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PCP or HP?
Have you ever purchased a car on finance?
Well, I guess so. Residing in the UK and owning a car on finance is the only way out. Britishers prefer cars on finance. Many leading car brands, like Ford, Audi, and BMW, provide car financial services to the people in the UK. Ford is a well-known car brand with an established consumer market. It has been operating in the automobile industry for 120 years. Ford customers buy cars on PCP or HP finance. PCP is the common car purchasing mechanism in the UK.
A Personal Contract Purchase (PCP) is a car financing agreement that is considered better and more flexible than a Hire Purchase (HP) agreement. A PCP contract allows customers to make monthly deposits at a lower rate than an HP contract. It also offers three end-of-term options to retain, return, or exchange the car, which are not available in an HP agreement. However, in case of mis-selling, the customer can always apply for a refund and make a Ford PCP claim.
Deal or Mis-sold?
Now, you must be wondering about a mis-sold car deal. Mis-selling is when the seller does not inform the customer about the details of the car financing agreement. In a PCP contract, the customer should be informed about the final balloon payment. This is an optional payment that is due when the customer wants to retain the vehicle. It is also known as Guaranteed Minimum Future Value (GMFV). It is a huge lump sum amount, and all customers should be informed about these payment options by their lenders or car dealers while signing the PCP contract. If the lender or the car dealer does not inform the customer about this option, then it can be considered as mis-selling.
Likewise, it is the utmost duty of a car dealer to inform the customer about the best financial products that are suitable for his needs. Otherwise, it may lead to financial stress, and the customer can make a PCP claim Ford.
Furthermore, customers should also be aware of the additional charges that may occur at the end of the contract in the form of mileage restrictions and wear and tear costs. If the customer was not informed correctly about the car’s condition, this may lead to claims compensation.
Lenders and dealers should also inform the customers about the interest rates and hidden commissions charged on the deal. Usually, this breakdown is mentioned on the PCP contract, but if not, then customers should be aware of the commissions made on the deal. According to the Financial Conduct Authority (FCA), many customers who purchased cars on PCP or HP finance before 2021 were overcharged on their contracts. The customers have filed mis-selling complaints against their lenders and car dealers, including Ford. Therefore, if you purchased a car on PCP finance from Ford before 2021, you can also make a Ford PCP claim. However, you should have a valid mis-selling reason.
Lenders often charge high interest rates or hidden commissions as part of the Discretionary Commission Arrangements (DCAs) to increase their profit gains. The FCA has banned this practice since 2021. Therefore, PCP or HP deals that were signed before 2021 can be checked for mis-selling.
PCP Refunds
Here is a simple way to identify your mis-sold PCP contract. If you purchased any car on PCP finance before 2021, you can be mis-sold on the deal. PCP contracts are complex and tough to understand by the public. Therefore, lenders and car dealers must inform and educate all customers on the complications of the PCP deals. If not explained properly, the customers may seek legal advice or professional consultation on the mis-sold deals.
The refunding process is simple and easy. All you need to do is gather relevant details about the contract. You should have a copy of your PCP contract, the receipt of all monthly payments, e-mails, and other marketing materials that were shown to you as part of the agreement. Any discrepancy in the contractual terms should be highlighted for the PCP claim process. This can be done with the help of PCP claim experts.
As per the FCA investigation, many people are seeking help from professional PCP claim experts in the UK. The claim experts are trained to tackle all sorts of issues in the refunding process. They do not charge any fees for the claim process. They offer free consultation services to all Britishers. Thus, if you are worried about your Ford PCP claim, you may seek professional advice from a well-reputed claim experts in the UK. Many have set up an online claim-checking facility on their website to allow users to access their claim eligibility for free.
