For more than a year now, there have been many stories commenting on the possibility, if not the likelihood, that the regulation and scrutiny of both the sale and use of Personal Contract Purchase (PCP) finance plans for cars will be increased in this country. And this is something that we would welcome here at PCP Mis-Sold, as we will now explain.
The Financial Conduct Authority (FCA) have been looking into this for a long time now, and they had published their initial findings last year, though they continue to investigate the issue. A key reason for this is based on just how many drivers are choosing to enter a PCP plan; it was estimated by the National Association Of Commercial Finance Brokers (NACFB) that one million cars were sold via a PCP agreement in 2017. Notice that this is just for vehicles sold that year, not the number of people actually in a PCP plan, and this figure has only increased since then. So, a lot of people are either entered into or are considering a PCP agreement.
Therefore, a lot more drivers are affected when there are instances of PCP being mis-sold by dealers, either due to errors that they have made by accident, or because they have deliberately misled motorists into signing up for an agreement that has terms unfair to them, or where the car itself does not stand up to scrutiny. Anything from interest to deposits to the regular payments themselves to other additional costs that are not necessarily explained prior to a purchase being made could have a seriously detrimental impact on the finances of a driver, which could lead to great stress and concern further down the line.
When such situations arise that are based primarily on negative business practices, those who are wrongly selling and using PCPs should be reprimanded by the justice system. That they are managing to avoid such a fate and are able to continue their questionable tactics to rip off other motorists is very concerning, as well as unnecessarily casting a dark cloud over the genuine dealers who do offer PCPs to the required standard. Only through increased legislation, regulation and scrutiny by the likes of the FCA can this change for the better, with both drivers and credible dealers being those who would and should be able to benefit most from this happening.
So, we hope that enhanced regulation and scrutiny, and the work to investigate malpractice pertaining to PCP agreements by the FCA, will continue to increase, and that we are able to see real action taken based on such findings in the very near future. Read more about this subject by taking a look at our new section here: www.pcpmissold.co.uk.