Personal Contract Purchase (PCP) is a popular option for financing a Citroën. Citroën cars are available at different car financing deals. The company also offers flexible and affordable payment plans for its customers. A PCP contract is a useful car financing resource similar to a Hire Purchase (HP) contract. However, navigating the financial process can be tough for many individuals, especially when issues arise. Therefore, if you are nearing the end of your contract or have identified problems with your PCP deal, it is time to make a Citroën PCP claim.
The Financial Conduct Authority (FCA) has also identified thousands of mis-sold PCP car deals over the time period starting from 2007. If you have bought any car on finance between 2007 and 2021, there are some chances that you might be mis-sold on your PCP contract. Likewise, if you have purchased an Audi from Audi Financial Services, you can file a mis-sold PCP claim. FCA PCP mis-selling claims have become widespread across the UK, and millions of people are applying for refunds on their mis-sold PCP contracts. We will help you understand the common issues and how to solve them efficiently.
What is a PCP Contract?
A PCP contract is a financial agreement between the customer and the dealer to give the car on set terms and conditions following a specific payment plan. The PCP contract involves an initial payment, followed by monthly payments for a fixed period, which is usually two to four years, and then the customer has three options to choose from.
- Retain
- Return
- Exchange
The customer can opt to retain the car if he pays the final lump sum. This final lump sum is known as the optional balloon payment. It is also referred to as a Guaranteed Minimum Future Value (GMFV). When the customer pays this amount, he can become the owner of the vehicle. Likewise, if he wishes to return the car, he can return it without making any additional payments. Furthermore, if the customer wants to exchange it for a new car, he has to sign a new PCP deal. These three options are only available at the end of the PCP contract. It gives the customer the freedom of options to choose from.
Whereas, in an HP agreement, the customer pays an initial amount, which is followed by a fixed monthly payment plan until the customer becomes the owner of the vehicle.
How to Identify Mis-Sold PCP Deals?
As per the examinations of the FCA team, many people who purchased cars on PCP finance before the year 2021 were overly charged on their Discretionary Commission Arrangements (DCAs). This practice was banned by the authority in 2021, but PCP contracts signed before that can be subjected to PCP claims.
Thousands of individuals have already filed for Citroën PCP claim. They think that they were unfairly charged excessively high interest rates and hidden fees on their PCP contracts. Their dealer or the broker did not inform them about these charges, and as a result, it caused extreme financial distress. They also claim that they were not presented with a complete breakdown of the total costs of the PCP contract. Such improper actions are all counted as mis-selling.
Furthermore, some other PCP issues can be highlighted. Some customers lack understanding of the PCP contract. They are not aware of the mileage restrictions of their car. If they exceed the limit, they can be charged an additional fee per mile. Similarly, all PCP contract holders should be familiar with the contract’s wear and tear costs. If they return the car with some scratch or torn interior, they will be charged a fee for such damages. Sometimes, people are not aware of these limitations and find it difficult to pay upfront charges at the end of the contract. Therefore, it is recommended that you educate yourself on all the details or hire a professional to manage your process efficiently.
Seek Help from PCP Claims Solicitors
PCP contracts are tricky, but the PCP claim process is simple and easy. With the help of the right PCP and HP claim experts at the Auto Fund, you can make a PCP claim easily and effortlessly. We have the best PCP claims solicitors in the UK. Our expertise lies in handling all sorts of claim cases for all car brands across the UK market.
It is very easy to make a PCP claim with our online claim-checking tool. We have developed an online form for all our customers to make their claims in the comfort of their homes. If anyone has purchased any car on finance from any lender, they can make a claim request for free from our website. We do not charge any hidden fees.
Firstly, we will gather some important details about your contract. Then, we will check your eligibility to file the claim request. If your details meet the requirements, we will forward your complaint to your dealer or the lender for a quick resolution. We will update you on the process and guide you through the claim process.
So, take a quick visit to our website.