An article was recently published online by Gladstone Brookes that focused on the latest findings of research conducted by the Financial Conduct Authority into the world of PCP car finance. The figures highlighted were very concerning, in particular the striking estimate of a massive £300 million being overcharged across the board, with a suggested average overcharge of more than £1,000 between the car dealer and the finance company.
Such results are very worrying, but they do nevertheless represent the thorough work that the FCA are carrying out to ensure that motorists will no longer be ripped off by dealerships and finance providers in the future, especially considering how widespread the problem seems to be in the UK right now. In addition, the publishing of numbers such as these, along with the realisation that their studies are only set to continue, will continue to capture people’s attention to the point that further action simply has to be taken.
Nevertheless, we are troubled to see just how many people are being mis-sold PCP car finance, and how much money they are forking out unnecessarily. At a time when the British economy faces great uncertainty due to the ongoing Brexit situation, residents are becoming more careful about what they spend their money on, in particular as it relates to major purchases which have a long-term impact. With this in mind, the fact that a high percentage of drivers are being ripped off is shameful to the industry and to those perpetrating negative business tactics.
The upside to these findings is the fact that severe and strict action will be taken against those who have been found to misrepresent their finance plans by overcharging for the purposes of greed and serving their own self-interests, and once the FCA has completed its lengthy research process, tough guidelines will be put in place to protect the needs of all involved. It may take time before we notice true change, and we may have to wake up to more hair-raising figures like those named in the article referenced here, but all of this is part of the FCA’s work in cleaning up the industry, reducing and removing instances of malpractice, and ultimately creating a culture where motorists will no longer be ripped off when signing up to PCP car finance plans.
You can learn more about this topic on our news page here www.pcpmissold.co.uk.