Understanding PCP Claims:

Personal Contract purchase (PCP) claims are becoming increasingly popular in the world of vehicle financing because of their flexibility and lower monthly installments. As more customers opt for PCP claims , understanding this complicated process of claiming may be daunting, here's a complete step by step guide to it .  

Let's delve into the world of PCP claiming to provide all the information you must know before applying for it and tips and advice regarding it.

What is a PCP Claim?

It is basically a vehicle financing option enabling you to drive a new car by only paying a fraction of monthly installments. At the end of the agreement, you have several options which include either paying a full balloon payment and owning the car at the end of the agreement, returning the car or trading it with the new car. Unlike other financial aid loans , PCP is beneficial because of its lower monthly payments, making it an attractive choice for potential customers. At the start of the contract the customer pays for almost 10% of the car's value, the rest of the payment is divided into different installments for about 24-48 months. However the key feature of PCP is the balloon payment at the end of agreement which generally represents Vehicle Guaranteed Future Value( GFV).

       Why PCP CLAIMS?

 These claims arise  when the consumers feel that they were mis-sold the agreement.

•  False information: Customers may be misled about their agreements including total costs, interest rates and final balloon payments.

• Excess Mileage limitations: There is always mileage limitation of driving the vehicle, exceeding these limits will definitely result in significant charges.

• Fair wear and tear: At the end of the agreement, the vehicle is expected to be in a condition deemed by the finance company. Disputes often arise over what constitutes fair wear and tear.

How to determine if you have a claim:

If you believe that your PCP agreement was mis-sold by finance providers, consider the following steps: 

1. Review your agreement: Understand your contract for clarity of balloon payments or other conditions.

2. Contact your finance provider: Reach out your finance provider for clarification purposes.

3. Seek legal advice: If you are still unsatisfied then seek legal assistance by hiring legal experts in PCP.

4. Consider Escalation: If the problem remains unsolved then consider Financial Ombudsman Service (FOS) for an independent review.

Can you make a claim?

Yes you can surely claim if you entered into PCP agreement for either new or used vehicles between April 2007 to January 2021, then you may be eligible for the claim compensation. This includes both active and completed agreements.

How to make PCP CLAIM:

Applying for a PCP claim may be a daunting process but it's easier than you think. The step to step approach towards it is mentioned under:

Review the agreement carefully: Make sure you understand all the conditions mentioned in the agreement, paying attention to all the details regarding mileage limitation, final balloon payment, and monthly installments.

Gathering documents: Collect all the relevant documents including correspondence with the dealer or finance company or any other documents that influenced your decision.

Contact the dealer: Before taking a legal action and applying for a claim it is advisable to contact your finance company. They may offer a satisfactory revolution.

Seek legal advice: If the issue remains the same consult legal advice from solicitor or consumer rights organization experienced in PCP claims.

File a complaint: If the issue remains unsolved consult the Financial Ombudsman Service to escalate the claim for further investigation.

Common mistakes to avoid:

While making PCP claims it's essential to avoid the following mistakes so that you can boost up your success rate. 

            Here are some key mistakes that are so common that most of the customers make and you must avoid them. 

• 

  Not reading agreement carefully: Make sure you carefully read and understand all the terms and conditions mentioned in the agreement before signing it.

• 

  Not gathering evidence: Gather sufficient evidence that will support your claims.

• 

  Not seeking professional advice: Before making a claim seek professional advice from solicitors or other legal experts of Pcp claim.

Potential outcomes:

The potential outcome will depend on the specific circumstance of your claim. You may be entitled to compensation , a refund or other form of redress.

Potential compensation:

The average payout for mis-sold PCP agreements are substantial. However the individual could reclaim around £5318.25  on average. The specific amount will be depending on various factors like the vehicle's value and how much the dealer inflated the interest rate.

Future of PCP CLAIMS in UK:

As consumers are becoming increasingly aware of their rights, the number of claims are expected to rise. These claims provide  opportunities to the individuals who want to drive new cars after every few years without paying together in fair monthly installments . But it comes with the mileage limitations limiting the long distance drivers.

Conclusion:

Understanding completely the PCP claims is very crucial in today's automotive financing landscape. If you believe you have been mis-sold car finance , you can claim to review your contract and seek legal advice.

Legal assist will provide you with all the details you require for applying for a claim and to ensure you have a smooth claiming journey and get relevant compensation for it.