A recent investigation by the Financial Conduct Authority (FCA) found out that thousands of people who purchased cars on finance between 2007 and 2021 were mis-sold on their car deals. According to the authority, the customers shared complaints regarding overcharging of interest rates and Discretionary Commission Arrangements (DCAs). The investigation further revealed that some lenders categorically overcharged the customers who purchased cars on PCP and HP finance deals. Later, in 2021, the FCA banned DCAs, and financiers who charged high interest rates are under consideration.
According to finance experts, people who purchased cars on PCP and HP deals from MotoNovo and other big car finance providers should apply for a refund. So, if you bought an Audi or any other vehicle on PCP finance, you can start an Audi PCP claim.
MotoNovo Car Finance:
There are usually different types of car finance deals, such as personal contract purchases and hire purchases. Most people buy cars on PCP finance agreements due to their flexible payment options. On the other hand, people who want to own a vehicle can also apply for a hire-purchase agreement.
In an HP agreement, the customer pays an initial amount, and then he covers the total cost of the car in a monthly payment plan. At the end of the contract, the customer becomes the permanent owner of the vehicle.
However, in a PCP deal, the customer pays an initial amount, followed by lower monthly instalments and at the end he is left with an optional final payment. This is known as a balloon payment or a Guaranteed Minimum Future Value (GMFV). This is a huge amount and is only paid when the customer wants to keep the car and get the ownership title. In other cases, he may return the vehicle without paying this amount, or he may get a new car with a new PCP contract.
Thus, the end-of-term options in a PCP contract are more flexible than in an HP deal. That is why more people opt for PCP car finance, and in case of mis-selling, customers can apply for a MotoNovo PCP refund.
How to Detect Mis-selling?
Now, how to identify mis-sold car finance?
Both of the car finance deals can be mis-sold in various ways. A customer can identify mis-selling if he has been overcharged on his PCP or HP contract. Similarly, a customer can identify mis-selling if the lender or the broker does not inform him about the details of the finance agreement. It can also happen if they do not offer the best financial product to the customer based on his financial contrast.
Furthermore, if the customer was forced by the salesperson to sign the deal, then it is also considered as a mis-selling of a PCP or an HP contract. If the customer was not informed about the car’s condition, mileage restrictions and optional balloon payment, it is also a part of PCP mis-selling. In such cases, the customer can easily make a PCP car claim back. Hidden fees, DCAs and overcharging of interest rates also contribute to PCP mis-sold contracts. PCP contracts are tricky and intricate, not every person understands them properly, and they need professional help to make them understand and sign such deals.
If you think you have been mis-sold on your PCP deal, you can always make a claim back with Auto Fund’s PCP claim experts.
How to apply for a PCP Refund?
Auto Fund is well-recognized for PCP refunds. If you are looking for a MotoNovo PCP refund, you can seek help from our PCP and HP claim experts. Our team is well-versed in handling all claim processes professionally. Our process is simple and easy, unlike the PCP contract, which is complex and tricky, and not all customers fully understand it while signing the deal. This is why most people fall into the trap of mis-sold PCPs.
If you are interested in knowing whether you qualify for a mis-sold deal, you should test your claim eligibility with our free online claim checker available on our website. You just need to enter some details and then our free claim checker will help you make a claim.Once you qualify for the claim, our claim experts will contact you to get more information and then your application will be sent to the requested authorities. You should gather all paperwork, documents, and e-mails for further verification. It is important to note that the claim process is lengthy as it involves some legalities. So, be patient and let our experts handle and tackle everything for you. We have an experienced team who will do all the legwork for you. We do not charge any extra fees until you win your refund. So, Claim now if you want a PCP refund on your favourite car.