PCP the new PPI Scandal?

AdrianC

Stacy_B wrote: »

I can't see how the parents of young adults 18+ can be to blame in any shape or form especially when they are considered to be legally responsible and an adult at that age... it's still your child regardless of age and you care and worry for them

Enough to fore-arm them with basic financial literacy and a sense of personal responsibility?

motorguy

onomatopoeia99 wrote: »

If the son has signed a PCP deal they must be an adult, so it's none of the parents' business.

I know government seems intent on extending childhood indefinitely, but once you're 18 you are legally an adult and your choices are your own, not your parents'.

I would be very surprised if any 18 year old who is in a position to finance their own car also is living under their own roof, therefore as the little fledgling still hasnt flown the nest, i would be ensuring they realised the full commitment they are entering in to.

And whilst there is no legal obligation, certainly a parent should still feel they can advise and guide their offspring.

I'd still bounce ideas off my dad and i value his opinions and i'm 47

motorguy

Stacy_B wrote: »

Thanks for the replies, those that were constructive - I can't see how the parents of young adults 18+ can be to blame in any shape or form especially when they are considered to be legally responsible and an adult at that age - I hope your child doesn't do the same ie walk into a garage as an young adult and walk out with a brand new car on PCP that is not suitable for their needs, I'm sure you wouldn't see that as your responsibility but it's still your child regardless of age and you care and worry for them - salesmen do not think the same as a parent they need the bonuses and sale!

I would like to think that any parent should be teaching their children the value of money and the consequences of contractual commitment.

I know i did with my son when he was that age.

Stacy_B wrote: »

PCP is always cheaper than finance which again makes it attractive and in easier reach - how many experience adults sign up to contracts and agreements without understanding small print etc... In all types of finance?

Exactly, hence why there is some parental responsibility to ensure children dont sign up to contracts with their eyes closed.

Stacy_B wrote: »

If the individual was correct regarding parents being responsibile then why did we have such the large scale PPI scandal before that affected all ages including the parents that you say should be teaching their children??

You do know what the PPI scandal actually was dont you? People were told they could only get / had a much better chance of getting a loan approved if they took out payment protection insurance. This was simply not the case.

It was blatant mis-selling and people were lied to.

PCP finance is not mis-selling.

Stacy_B wrote: »

Clever comments with no substance

Full of substance. Its the advice i gave my son.

My son is 22 and i strongly advised him before he was 17 to save for a car through birthday / christmas money, part time jobs etc and not to tie himself up with loans for cars, overdrafts and credit card bills.

He still has no credit cards and no debt even though hes now out in the world renting an apartment close to where he works, with his girlfriend. His car is worth maybe close to £7,000 and he doesnt owe anyone a penny for it, having bought it when he was still 19 for £9,000 cash.

He'd still discuss any major purchases with me and if i dont know the specifc answers i'll take the time to find out.

Parenting is about preparing your kids for life and that doesnt end when they turn 18.

bigjl

One small advantage with the all in deals such as Citreon or Peugeot Just Add Fuel.

After 3 years you will have 3yrs NCD if you keep your nose clean.

Stacy_B

It's a pity Some people on here werent about when PPI was as such an expert would have prevented it from happening to "millions" of people of all ages including parents that should know better! Even the financial "experts" couldn't see it, prevent or stop it, hindsight is great with these anonymous experts.

It would help if "some" people read the thread for what it's intended ie preventing others from suffering the same fate as those that have already fallen for the PCP payment plans which is what I assumed this forum was for as opposed to stupid comments trying to be clever and attack those who post on here - parenting has nothing to do with the post as I'm sure the same the childish comments would apply to those who took out PPI and no PPI was not only knowingly forced as part of a loan neither as the expert says it was as some didn't even know they had it but I suppose that was their parents fault even though I'm sure some of their parents weren't even alive at the time of application.

Please read the post carefully in the future and don't jump to conclusions - the PCP bubble has to burst in the future.

AdrianC

Stacy_B wrote: »

It's a pity Some people on here werent about when PPI was as such an expert would have prevented it from happening to "millions" of people of all ages including parents that should know better! Even the financial "experts" couldn't see it, prevent or stop it, hindsight is great with these anonymous experts.

It would help if "some" people read the thread for what it's intended ie preventing others from suffering the same fate as those that have already fallen for the PCP payment plans which is what I assumed this forum was for as opposed to stupid comments trying to be clever and attack those who post on here - parenting has nothing to do with the post as I'm sure the same the childish comments would apply to those who took out PPI and no PPI was not only knowingly forced as part of a loan neither as the expert says it was as some didn't even know they had it but I suppose that was their parents fault even though I'm sure some of their parents weren't even alive at the time of application.

Please read the post carefully in the future and don't jump to conclusions - the PCP bubble has to burst in the future.

<sigh> You still don't quite understand what people are saying to you, do you?

