Volkswagen is a leading automotive brand known for its reliability, design, and commitment. With a strong focus on safety, advanced technology, and a range of models to suit every lifestyle, Volkswagen continues to be a leader in the automotive industry, delivering vehicles that offer both driving pleasure and peace of mind. Most people buy it as a status symbol. Therefore, the company offers different car financing options to facilitate their customers. The UK’s most prevalent car financing options are Personal Contract Purchase (PCP) and Hire Purchase (HP) finance.
Recently, the Financial Conduct Authority (FCA) found a series of mis-sold car finance deals before 2021. According to the latest reports, people who purchased cars on PCP and HP finance between 2007 and 2021 were charged excessively high interest rates, which increased the costs of the PCP contract. This practice of Discretionary Commission Arrangements (DCAs) was banned in 2021. People who purchased a Volkswagen on a PCP deal may make a Volkswagen PCP claim.
Understanding PCP & HP Agreements
Car financial agreements are a top-rated source of purchasing cars in the UK. Most people opt for PCP contracts rather than HP contracts. An HP contract allows the buyer to make an initial deposit and then monthly payments to become the permanent owner of the car.
In contrast, in a PCP contract, the buyer pays an initial amount, followed by monthly payments, and then has the option to make a final balloon payment. This final balloon payment is a Guaranteed Minimum Future Value (GMFV). The PCP contract holder pays this amount to become the vehicle owner. If the buyer is not interested in retaining the car, he can return the vehicle without paying extra. Similarly, if he wants a new car, he may apply for a new PCP contract. Thus, a PCP contract offers three end-of-term options, and if the customer is mis-sold on any PCP deal, he may apply for a mis-sold car finance refund.
How is a PCP Contract Mis-Sold?
Mis-selling can happen in many ways. The most prevalent cause of car finance deal mis-selling is DCAs. Millions of cars were mis-sold during 2007 and 2021. Lenders charged hidden fees and commissions on each PCP contract without informing the buyers. Black Horse might have mis-sold PCP contracts before 2021; therefore, the customers are claiming a Black Horse PCP refund.
There are some other ways of mis-selling as well. PCP contracts are complicated, and not all buyers properly understand them before signing the deal. The lenders, brokers, and car dealers must educate the customers on all terms and conditions of a PCP contract. If they fail to do so, the customer may claim a mis-sold deal.
Likewise, if the dealer or the broker did not run a complete financial check on the customer and did not sell the best financial product suitable for their needs, the customer has a right to reclaim the mis-sold car deal. If the seller pressured the customer to buy the car, the customer may make a mis-selling claim.
Furthermore, if the lender or the dealer failed to explain the end-of-term options, mileage restrictions, and balloon payments, this may result in a mis-sold PCP deal. Mis-selling a PCP contract may cause financial stress to the customer. Customers require professional advice on signing a car finance deal; otherwise, they have a right to claim compensation for the mis-sold contract.
How to Make a Volkswagen PCP Claim?
If you purchased a Volkswagen before 2021 on PCP finance, you can get a Volkswagen PCP claim. PCP claims are the most trending topic in the UK’s financial market. The claim process is not as complex as the PCP contract but involves some legalities. Therefore, it is always better to consult professionals.
We have a dedicated team of PCP claim experts at Drive Back Financial. Our PCP experts are trained to swiftly tackle every aspect of the claim process. The lengthy process involves many formalities; therefore, hiring our expertise will help you streamline it.
To file a PCP claim, you may visit our website and start a free claim process. We have an in-built claim-checking tool on our website. It is free and will help you identify your eligibility for filing a mis-selling claim. All you need to do is provide some basic details, and then the free claim checker will verify and update your status. If you qualify for a refund, our PCP experts will proceed with your case.
You should have your official documentation with you. It may include a copy of the contract, receipts, e-mails, brochures, marketing materials, and any other written document. We will cross-check your details and then forward your request to your lender. This might take some time, but it is worth it. Once we get a response, we will handle your case until you get your money back. So, check your claim eligibility now via our website and get your money back.