Personal Contract Purchase (PCP) is a popular car finance option in the UK that allows you to pay a deposit followed by lower monthly payments. At the end of the agreement, you can either make a final balloon payment to own the car, return it, or trade it in.

While it offers flexibility, many people find themselves misled about key terms like mileage limits, balloon payments, or hidden fees. Mis-selling occurs when these details aren’t properly explained, leading to unfair financial consequences. In some cases, lenders like Close Brothers have been involved in mis-sold finance agreements.

If you suspect you were mis-sold a PCP deal, it’s important to know that you have the right to reclaim what’s owed to you.

Here’s your guide on PCP claims by Reclaim247 to help you understand your rights and take the right steps in recovering from the financial impact of a mis-sold agreement.

What is PCP and How Does It Work?

Personal Contract Purchase (PCP) is a type of car finance that allows you to spread the cost of a vehicle over a set period, often with lower monthly payments compared to other finance options. You’ll usually pay a deposit upfront, followed by regular monthly payments. At the end of the agreement, you’ll have a choice: pay a balloon payment to own the car, return the vehicle, or trade it in for a new deal.

What sets PCP apart from traditional hire purchase or loans is the flexibility at the end of the term. However, with this flexibility comes the potential for misunderstandings, particularly around mileage limits, balloon payments, and the condition of the vehicle. If any of these aspects weren’t clearly explained or were misrepresented, it could indicate a mis-sold PCP deal. Understanding these basics will help you assess if you might have been misled in your agreement.

Signs You May Have Been Mis-Sold a PCP Deal

Not all car finance deals are fair or explained clearly, so it’s easy to end up with a PCP deal that doesn’t work for you. Here are some red flags that you might have been mis-sold:

• The salesperson didn’t explain how much you’d have to pay at the end (the balloon payment)
• You weren’t told about mileage limits, which led to extra charges
• You were hit with surprise costs at the end of your contract
• The deal didn’t fit your financial situation, but you were pushed into it
• There were unclear or hidden fees in your contract
• You weren’t offered other finance options to choose from
• Changes were made to the agreement without clearly telling you

If any of these points sound familiar, it’s possible you were mis-sold, and you may want to consider making a claim.

Can You Make a PCP Claim? Here’s How to Find Out

If you’re wondering whether you’re eligible to make a PCP claim, the first thing to do is to look at the details of your finance agreement. Make sure you have the paperwork and carefully review it for any inconsistencies or unclear terms. Were all the key points, like interest rates and final payments, clearly laid out when you signed? If not, this might be grounds for a claim.

Start by identifying whether you were misled on crucial points, such as the condition of the car at the end of the agreement or the overall cost of the deal. Checking these documents will help you decide if you’ve been unfairly treated.

If you’re still unsure, seeking advice from professionals who specialise in PCP claims could be a good next step. Often, claims management company such as Reclaim247 have a convenient online portal where you can fill out your details. They can then review your case and let you know if you’re entitled to compensation.

How to Start Your PCP Claim Process

Reclaim247 is a claims management company that specialises in helping people reclaim compensation for mis-sold car finance agreements, including PCP deals. They’ve got plenty of experience in this area and can guide you through the process, making sure everything is straightforward and transparent.

Here’s a simple breakdown of how to start your PCP claim:

Step 1: Gather Your Personal Details

Make sure you have your basic information ready, such as your name, date of birth, and address. These are needed to identify your finance agreements.

Step 2: Find Your Finance Agreement

If you don’t have your finance paperwork on hand, don’t worry. Reclaim247 can assist you in tracking down the relevant documents from your lender.

Step 3: Submit Your Claim

Once you have everything together, submit your claim. Reclaim247 will review your agreement and check for any signs of mis-selling.

Step 4: Get a Clear Answer

After reviewing your documents, Reclaim247 will let you know if you’re eligible for a claim and estimate how much you could be owed. 

By following these steps, Reclaim247 ensures you’re fully supported throughout the claims process.

What Happens After You Start Your Claim?

Once your claim is submitted, the process kicks into gear. You’ll likely hear from a legal representative who will handle the details of your case. They’ll contact your lender directly, usually by letter, to begin the formal claim process. This step is crucial in officially starting negotiations for your compensation. You’ll be kept in the loop on the progress, with updates from your solicitor about the response from your lender.

During this time, your lender may request further information or challenge the claim, which your solicitor will handle on your behalf. It’s worth noting that claims can take time, and each case is unique, but having professional representation ensures everything is dealt with properly and in a timely manner.

Legal Representation and What to Expect from Bott & Co

If you choose legal representation through a service like Bott & Co, you’re in safe hands. They specialise in mis-sold PCP claims and will take care of all the legalities for you. Once you’ve agreed to their terms and signed the necessary documents, they will contact your lender to make the claim on your behalf. This means you don’t have to worry about dealing with the lender directly, as it’s all handled for you.

What’s great about having legal support is that they will fight for your best interests, ensuring you get the compensation you’re entitled to. They’ll keep you informed every step of the way, so you always know what’s happening with your case. If your claim is successful, they’ll also help you navigate any paperwork needed to finalise things.

Bottom Line

If anything in your car finance agreement feels off, don’t hesitate to take action. Reclaiming what’s rightfully yours doesn’t have to be difficult, and there are services available to guide you through the process. Now’s the time to review your options and make sure you’re treated fairly.