Today’s article is a two-parter, with both areas interlinked. We will firstly look at the car finance products that have been mis-sold, and then the concerns of the automotive industry as a whole on the subject of mis-sold car finance.
Starting with the former, the obvious first product is the car finance itself. A Personal Contract Purchase (PCP) is the most popular plan amongst drivers, but Hire Purchase (HP), Personal Loan (PL) and Personal Contract Hire (PCH) are also subject to instances where customers are being sold a deal that really is too good to be true. Whether it’s the costs involved, the terms and conditions favouring the seller much more than the buyer, or the pressure being placed on a motorist to enter into an agreement (e.g. “our offer runs out today and the price will increase significantly from tomorrow”), there are so many ways that a dealer can mis-sell car finance to a driver; it is worrying when they manage to do so without the buyer even suspecting a thing.
Other products relating to car finance include, of course, the actual vehicle. Whether the car has a very limited lifespan remaining, a whole bunch of non-functioning parts, a massive amount of miles that have exhausted its capabilities, or just the general wear and tear that makes a car look something less than fresh, the vehicle that a driver ends up with could be very different to the one they are sold. Additional related products include insurance, spare parts (such as a tyre), and bonus payments that are dressed up as being vitally important, but actually make no difference whatsoever except to the seller’s bank balance.
As for concerns within the industry: the first is how regularly this is happening, and how high the percentage of mis-sold car finance plans really is in the UK in 2019. The lack of legal action to handle this rising problem is also worrying, although the Financial Conduct Authority (FCA) are in the midst of an in-depth investigation that should hopefully put greater regulations in place. Then there is the fact that truly credible dealers may be tarred with the same brush as the misbehaving sellers, simply because both are offering car finance to motorists. And at a time when the UK’s financial forecast already seems bleak due to the question marks surrounding Brexit, issues like mis-sold car finance could potentially lead to such sales dropping, which of course could seriously impact the futures of market leaders who sell PCP, PCH and so on.
But while there is a lot to be concerned about, here at PCP Mis-Sold, we work closely with those affected by the problems raised in this article, as well as having the belief that the work currently being carried out by the FCA will lead to a more scrutinised system being created to limit the mis-selling of car finance going forward, thus reducing any possibility that sales will drop and keeping this area of the motoring industry in a positive place.
Share with us your Car Finance PCP Mis-selling scenarios.