Why Is There a Spike in Complaints?

Personal Contract Purchase (PCP) agreements have become a popular way to finance vehicles, but the surge in complaints suggests potential issues in how these agreements are sold and managed. Key reasons for the spike include:

• Lack of Transparency: Many consumers claim they weren’t adequately informed about the total costs, including balloon payments, interest rates, or additional charges.
• Misrepresentation of Terms: Some PCP contracts failed to clearly outline mileage limits, excess mileage penalties, or end-of-term obligations.
• Failure to Assess Affordability: Consumers have reported that agreements were offered without proper checks on their financial situation, leading to unaffordable terms.
• Pressure to Upgrade: In some cases, consumers were pressured into signing new PCP agreements before completing their initial contracts, often without full disclosure of implications.
• Market Volatility: Falling used car values have left some customers with vehicles worth less than the final balloon payment, creating financial challenges.

Regulatory and Legal Developments

Regulators, including the FCA, have begun scrutinising PCP agreements for mis-selling practices. Recent legal rulings have also set precedents that could empower consumers to challenge unfair or non-transparent terms in their agreements. This growing focus has encouraged more people to come forward with complaints.

Why Could You Potentially Have a Claim?

You may have grounds for a claim if:

• You were not clearly informed about key terms, such as balloon payments, mileage restrictions, or additional fees.
• The agreement was sold to you without assessing your financial suitability or affordability.
• You were misled about the value of the vehicle at the end of the agreement.
• You experienced financial loss due to excessive penalties or charges.

What Compensation Could You Receive?

Compensation can vary but typically includes:

• A refund of overpaid amounts or unfair charges.
• Adjustments to the agreement terms to better reflect its original intent.
• Financial redress for distress or inconvenience caused by mis-selling practices.

Final Thoughts

As awareness of PCP mis-selling grows, more consumers are realising their rights to challenge unfair agreements. If you suspect your PCP agreement was mis-sold, it’s worth seeking expert advice to understand your options and potential compensation. Don’t hesitate to act—the sooner you address your concerns, the better your chances of a positive outcome.

Pacific Legal is a trading style of Levy & McRae, one of Scotland’s longest-established and leading solicitors. With a proud history of delivering expert legal services, Pacific Legal was created to support clients affected by financial mis-selling and/or wrongdoing.

Pacific Legal are currently working on claims related to St. James’s Place (SJP) and Quilter, helping individuals secure compensation for financial losses caused by mis-selling practices. If you believe you may be entitled to money back, don’t delay. contact us and start your claim today