Car industry to face massive PCP deals reclaims - akin to the PPI debacle

[Michael Browne]

The latest thing is the mis-selling of PCP car finance deals, according to the National Association of Commercial Finance Brokers (NACFB).

 

They have said that lawyers have started to look at dealers and finance firms, to see if customers have been sufficiently informed about the higher interest rates for PCPs, and the like.

 

With around a million cars being sold on PCP deals last year alone, if there's any deception found, this could be huge for the car industry, and indeed, very profitable for claims companies.

 

If it is found that drivers have been poorly informed, or even deliberately mislead about PCP deals, there could be a lot of compensation flying around in the coming months.

 

The NACFB said that two main things are being looked at.

 

The first is that it is thought people taking out a PCP weren't warned that they'd be paying considerably more interest over the term of the loan, than the amount they'd be paying if they bought their vehicle under a hire purchase (HP) agreement.

 

They're also looking at car salesmen, who may have told prospective buyers that, by considering PCP, they'll actually make a profit at the end of the contract, as the car they've bought is likely to be worth more than the final optional 'balloon payment' figure.

 

http://www.bitterwallet.com/motoring/car-industry-faces-ppi-like-claims-92400

[Andyorch]

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