In recent years the PCP claims have gone up due to an increase in the number of car buyers who know about the misrepresentation that may have occurred during the vehicle financing agreement. Somehow, PCP finance agreements turned out to be the most preferred way of acquiring a car among many people but they turned out to have additional costs, gray areas, and misleads. Many consumers are entitled to compensation if they feel that they were offered unjust terms. In this article, we will focus on what such claims under PCP stand for where people can ascertain if they qualify and ascertain how Legal Assist can resolve issues of compensation for the affected individuals.
What Is A PCP Agreement?
A PCP, or personal contract purchase, allows the borrower to have ‘use’ of a car over a set period but not a purchase, however at the end of the hire purchase period there is an option to purchase it. In most cases, a certain amount is deposited, a number of set amounts is paid on a monthly basis, and then at the end people have the option of either relinquishing the vehicle, exchanging the car for a new one under another PCP financing plan, or paying a lump sum to possess the vehicle free of any encumbrance.
Why is There an Increase in PCP Claims?
Some dealerships and financiers have been accused of not explaining fully the terms of the PCP agreements to the customers, and that is not the customers fault. Often consumers are surprised with having to pay high- interest rates or payments they didn’t foresee, or they may not be fully comprehensively briefed concerning the cost of the car. As a consequence people who would likely never have claimed compensation have increased PCP claims having been mis-sold PCP deals.
Key Indicators That You May Have a PCP Claim
Are you in doubt about whether you have a case? Observe these common features below. If you experienced them, your PCP agreement may have been mis-sold to you:
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The Terms Were Not Adequately Explained
You could have a case if the dealer or finance provider did not explain any of the terms such as the rates or any balloon payments clearly.
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Instant Buy or Agree Pressure
Did you sign a PCP agreement under pressure without the opportunity to properly read through everything? It’s not uncommon for high-pressure tactics to serve as the basis for a claim.
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Commission Not Disclosed
In the event that a dealer sold the PCP but did not inform you about the commission, this might have affected the clauses and the interest rate offered to you.
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Payments in Kind Cannot be Reasonably Made
If the dealer placed you on a payment plan that was beyond your ability to pay reasonably, it means you have mis-sold the PCP Agreement.
What Step Should Be Followed if You Believe a PCP Agreement Was Mis-sold to You
In the event any of the above indicators pertain to your case here is what you should do:
Step 1: Check Your PCP Paperwork
Don’t hesitate to examine your PCP contract in detail. Note salient points given about their interest as well as the balloon payment and any additional charges that are claimed.
Step 2: Support Evidence Collection
Make sure you have all related documents including any emails to and from the PCP dealer, the payment history and advertisement material, and so on.
Step 3: Look for Legal Representation
Speak to a representative of Legal Assist for a general review of your case. We will evaluate the particulars of your case, examine your specific contract and advise you on the immediate subsequent actions to be taken.
How PCP Claims Work
Predominantly, PCP claims are based on the assertion of mis-selling the agreement. If you were denied proper information or were provided incorrect information, you might be owed some money back. In many instances, banks choose to handle these cases without going to trial, however, you may require some legal assistance to receive an acceptable figure.
Examples of Damages You May Recover
In successfully case, a PCP claim can achieve one or more types of damages which include the following:
- Repayment of Borrower Interest
If any fee or some commission was withheld and as a result the borrower was subjected to high interests, then some, or the entire amount of that interest may be refunded.
- Payment of the Overstay Fee
You may be compensated for any additional payments made due to some extra unanticipated costs.
- Total Amount Not Fully Realized Initially Reducing The Amount Payable At The Time Of Sale Completion
With the capability of successful claim, sometimes the total amount payable at the time of sale completion can either be avoided or lessened.
How Long Will It Take to Get Settlement of a PCP Claim?
The concerned insurers take time in resolving a PCP claim depending principally on the sophistication of the claim as well as the level of cooperation received from the finance provider. Some cases can be triaged earlier and settled in a handful of weeks, while other cases, particularly those that require some extra documentation or where the provider contests the claim, tend to drag on for months.
