In today’s blog, we will examine how dealers are mis-selling finance to customers. For the most part, the assumption is that it happens intentionally, but while this can certainly be the case, it doesn’t always apply to the situation.
Indeed, sometimes genuine mistakes are made, and the terms and conditions of a PCP agreement are misconstrued. The upshot is that errors are made within the contract that is signed, and unfortunately for the client, that can often impact them the most should it result in them having to pay out more money than they should be. However, if this is identified and explained to the dealer as soon as possible, there is a real chance that they will admit their mistake and update the agreement accordingly, while you receive a refund on the unnecessary extra cash that you have splashed out. Regrettably, it isn’t always as simple as that, and it can sometimes take weeks or even months to get your money bac, but this is just to highlight that, occasionally, the mis-selling of finance is totally accidental, perhaps coming down to a typo or a wrong figure that ends up having a big impact.
Of course, though, there are those dealers who deliberately mis-sell finance to seemingly-unaware customers. They identify that a customer is either new and thus unaware of what they are signing up for, or that they are so busy or stressed that they’re happy to sign up for anything to get the agreement over and done with. They are also aware that a small percentage of clients actually read the entirety of the agreement; many customers just look at the main points and sign on the dotted line. This is where the more shady dealers take advantage, as they throw in terms and conditions somewhere within the paperwork that they know won’t be seen, so they can get away with including them and arguing at a later date that their business practices are just and legal.
Then there are those who simply want to take a chance and try to get the best deal. Sure, they may lose their customer should the client recognise that they’re being ripped off, but the potential gain if the client does agree to it is that they will ultimately make more money, possibly double or even triple of what they should make for that particular agreement. It’s no different from having a car that is worth £10,000, and trying your hand at selling it for £15,000, knowing full well the market value of the vehicle. If no sale happens, you lower your price to the actual amount, but if you do engineer a sale, you’ve made a lot more money. The same theory applies to PCP finance, but because of the legal ramifications and the potential long-term impact upon the customer and their finances, their actions take on a much greater negative vibe.
Fortunately, though, that is where PCP Mis-sold can help, regardless of the reasons why PCP has been mis-sold (whether as a complete accident or as a deliberate ploy to con). Find out more by visiting our news page.