Such is the nature of business that people tend to cut corners, scamming people in the name of contracts. And when you do end up financing a car through a fractional ownership strategy known as Personal Contract Purchase (PCP), such scams sound different. But many are outraged to learn of the ways they were misled. If you are one among the many who wish to seek legal help, Legal Assist specializes in cases related to these kinds particularly. But I digress, how is all this related to PCP and how can I benefit from it? Well hold tight as we review the various aspects including the meaning of PCP.

What are the Terms of a PCP Contract?

Whether financing or leasing, PCP contracts are quite simple to understand as they revolve around a fixed price and therefore are common in the automotive industry especially in the UK. In fact, leasing together with a fixed price is even common for PCP contracts. In case you choose to buy the asset completely rather than selling it off after the contract, it is important to note that leasing begins with a capitalize lease whereby after parting with a fraction of the value, you commit to paying monthly premiums. Now to reiterate, these agreements do not end there as you have the option to pay for a Car entirely at the end of the agreement or simply trade it for a new one.

Is it possible to pay for any car through PCP at the start?

The idea is ludicrous from an investor's point but yes, it is possible to never pay for a car again. That however entails paying a balloon payment at the end of the agreement which can be feasible for some.

But if a balloon payment sounds like a gamble to you then you have the option to forgo that entirely by paying an ongoing monthly premium. An installment plan for an agreed period is also an option. And finally, a reasonable upfront payment can also be made if seeking a lower advance rental payment. These strategies garner the attention of multiple investors.

PCP agreements are great as they provide Monthly payments at the cost of a fraction of the value. However it must be noted that the payments are not beyond the depreciation of the asset acquired during the term which is why they appear far more enticing than they actually are.

Furthermore, Meant for renters, these contracts are perfect for the automotive industry but suit the needs of only a selected few.

1. Final Options

As the contract matures, you have a few choices to make. These are:

Discharge the balloon payment in order to retain ownership of the car

Surrender the car

Replace it with a fresh PCP contract.

What Are PCP Claims?

PCP Claim originates when consumers come to know about having been mis-sold the PCP agreements. A mis-sell occurs when any financing entity, be it a dealership or training agency, can explain the terms, conditions and costs which are to be put into the contract.

Common Reasons for PCP Mis-Selling

1. Lack of Transparency

All such consumers must answer the question as to whether they were provided with all relevant particulars such as interest rate or the final payment amount.

1. High Interest Rates

Certain clients were charged with exorbitant interest rates without any proper explanation being given.

1. Commission Payments

If you’re not aware, auto dealers are paid a commission for placing clients into PCP agreements. Not most consumers were informed which coverage increases predisposed consumers

1. Misleading Terms

Any type of fee that isn’t included in the initial communication, or a terminology that is not easy to understand, or conditions that are vague always works in favor of the sellers.

1. Mileage Restrictions

Some consumers were not warned about excessive charge for exceeding mileage limits, even though the mileage limits could incur a cost.

Who Can Make a PCP Claim?

In case you have financed your vehicle, which was sold under a PCP agreement, and is apprehended to be a mis sold product, you are entitled to making a claim. This applies if:

The other party breached the conditions in the agreement.

The dealer failed to adequately state how commission was involved in the transaction.

There was false information provided about the outgoings and repayments.

How to File a PCP Claim

Step 1: Check with PCP Agreements

Dispute the clash with the parties involved in terms of payments and out of order payments.

Step 2: Present Supporting Documents

Bring in the necessary set of documents for the PCP deal such as emails, records of payments, and contracts.

Step 3: Inform Legal Assist

Legal Assist offers a broad variety of components we guarantee strengthen your case.

Step 4: Submit Your Case

We will take care of the formal correspondence with the dealer or finance company on your behalf.

Step 5: Claim Compensation

Our aim is to make sure you are satisfied and compensated either by a refund or a reduction in payments.

What Compensation is Available?

As a part of PCP claim a person can claim the following:

Interest that is overpaid

Charges or fees that are unknown

Costs for any commission contracts that are unjust

Profit losses or expenses because of false advertising or other such terms

Common Signs that PCP Sale is Not Ideal

1. Lack of proper term description

Did the salesperson simply articulate the terms without crafting to explain what you may understand?

1. Additional costs that were not explained

Were there costs or a fee that came up that had you baffled on some occasions because it wasn’t mentioned to you?

1. The Comfort Payment Being Excessive

Was the balloon cost too high when looked at alongside the vowed worth of the car?

1. Missed Commissions

I did try to question whether the dealership earned some form of a commission from the PCP deal, but they did not answer.

1. Being Rushed to Sign

Did you feel quite a lot of rush in signing the deal without being given enough time to read the documents?

Procedure to File for a Claim for Mis-Selling of PCP and Help from Legal Assist

Legislation relating to PCP and other unfair terms can seem troublesome to understand. We are here to help you - The Legal Assist:

1. Free Assessing of your Claim on the Phone

Free claims assessment is available to you, but only if it’s genuine.

1. Financial Risk is Non Existent as This is a No Win, No Fee Policy

A ‘no win no fee’ policy is how it is, and it means that you’ve got nothing to lose in terms of finances.

1. Negotiation Quotient is Very High

Working on a negotiation basis with dealership and finance companies is what our team’s expertise is.

1. Comprehensive Support Material

Currently, there are collected several documents and structured all necessary paperwork.If you have any access problems to certain web pages or blocked content please, get in touch with our support team. We’ll resolve any issues you may have, and provide you with all necessary assistance.

Success Stories

There are personal stories of our clients who succeeded in filing complaints against the brokers regarding the PCP claims:

A customer reported recovering £3,000 on account of commission charges hidden in a PCP contract terms.

Another case arose once when a client had compensation paid when his dealer had failed to inform him about commission he received.

A cancellation of an overcharged insurance on mac was settled and the customer is able to save lots in the long run.

Tips for Avoiding PCP Mis-Selling

1. Read the Fine Print

There are risks in transacting business with unprofessional brokers who glibly assure returns. Best to read everything because it is a legal possibility for them to back out of whatever deal made.

1. Ask Questions

Get clarification on any aspect of the deal that appears to be vague or unclear to you.

1. Compare Deals

The buyer should explore various places for better prices and availability of the cars.

1. Seek Expert Advice

If you have no prior experience with these contracts or works with various cars companies, it is better to consult the professionals like Legal Assist before signing it.

FAQs About PCP Claims

1. How long does it take to process a PCP claim?

The claim can be endorsed by other departments like underwriters, marketing or finance. It varies as per claims but its preferable to finalise within some months.

1. Can I claim it if I've already paid off my PCP agreement?
2. Do I require a lawyer to submit a PCP claim?

It is not compulsory, but it is to assist and improve your chances of Legal Assist working with experts.

1. If my claim is rejected, what should I do next?

I will reassess that decision and if appropriate, will hope to take additional action including a law suit.

1. Should there be a time limit imposed on filing a CPA claim?

Yes, you basically have six years from the date either: the agreement was made or the date on which you found out about the mis-selling.

Concluding Remarks

If indeed you feel that you have been the victim of mis-selling of PCP or any agreement, it is prudent also to seek the assistance of legal experts at the earliest. Or if you believe you’ve been mis-sold a PCP agreement, contact us – do not wait. We’re here to tackle the issue professionally and legally so the consumers get heard. Together, we will seek justice.