Personal Contract Purchase Claims (PCP)

A personal contract purchase is one of several options for financing a vehicle. It is similar to a hire purchase agreement wherein you must pay an initial deposit followed by regular monthly installments for a set period of time.



However, you do not actually pay for the car's value. Instead, you pay off the difference in the car's value between the date you bought it and the date the contract expires. As a result, although you won't own the car at the end of the term, monthly repayments on a personal contract purchase deal are typically lower than those on other types of car finance. You do, however, have the option to keep the car by making a lump sum payment at the end of the contract, known as a balloon payment.

Mis-selling of auto loans is a major issue. Mis-selling a car finance deal means that you either received poor advice, were not given all the information about a deal, or the risks were not explained to you. It usually results in you getting a deal and a car that does not meet your needs or financial means.

What exactly is financial mis-selling?

The lender has an obligation to inform you about the terms of their car finance deal, as well as what it can and cannot do, so that you are paying for a deal that is suitable for you and what you were looking for. If they haven't done so, you may be entitled to compensation.

Whether you have lost money or not, if the car isn't right for you as a result of mis-selling, you should file a complaint to prevent the lender from doing so in the future.

Maybe the financial company misled you about the extra costs in your contract or how risky the deal was - in these cases, you can file a complaint. You will not be compensated if you were aware of the disadvantages or risks of a deal because your lender informed you prior to the purchase.

Unfortunately, financial mis-selling is becoming more common, particularly with Personal Contract Purchase car finance deals.

Mis-selling was discovered on all types of motor vehicles, including new and used cars and vans, and under all vehicle financing options, including personal contract hire (PCH), hire purchase (HP), Contract hire, or a car loan.

We are your preferred legal partner in reclaiming compensation on your behalf as the UK's leading consumer law firm with a long track record of success.

Find out today if you've been the victim of hidden commission payments between brokers and lenders when using finance to buy a new or used car.

Click below to file a claim.