Citroën is a French car brand which has been manufacturing cars since 1919. The automotive brand is famous for producing cars with the latest technology and innovative design, as well as comfort and safety. The most famous models of the brand are C3, C4 and C5. They are a popular customer’s choice because of their advanced technology, fuel efficiency and exceptional comfort.
If you purchased a Citroën on finance between 2007 and 2021, you might be mis-sold on car finance and may be eligible for compensation. According to the research, almost 90% of the cars in the UK are purchased through car finance deals. For example, if you own a Mercedes, you might have purchased it on PCP finance from Mercedes-Benz Financial Services.
Get a Citroën on PCP or HP Finance?
If you want a new Citroën every three years, you can get it on car finance deals. Currently, there are two types of car finance prevalent in the UK market: personal contract purchase (PCP) and hire-purchase (HP). A PCP contract is the most widely used car finance deal in the UK.
A PCP contract offers an initial depository amount, followed by a fixed monthly amount. The length of the contract varies according to the customer’s demand. It can be extended to a 48-month plan. The PCP contract has more options and flexibility than an HP car finance contract. At the end of the PCP contract, the customer has the option to pay the final balloon payment, return the car or exchange it for a new vehicle.
For example, you bought a Citroën on a PCP contract, and after two years of the PCP contractual term, you decided to return it to the dealership. You can return the car without making the final balloon payment, a huge lump sum, also known as a Guaranteed Minimum Future Value (GMFV). These options are not included in the HP agreement.
In an HP agreement, the customer pays an initial amount which is followed by fixed monthly instalments that are higher than the PCP monthly instalments. Once the entire payment is paid off the customer becomes the vehicle owner. There are no end-of-term options in an HP agreement. Therefore, most people prefer to buy cars on PCP finance.
It is essential for the car dealer, broker, or lender to inform the customer of the different types of car finance agreements. If they fail to do so, the customer can make a Citroën PCP claim.
FCA PCP Mis-Selling
In January 2021, the Financial Conduct Authority (FCA) found a series of mis-sold car finance deals. Many customers complain that they have been mis-sold on their Citroën PCP contracts. They claim that they were charged excessively high amounts as part of hidden fees and commissions. As a result, they want a Citroën PCP claim.
On the other hand, there are some other reasons for PCP mis-selling as well. Mis-selling happens when the seller misinforms the customer about the product or the contract. PCP contracts are complex and tricky to understand. Therefore, it is always recommended that the seller, dealer, or broker informs the customer about the terms and conditions of signing the contract. The lender should highlight all fees and commissions on the contract and provide a complete breakdown of the total costs of the agreement.
Furthermore, they should inform customers about the car’s condition and other mileage restrictions and about other financial options suitable for their needs. The customer should not be pressured to sign a deal without seeking additional advice. If the broker or the car dealer did not update the customer on the terms and conditions of the contract, it can be counted as FCA PCP mis-selling.
Best PCP Claims Solicitors
If you purchased a car or motor vehicle on finance before 2021, you can make a PCP claim with the best PCP claims solicitors. Our claim experts at Drive Back Financial are trained to facilitate you all the time. We have a team of experts who are working tirelessly to check your eligibility for the PCP claim.
Our claim process is very simple. You only need to provide your basic details to fill out the form, and then our claim specialist will analyse your request for a refund. If you purchased a car before 2021, you can be eligible for a PCP or HP claim. If you have overpaid your interest rate, you can be provided a refund. Our experts will identify your mis-selling issue and gather evidence to make a claim request. This process will take time. We will forward your request to the relevant department and do all the hard work for you. If you are willing to proceed, please check our website.