Black Horse is a leading finance provider in the UK. It offers vehicle financing options, including Personal Contract Purchase (PCP). PCP finance is a popular way for car financing as it allows customers to make a purchase at lower monthly instalments and allows customers to decide about the car at the end of the contractual term. It is a good car financing option for people who want to change cars every few years.
If you bought your favourite Mercedes on PCP finance before 2021, you might be eligible for a PCP refund. People who purchased Mercedes on PCP finance from Black Horse Finance are making Mercedes-Benz PCP claim. The Financial Conduct Authority (FCA) has initiated an investigation into the car finance deals that were signed between 2007 and 2021. The authority has received thousands of complaints regarding high interest rates and hidden commissions. The authority banned the practice of Discretionary Commission Arrangements (DCAs) in January 2021. Now, it is investigating the complaints filed against the lenders and reviewing cases for refunds. Therefore, if you have signed mis-sold PCP deals, you can also check and file a PCP claim against your lender.
Why Choose PCP Finance Over HP Finance?
PCP finance is more user-friendly as compared to HP finance. Basically, these two are the top car financing options, known as Hire Purchase (HP) and PCP finance. A Hire Purchase (HP) agreement involves an initial payment, followed by fixed monthly payments, and then the contract holder becomes the owner of the vehicle.
Whereas in PCP finance, there are lower monthly payments and three end of term options.
- Retain
- Return
- Exchange the car
If you purchased a car on PCP finance, you will have an option to retain the car after paying the full balloon payment. Otherwise, you can return it without paying this lump sum amount. Lastly, you can always sign a new PCP contract to exchange your car or vehicle.
This optional final balloon payment is a huge lump sum amount which is also known as Guaranteed Minimum Future Value (GMFV). Customers should be aware of this final payment if they want to retain the vehicle.
Furthermore, a PCP contract offers lower monthly payments, greater flexibility at the end of the contract, and claims service if mis-sold.
How to Identify PCP Mis-selling?
A mis-sold PCP contract can be reclaimed for compensation by filing a complaint. There are different reasons for a mis-sold deal. One of the main reasons is the high interest rates that were charged as part of hidden fees or commissions to increase profit gains. Before 2021, many lenders charged excessively high interest rates on the PCP contracts as part of DCAs. This has caused immense financial and psychological burdens for customers. Now, customers are claiming refunds on their mis-sold PCP contracts.
Other reasons for mis-selling include,
- Non-disclosure of third-party fees or commissions.
- Pressure to sign deal immediately.
- Not informing the customers about the car’s condition, mileage restrictions, and final payment.
- Not explaining the terms and conditions of the PCP contract to the customers.
- Using sales tactics to sell any car finance deal as quickly as possible.
If any of you faced such situations while signing a Mercedes PCP deal, then you should review your agreement. You can make a PCP claim Mercedes if you think you have been mis-sold on the car’s deal. If you are not sure about it, you can consult PCP experts to review your agreement.
Make a Mis-sold PCP Claim
PCP claims are a hot topic in the UK automotive industry. Many lenders and car dealers are worried about refunds. Many of the top car financing firms including Black Horse Finance, are facing thousands of customer complaints against the mis-sold PCP deals. Therefore, you should also check and file a PCP claim for your vehicle.
The PCP claim process is simple and similar for every car type. No matter what car or vehicle you own on a PCP deal. You can check your claim’s eligibility with an online PCP claim checker. This tool is freely available on most PCP claims websites. It will ask you for some of your basic details and car information. After filling in the requirements, you will get an overview of your claim status. If you qualify for a PCP claim, a PCP claim expert will contact you.
Your claims expert will further guide you on the claims process. This process might take some time as the request will be forwarded to the lender, dealer, or broker, and then your financier will accept your valid request. Otherwise, you might have to wait even more. Nevertheless, you will get your compensation if your request is genuine and you purchased a mis-sold car deal before 2021. Therefore, do not miss this opportunity. Contact your nearest claim expert to help you guide the PCP claim process.
