In the UK, many people have opted for Personal Contract Purchase (PCP) agreements to acquire vehicles. Given that a number of issues may develop in such agreements, consumers may make a claim. The team at Legal Assist is more than willing to counsel and help you understand everything needed in order for you to file a claim.
What are the main features of PCP agreements?
A PCP agreement allows an individual to purchase a car while paying a small amount of cash at the initiation of the transaction and owing relatively bigger amounts throughout the period. After a specific period, the consumer has three main options available to them The options include:
Give the vehicle back
Pay the last month's payment, termed as a "balloon payment," to acquire the car thenceforth.
Exchange it for a new vehicle.
While PCP agreements may be understood as straightforward, they sometimes give rise to problems or disputes producing claims.
Typical Problems Associated with PCP Agreements
Some of the most common complaints concerning PCP agreements that any user will experience are:-
Mis-sold Agreements
Because they have limited knowledge regarding the PCP agreement they are entering, consumers tend to be sold agreements by sales representatives in a misleading manner, as for instance:
The aggregate amount of money to be paid over the entire life of the agreement.
How much is to be settled in the balloon payment at the end of the term.
The annual mileage limit and potential charges for excess mileage.
Hidden Costs
Any fees that were not agreed upon might be surprising, especially if the terms were not sufficiently covered in the first place.
Pricey Cars
PCP agreements often tend to attract businesses that offer overpriced cars to customers in terms of an agreement.
[Redacted] Breach of Consumer Rights
If you had your rights as a consumer violated and someone makes you an offer and you are threatened to accept it, you may be in a position to make a claim.
What is a PCP Claim?
When you want to formally raise a complaint regarding the PCP agreement that you were sold due to unfair selling practiced by a dealer or a finance company one can do so by making a pcp claim.
Who Can Claim PCP?
If you were in a PCP agreement while in the UK and any of the following scenarios applied to you, you might be in a position to make a claim:
You were misinformed about or did not fully understand the details of the terms of the contract.
You were compelled to sign the agreement.
The price of the car was overstated.
You had to pay unforeseen charges.
At Legal Assist, we dedicate ourselves to assist people like you through the claim's procedure.
Steps to Initiate a PCP Claim:
Examine Your Agreement
Carefully assess your PCP contract. Search for anything that can be considered unjust and unclarified terms.
Procure Evidence
Collect all the items which can serve as anything evidencing the purchase you made. This could be any of the following:
The initial agreement.
Emails or other communication with the auto dealer or finance company.
Receipts of payments done.
Consult with a Specialist
We at 0 will take up this role. We will investigate the case without charging any perusal fee, after the conclusion will advise you in relation to your legal position.
Lodge Your Complaint
You will first be required to complain formally in writing to the dealership or the finance company. Should they fall short of attending to the complaint, you can then take the matter up.
What Makes Legal Assist Stand Out?
Legal Assist seeks to defend consumers’ rights. When you partner with us, you receive the following benefits:
Professional Help: The team is very much knowledgeable about PCP claims.
No Payment Until You Receive Your Claim: You are charged only when the claim is successful.
Reduced Stress: Allow us to bear the strain and direct your attention to the primary matter.
The Importance of the Financial Ombudsman Service (FOS)
In the event you are unable to have your claim settled by the dealership or finance company, then you may bring the matter to the Financial Ombudsman Service (FOS). The FOS has members who have no ties to various businesses and institutions which require the services of financial consumers.
What Steps to Take When Filing With the FOS
Fill up the public online complaint form.
Attach necessary documents as evidence in support of your claim.
Wait for the response from the Ombudsman.
Measures to Enhance the Chances of Winning a PCP Claim
Maintain Order
It is wise to keep all written communication and documents concerning the PCP agreement together.
Don’t Put It Off
Once you discover an issue, don’t hesitate to resolve it promptly. Time limits have been placed on making claims.
Seek Professional Guidance
Managing the process of claims by yourself can be very hard. Legal Assist is the best way to go.
What Are the Next Steps After Filling a PCP Claim?
Filling a PCP claim involves various steps after submission and they are mentioned below.
Step 1: The dealership, underwriter, or funding company receives your grievance.
Step 2: A direct or a resolution offer could be extended, or the complaint could be rejected.
Step 3: Failure to resolve the issue leads to the escalation of the matter to FOS.
Step 4: And if claims reside in the successful group, there could be a refund. Payment amounts could also be lowered or equitable reimbursements provided.
How Legal Assist Helps You Claim PCP
Primarily we work towards getting the maximum benefits for our clients, and so we'll.
Examine the specifics of your case.
Interact with the dealer or the financers on your behalf.
Enter into the proceedings should they move to FOS.
PCP Claims: Questions and Answers Section
Can a PCP contract be terminated before maturity?
Yes, a PCP Contract can be voluntarily terminated in the United Kingdom albeit some repayments might have to be rendered depending on the installments completed at that juncture.
How much time is required to file a claim under PCP?
The time period is relative, however, in most instances the resolution can take from 6 to 12 months.
What reimbursement would I receive after the claims are such that they are defined as successful?
In case the claims are successful, reimbursement could be received for the outstanding excess payment as well as for equal reduction of the remaining payments.
Is there a deadline set in place for the filing of a claim?
Certainly, it has been indicated that there is a window of up to 6 years from the signing of the agreement in which a claim can be filed.
How would I know if I have mis-sold a PCP?
Some of the signs of how a loan may have been mis-sold include imprecise terms, hidden costs, or coercion to sign the agreement. Legal Assist can evaluate your case at no cost.
Final Comments
While PCP claims may look like a headache, they are actually possible to handle with a good amount of support. Legal Assist would be there to ensure that you get back what was yours. Do not allow an unfair PCP agreement to stop you from achieving an objective – contact us now and we can help you seek justice.
