Personal Contract Purchase (PCP) finance is one of the most popular ways to buy a car in the UK. Many people were mis-sold PCP agreements without full disclosure of commission structures or unfair terms. If a lender failed to explain how commission affected your deal, you could claim a refund. This process involves proving financial harm and challenging the lender’s practices.
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Are You Eligible for a PCP Refund?
Thousands of UK drivers may be entitled to a refund due to unfair PCP agreements. If your lender didn’t clearly explain commission fees, you might have a case. Misleading terms, high-interest rates, or hidden costs can also qualify for a refund.
How to Check If You Were Mis-Sold a PCP Deal
Check your finance agreement for unclear charges or excessive interest rates. Request a Subject Access Request (SAR) from your lender to see all associated documents. If you spot unfair charges, start the claims process.
The Step-by-Step PCP Refund Process
1. Gather Your PCP Agreement Details
You’ll need a copy of your original finance agreement. This includes the total cost, interest rates, and any commissions paid to a broker. If you don’t have it, ask your lender for a copy.
2. Submit a Formal Complaint to the Lender
Write to your lender explaining why you believe the PCP agreement was mis-sold. Clearly state the lack of transparency regarding commission or unfair charges. Include any evidence that supports your claim.
3. Wait for the Lender’s Response
Lenders must respond within eight weeks. Some may offer a settlement, but others may reject the claim. If rejected, escalate the complaint to the Financial Ombudsman Service (FOS).
4. Escalate to the Financial Ombudsman Service (FOS)
The FOS investigates cases where lenders refuse to issue refunds. They review agreements, determine if mis-selling occurred, and issue a ruling. If successful, you could receive compensation for unfair costs.
How Much Could You Receive from a PCP Refund?
Refund amounts vary based on interest rates and commission levels. Some drivers have reclaimed thousands of pounds due to excessive charges. If your case is successful, the lender must return any overpaid interest plus potential compensation.
What If You Have a PCP Black Horse Claim?
Black Horse is a major UK car finance lender linked to mis-sold PCP agreements. Many customers have filed PCP Black Horse claims due to hidden commission fees. If you had a PCP deal with Black Horse and weren’t told about commissions, you might be eligible for a refund. Follow the same claims process outlined above.
Final Thoughts
If you suspect mis-selling, don’t ignore it. Many UK drivers are owed refunds due to unfair PCP agreements. Gather evidence, submit a complaint, and escalate if needed. The sooner you act, the better your chances of recovering lost money.
