In the world of vehicle financing, Personal Contract Purchase (PCP) has become a heated option in the United Kingdom—thousands of Britishers buy cars on PCP finance throughout the year. Despite other financing options, people prefer buying cars on PCP deals with lower interest rates and flexible payment plans. That is why car financing companies like Black Horse, MotoNovo, and Close Brothers offer variable payment plans.
However, the recent discovery by the Financial Conduct Authority (FCA) discovered some old cases of mis-sold car finance deals. According to their analysis, vehicle financing firms such as MotoNovo, Close Brothers, and Black Horse might have mis-sold their customers on PCP contracts due to discretionary commission arrangements. The Discretionary Commission Arrangements (DCAs) were not banned before 2021, and many car financing companies practised them to sell PCP deals. However, some might have charged higher interest rates to gain more profits. Thus, an investigation is going on by the government where people can claim a MotoNovo PCP refund if they have been mis-sold on a PCP deal before 2021.
Fundamental Problems of PCP Agreements:
Before we discuss the MotoNovo mis-sold car finance claim, let’s first understand what a PCP agreement entails. A PCP agreement is similar to a Hire Purchase (HP) agreement as it involves an initial deposit and then monthly instalments for a set period, usually 2 to 4 years. However, at the end of this contracted term, a PCP buyer is bestowed with three great options.
- Retain
- Return
- Renew
If you purchased your favourite dream car, particularly an Audi, on PCP finance, you have three different routes to end your PCP deal. You can keep the vehicle by making a final payment. You may return the car without paying any amount. Not only that, but you may exchange it for a new car by setting up a new PCP deal. Your dealer will help you choose the best option for your needs.
In case, you want to keep the car, you have to pay the final payment which is a balloon payment. This is an optional lump sum amount that a PCP holder may make if he wishes to keep the car. This is commonly known as a Guaranteed Minimum Future Value (GMFV).
However, if you do not want to keep the car, you can return it without making any further payments. Thirdly, you may sign a new PCP deal for a new car. All of these options are presented to you by the lender so that you may select the best.
A lender plays an important role in a car financing deal. If your lender fails to inform you about the contract, it can be considered a mis-sold deal. Most buyers are not familiar with the complex terms and conditions of a PCP contract and hence fall under the trap of a mis-sold car deal. So, if you think you were mis-sold on the Audi PCP deal, you can make an Audi PCP claim for it.
How to Identify MotoNovo Mis-Sold Car Finance?
As we discussed earlier, the lender should educate and inform the customer about his PCP rights. Sometimes, they fail to do so, and occasionally, they charge hidden fees or commissions without informing the customers. This act is counted as a mis-selling of the PCP deal. The FCA has included MotoNovo Finance’s name under the list of finance companies that owe money to its PCP customers. So, that its customers can easily make a MotoNovo PCP claim for their mis-sold car deals.
Mis-selling can happen in different ways. Here is a list:
- Your lender or the car dealer failed to inform you about the car’s condition and other mileage restrictions.
- Your lender did not provide a complete breakdown of the total costs, commissions and hidden fees.
- The lender charged a higher interest rate than the recommended rate.
- The lender did not provide the best financing option for his customer.
- The dealer did not run an affordability check on the customer.
- The customer was, somehow, not informed of the final balloon payment.
Individuals who purchased vehicles on PCP finance from MotoNovo Finance between 2007 and 2021 can claim a MotoNovo PCP refund. MotoNovo Finance also addresses the complaints and concerns of all their customers. Thus, claiming for a mis-sold deal is not a big issue if done properly.
How to Make a MotoNovo PCP Claim?
Anyone can make a PCP claim for their mis-sold vehicles. Our PCP claim experts at Kingsley Marketing are always here to help you make a successful claim. We understand the market dynamics, the refund laws and the customer’s financial situation. For that reason, we are ready to facilitate all PCP and HP customers who purchased any vehicle on finance from 2007 to 2021.
Our PCP claim process is simple, easy, and transparent. We have a free online claim-checking tool available on our website that will help you validate your eligibility for the claim process. You only need to provide some basic information. Then, our experts will handle your claim process free of cost.
We provide free consultation to all and have no hidden charges. We do not charge a penny until you get a refund. It is important to remember that a PCP claim process is simple yet time-consuming. It is a legal process, and it should be handled by professionals. Therefore, hiring solicitors from our company will speed up your refund process.
Our professionals will gather all the relevant information needed to make a claim, including the contract, marketing documents, e-mails, and receipts. Once we establish your eligibility to make a claim, we will forward your case to your lender and help you win your money back.