Understanding Your Rights | Land Rover PCP Claim Explained

nderstand your rights and processes to file a Land Rover PCP claim. Discover the common mis-selling issues and steps to file effective Land Rover PCP claims.

Land Rover has maintained its loyal clientele throughout the years. People who purchase Land Rover will purchase it despite its high price. Therefore, the company offers its financial services as well. There are other car financing options available to customers as well. 

Many car financing companies offer PCP and HP deals to customers. PCP is preferred over HP due to its flexible payment options. A PCP agreement is a well-known car financing agreement available to all Britishers. However, some lenders have misused its popularity to gain personal benefits. Therefore, the Land Rover PCP claim is trending in the UK market.

Why Make a Land Rover PCP Claim

Whether intentionally or unintentionally, some car dealers and lenders exploited basic consumer rights. They took advantage of and increased interest rates on PCP deals to earn high commission rates. Many customers were not aware of it. Thus, it resulted in a mis-sold PCP deal. 

This is true not only for Land Rover buyers but all car purchasers. Individuals who bought BMW or Mercedes on PCP deal might have been mis-sold PCP BMW or might be looking for a Mercedes PCP claim. Here is a basic criterion to identify a mis-sold finance agreement:

  • Misrepresentation of Terms:

The sales team misrepresented the PCP agreement. They did not inform the customer about the interest rates, balloon payments, or other mileage limitations. Balloon payment is the final payment also known as GMFV (Guaranteed Minimum Future Value). Customers who opt to purchase the car at the end of the contractual period have to pay this amount to own it. 

  • Hidden Fees & Charges:

The customer was not informed about the additional expenses that he might have to pay at the end of the contract. These typically include, wear and tear costs, and other mileage restrictions. In case of exceeding mileage limits and other conditions, the customer will be charged high costs at the end.

Furthermore, many dealers and lenders do not disclose their set commission rates beforehand. They do not show the complete breakdown of the total cost and may charge a higher interest rate than usual. These hidden charges or Discretionary Commission Arrangements (DCAs) were common between the years 2007 and 2021. But now, after the great PCP scandal, FCA has abolished such practices to protect consumer rights.

  • Unsuitable Financial Product:

Occasionally, an HP agreement is better than a PCP deal, based on the customer’s needs. However, not all lenders or car dealers suggest such options. Not giving accurate financing options to the customer is also a cause of mis-selling.

  • Inadequate Affordability Checks:

The lender or the car dealer is supposed to run a complete financial affordability check on the customer to evaluate his financial standing before signing any agreement. If the lender or the dealer fails to do so, the customer might face financial stress. This is also considered a root cause of mis-sold PCP deals.

  • Failure to Explain the Agreement:

There are some differences between an HP and a PCP agreement. If the lender failed to explain to you the terms and conditions of the PCP contract, you could be mis-sold on the PCP deal. A PCP deal offers three end-of-term options. Return, retain or renew. Every option has separate implications. Customers should be informed of all three options so that they may choose the best deal accordingly. 

How to File for Mis-Sold PCP Compensation

PCP and HP Claims experts can help you file for a mis-sold PCP compensation. The Land Rover PCP claims process is simple yet long. Our team of experts is trained to tackle every obstacle in this process swiftly. 

You only need to gather information about your PCP contract to make a claim. FCA has declared that most of the PCP and HP deals signed between 2007 and 2021 were mis-sold. Therefore, any of you holding an old PCP contract can also make a claim.

After collecting all information, documents, paperwork, marketing materials and e-mails, you should then identify the reason for mis-selling. If you purchased a Land Rover in 2020 your eligibility depends on the grounds for your claim. If the dealer failed to inform you about the balloon payment, hidden commissions or mileage fees, you can claim it. It does not matter whether you have paid all instalments or not. If you are right, you can seek a refund. 

The next step in the PCP claim process is to contact the dealer or the lender. Check whether your dealer is ready to resolve your PCP claim issue in a friendly manner. If not, you may proceed with the Financial Ombudsman Service (FOS). It also helps in resolving financial issues between individuals and businesses. You should provide all relevant information to FOS as well.

On the other hand, if you are unsure about the process and need professional help, PCP and HP Claims experts are always ready to assist you. We provide free of cost service. We charge no fees until you win a refund. Our free PCP claim checker is available on our website. We deal with all sorts of mis-sold cars.

Tips & Tricks for Effective PCP Claims

Here are some tips for filing effective PCP claims. 

  1. Be clear and concise
  2. Provide evidence
  3. Hire PCP and HP Claims expert
  4. Follow up regularly

Filing for a refund on a mis-sold car may appear as a daunting task. But if you have a legitimate reason for your claim, supporting evidence and a great claims management team, everything will work out the best for you. It is important to note that it is your right to file for a mis-sold deal. You should understand financial agreements before signing, and you have a right to get fair and transparent treatment.