was not informed about the car’s condition and other restrictions.
- The customer did not get any financial advice from the provider.
- There were discrepancies between what was said and what was written in the agreement.
These are some familiar reasons for mis-selling. If you encounter any of the above-mentioned mis-selling problems, you are free to make a PCP claim with professional PCP claims solicitors.
Learn How to Make a PCP Claim
At PCP and HP claims, we have a dedicated team of experts to analyse, evaluate and solve your mis-selling issues. Our PCP claim experts are trained to tackle all sorts of car financing issues especially mis-selling issues. If you purchased any car on PCP or HP finance from any lender or broker before 2021, you can make a PCP claim with us.
Our PCP claim process is simple and easy. All you need to do is to contact us so that we can check your claim eligibility. We will understand your case, find the reason for mis-selling, and gather evidence to support your claim. Then, we will forward your complaint to the respective authorities. It may take some time to get a response, but we will keep you updated. You do not need to worry about anything. We will do all work for you. Our team is updated with the subject and handles every aspect of the claim process legally and professionally. We do not charge any fees until you win your money back.
So book your free consultation today with our PCP claim experts.