Black Horse is a subsidiary of Lloyds Banking Group. It is one of the leading car finance providers in the UK. Black Horse helps customers purchase new and used vehicles through various financing options, including Personal Contract Purchase (PCP), Hire Purchase (HP), and Lease Purchase agreements.
PCP is one of the most famous forms of car financing. It provides flexible payment options dispersed over a specific period. Most individuals in the UK prefer buying cars on finance. Black Horse Finance helps customers to make vehicle ownership accessible and straightforward. However, recently, the Financial Conduct Authority (FCA) has declared a series of mis-sold PCP deals, and thus, some Black Horse customers are looking for Black Horse PCP refunds. We will discover the reasons for mis-selling and how to claim for refunds.
Understanding PCP & HP Finance
PCP and HP contracts are widely used for car financing. A PCP contract requires a customer to make an initial payment, followed by lower monthly instalments and an optional payment at the end of the contract.
An HP contract requires the customer to make an initial deposit, which is then followed by fixed monthly instalments until the entire cost is covered by them. Later, the ownership is transferred to the respective buyer.
However, in the case of PCP deals, there is an optional final payment, and the ownership status is not confirmed until the customer has cleared all the pending dues. In other words, the customer has three options, which he may take advantage of at the end of the contract.
- Retain the car
- Renew the car
- Return the car
If you want to retain the car, you have to pay all amounts to get complete ownership of the car. This includes a final balloon payment as well. A final balloon payment or the Guaranteed Minimum Future Value (GMFV) is the lump sum amount that the customer pays at the end of the PCP contract. It is not present in an HP deal because all costs are covered by monthly instalments.
If you do not want to retain the car and want to exchange it for a new model, you can opt for this at the end of the PCP deal. Your financier will make adjustments for you, and you will sign a new PCP deal. Or else, you can just return the vehicle without paying the final lump sum.
These flexible options are available in a PCP deal only. That is why most customers prefer buying BMW, Audi, Mercedes, and Land Rover on PCP contracts. But now most of them are seeking BMW PCP finance claim as a result of Black Horse mis-sold car finance.
Claim for Mis-Sold Car Finance
Mis-selling happens when a seller misinforms the customer about an expensive product. In the case of car finance, mis-selling occurs when a car dealer or the lender misinforms the buyer about the car he is buying. This can happen in multiple ways. For instance, your seller or financier may have mis-sold you on car finance using the following tactics.
- He did not accurately provide you with the contract details.
- He did not update you on the car’s condition and mileage restrictions.
- He did not disclose the breakdown of total costs.
- He pressured you to sign the finance deal.
- He did not offer the best financial plan suitable for your needs.
- He charged you higher interest rates than the market rate.
While buying a car or any vehicle, it is essential to understand the terms and conditions of the contract. It is the responsibility of the lender and the dealer to educate you about the deal, restrictions, and limitations. PCP contracts are tricky to understand. Therefore, all customers must take the proper time to understand and evaluate the contract, ask questions and choose the best finance deal suitable for their needs. If they fail to do so, they can always seek a PCP refund. If you purchased a car with Black Horse Finance, you can apply for compensation for mis-sold car finance Black Horse.
How Auto Fund Can Help You with Black Horse PCP Refunds
As per the FCA, multiple finance providers, including Black Horse, might have charged discretionary fees on car deals before January 2021. This means that if you purchased a car on finance with Black Horse, there is a probability of your PCP deal being mis-sold. Discretionary Commission Arrangements (DCAs) were not banned before 2021, so many lenders charged higher interest rates or hidden fees to increase their profits. The recent investigation by the FCA has declared the names of some top financiers who might be involved in mis-selling. Thus, our PCP claim experts at Auto Fund will help you get a Black Horse PCP refund.
Our PCP claim process is fast, simple, and easy to use. You only need to gather some information and the required documentation. Then, our PCP claim experts will study your case and check your claim eligibility. This process involves no costs or fees. Once you become eligible for a PCP claim, we will submit your complaint to the court and help you win a refund. We will only charge you a service fee once you win your reclaim amount.
To facilitate our customers, we have an online PCP claim check tool available on our website. It is free and easy to use. Fill in the required, then our claim experts will contact you.
We help you win a refund and claim for your rights.