PCP Loan Amount on Credit File

VikJ

Hi all,

I am currently in the process of moving house and therefore talking about mortgages to lenders with a view to getting an offer in principle and one of the things that has come up is my amount of unsecured debt.

Having done some digging, I have a car on PCP and the balance showing in my Experian report is way above what my commitment is for the PCP period.

For example, the car was purchased in Nov 2014 at £300 a month, therefore total commitment is £14400 of which I've paid £3600 so outstanding balance is £10800 but the balance in Experian is showing as £21000 which is roughly the full value of the car.

So my questions are:

• Why would my credit report show the full value of the car when I have the option to hand it back at the end of the 4 years?
• Does anyone else have something similar showing on their credit report please?

Thanks in advance.

TadleyBaggie

On PCP you finance (i.e. pay interest on) the whole amount of the loan. So showing the full amount is correct.

marty2be2000

it will always show the full amount because until the car is handed back you remain liable for the full value of the car.

VikJ

ok, thanks all

Barclayloan_query

I had a similar issue with a contract hire vehicle...

Barclayloan_query wrote: »

Just an update to this in case anybody else is in a similar situation...

I queried the amount owing on my credit report which was showing as the total value of the car, rather than my actual contracted payments (car = £8500, amount owed by me = £2400) with the credit reference agency. After a few weeks the finance company replied to say they were amending the data supplied to reflect the balance owing to £2400 :T

I'm happy with this as otherwise it looked like my outstanding debt was much higher than it should have been.