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PCP Claims Are On The Up – And You Could Be Owed Hundreds

Following the diesel emission scandal, the new kid on the block is PCP claims, which could allow millions of motorists around Britain to claim thousands on their car finance deals, although hundreds is more likely, explains one expert.

Gavin Cooper, co-founder of Claims Bible explains that “We are seeing more and more PCP finance claims go through, because people have been mis-sold or overcharged on their car finance.”

Around 90% of car purchases in the UK are completed using PCP finance, which includes a deposit (usually around 10%-20%), a monthly fee for 3 to 4 years with the option to give back the car at the end of the term or make one large balloon payment to own the vehicle. This option has been the standout preference amongst Brits compared to buying a new set of wheels through Hire Purchase (HP), leasing or outright.

“The problem with PCP and car dealerships as a whole is a lack of transparency,” explains Cooper.

“Two people can go into a dealership to buy a car and leave with two completely different deals. The dealerships have wiggle room to charge different rates, which are often commission driven. Similarly, with dealerships often trying to meet sales targets, the price of a car can be significantly reduced if that target is approaching, meaning someone would have certainly overpaid earlier on.”

“This approach is not in the spirit of fairness and transparency and other guidelines you see for financial products that are FCA regulated, such as personal loans, credit cards and even mortgages.”

Are There Certain Things That Help You Receive PCP Compensation?

According to the MoneySavingExpert website, there are certain things that could make you eligible for compensation from your original PCP deal, although the compensation is likely to be a few hundred pounds, not thousands per see.

Certainly, if you have been unable to pay for your car and struggled to meet car payments, this could suggest a lack of affordability checks by the dealer, especially if your income and employment were not checked.

If you have incurred additional interest due to missing repayments and this negatively impacted your credit score, this could be viable for compensation.

Additionally, if you found cheaper offers elsewhere since or sooner after or equally found a hike in your insurance policy as a result of the deal offered – or because this was upsold to you, you could be due compensation.

How To Make a PPC Claim?

MoneySavingExpert offers a recommended template letter which you can send directly to your car dealership where the car was purchased. You will need to have information and documents relating to the purchase of the vehicle and having all this information documented and in writing is the next step.

You can also use a claims management company to help you process the claim, and they will often be more experienced in getting a fast response and payout, since many work on no win, no fee. But note, that a claims management company can command a commission of 10%, 20% or higher.

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