Common Play of Issues in Filing PCP Claims
Considering the fact that a number of consumers have claims that are justifiable there are however some hindrances that can be encountered these include;
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Lack of Documentation
It would be hard to show that one was deceived or otherwise led astray in the absence of such documents. Search for all available files and evidence before deciding to file a piecemeal claim.
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Disputes Over Terms
For instance, finance providers may say that the terms in which all transactions were made were clear, meaning lack of such information could be the reason why careful consideration to experts like Legal Assist is necessary.
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Time Limits for the Submission of Claims
Existing in most agreements is a time limitation when a claim can be lodged, in this case a PCP claim. This is n6 that is the number of days counted from the time the agreement was entered into. Speed in doing this is very critical because should there be any delays then there would be a need to provide very strong sound reasons.
Why Use Legal Assist for Your PCP Claim?
Legal Assist centers practicing areas in relation to consumer claims, oblasts including PCP mis-selling cases. We conceive of the following ways in which we can assist our clients.
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Proper Assessment Of Your Case
In assessing the possibility of having a claim, we examine the PCP agreement and other relevant documents.
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One-on-one Assistance
Claiming a PCP can sound crazy. Our claims guides provide you with assistance in every stage of the claim to help manage your expectation and understanding of the claim.
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Communication With Providers
We talk to financial providers on your claim and seek to reach favorable results that amicably serve the purpose of the claim.
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Pay Nothing If You Lose
Thus, we think it is important to provide the public with legal assistance. It is important to note that we offer many clients the ‘No Win No Fee’ when their claim is clearly winning.
What You Should Do To Improve The Chances Of Your PCP Claim
Would you like to know how to improve your likelihood of success? Here’s a series of tips that could be of assistance.
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Do It As Soon As Possible
The earlier you make a claim the better. It helps in ensuring that you make your claim within the timeframes of the filing period and you do not have to strain to recall the facts of the case.
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Avoid Ambiguity in Documentation
No shortcuts! Make sure your documents are complete and well detailed. These are contracts, payment records and contracts, and other communications with the dealer or finance company.
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Be Honest and Transparent with All Stakeholders Including Your Clients
When addressing the case with Legal Assist, you should offer particulars even those that you think might be irrelevant. Transparency is one of the principles that helps us construct the strongest case.
The Future of PCP Claims From Consumers and Restrictions Imposed By FCA
With the increasing awareness among the consumers regarding the rights, the PCP claims are bound to rise. The Financial Conduct Authority (FCA) on the other hand has provided broader commission disclosure about the practitioners to help avert future cases of the mis-selling Pend. However if you have been affected, Remember you are not alone and help exists.
Conclusion
Though the PCP agreements help in enhancing the purchase of a car if however they are mis-sold they tend to incur heavy financial strains. In the case that you feel you have suffered losses due to misrepresentation of facts regarding your PCP agreement, the ability to take further action may assist you in recovering your losses while also restricting this behavior from going unchallenged. Legal Assist should be reached for further examination of your own case and options available to you.
Frequently Asked Questions
- How do I know if I have a valid PCP claim?
Generally, the valid claims involve situations involving murky terms and conditions, overbearing sales and marketing approaches or even undisclosed terms and conditions that lead to hidden costs.Suppress or overlook some of your high-pressure sales approaches or undocumented payments. Check your agreement or seek advice from Legal Assist.
- What can I expect as a compensation if my PCP claim is successful?
There is a range of compensation possibilities but in most instances there is a refund of interest or additional payments which may lower your balloon payment.
- Can Legal Assist help if the necessary documents are absent?
We will assist with what documents you have and request additional documents if we deem it necessary and even help you obtain them.
- What is the duration of executing a PCP claim settlement?
Typical timeline ranges from a few weeks to a few months considering the complexity of the case and the level of assistance from the finance provider.
- Is there a time limit for placing a claim for a PCP claim?
Yes, victimization for most cases of claims do not go beyond six years after the signing of the agreement, and so someone claiming should do so without wasting any time.