PPI had a place. For many people it was useful and valuable. The problem with it was not the existence of it, but the way it was mis-sold. As you say, many people didn't know they were paying for it, because of that mis-selling. Many people were sold it who could never have claimed against it. Premiums were sufficiently low that people didn't actually spot the outgoings or think too hard about them.

The only way in which PCP can be compared to that is if people are driving around in new cars that they don't know how they have, or if they don't even know they're paying for a new car.

You have a cob on against PCP. We get that. Well, fine. It's not rational, imho, but that's your prerogative. At a guess, your own kid has entered into a contract you don't think they should have done. Well, there y'go. Kids do things their parents don't always agree with. Could be worse. Have they actually defaulted on the payments? Are they likely to? They clearly have sufficient income for the lender to think they can afford it. Just because you don't think a younger adult has made a wise financial decision (without asking you) doesn't mean that an entire class of financing - which DOES work well for many people - should be shut down.

Should it just be younger adults who are barred from PCPs? What about other finance on new cars? Other financial products? Monthly payments for car insurance? Monthly contracts for mobile phones? Credit cards? Loans? Mortgages, even?

I repeat - if a kid has made such a bad decision, iyho, is that because - as you suggest - they were unable to understand the consequences of their decision? If not the parents - then whose responsibiity IS it to teach kids about the financial world? The education systems?

takman

Stacy_B wrote: »

It's a pity Some people on here werent about when PPI was as such an expert would have prevented it from happening to "millions" of people of all ages including parents that should know better! Even the financial "experts" couldn't see it, prevent or stop it, hindsight is great with these anonymous experts.

It would help if "some" people read the thread for what it's intended ie preventing others from suffering the same fate as those that have already fallen for the PCP payment plans which is what I assumed this forum was for as opposed to stupid comments trying to be clever and attack those who post on here - parenting has nothing to do with the post as I'm sure the same the childish comments would apply to those who took out PPI and no PPI was not only knowingly forced as part of a loan neither as the expert says it was as some didn't even know they had it but I suppose that was their parents fault even though I'm sure some of their parents weren't even alive at the time of application.

Please read the post carefully in the future and don't jump to conclusions - the PCP bubble has to burst in the future.

The main problem is that people take out financial products without doing any research. They happily keep paying for the financial product without fully understanding the paperwork or statements. Then when they hear they can get a refund on the PPI they paid they end up trying to make a claim without really understanding why they should get a refund. Or they jump into more contracts they don't understand with Claims Management Companies.

I always make it a point to read contracts before I sign them and to make sure I fully understand what I'm signing up for. There is plenty of information online which is easily accessible. Due to this I have never had PPI and have actively declined it because I did the research and knew it was not beneficial for my fiance all situation. I was also encouraged to sign up to a bank account with a monthly payment to get benficial rates. After two months I cancelled this and got the money I had paid refunded because I didn't feel it was worth the money.

So if I can do this why can't other people?. Being young can't be used as an excuse for lack of knowledge because I was 18 when I got the fee paying bank account and was 19 when I had the credit card and refused PPI!.

Instead of restricting financial products and dumbing them down why not advocate that people actually do some research before they sign up to these things?

neilmcl

Stacy_B wrote: »

It's a pity Some people on here werent about when PPI was as such an expert would have prevented it from happening to "millions" of people of all ages including parents that should know better! Even the financial "experts" couldn't see it, prevent or stop it, hindsight is great with these anonymous experts.

It would help if "some" people read the thread for what it's intended ie preventing others from suffering the same fate as those that have already fallen for the PCP payment plans which is what I assumed this forum was for as opposed to stupid comments trying to be clever and attack those who post on here - parenting has nothing to do with the post as I'm sure the same the childish comments would apply to those who took out PPI and no PPI was not only knowingly forced as part of a loan neither as the expert says it was as some didn't even know they had it but I suppose that was their parents fault even though I'm sure some of their parents weren't even alive at the time of application.

Please read the post carefully in the future and don't jump to conclusions - the PCP bubble has to burst in the future.

What "PCP bubble"? You clearly have no idea what you're posting about!

worried_jim

Buying something new and shiny that you can ill afford is a part of growing up- it teaches you (unless a complete knuckle dragger) the true value of saving and not to do it again.

If we are honest most of us have been there at some point in the past. - I still covet huge tv's, I don't even watch much anymore but always look through the adverts and and play fantasy purchase.

motorguy

worried_jim wrote: »

Buying something new and shiny that you can ill afford is a part of growing up- it teaches you (unless a complete knuckle dragger) the true value of saving and not to do it again.

If we are honest most of us have been there at some point in the past. - I still covet huge tv's, I don't even watch much anymore but always look through the adverts and and play fantasy purchase.

Absolutely. Both my younger brother and sister had themselves eye deep in debt at 19 for cars they didnt need but that were shiny and newer than most others their age were driving.

My sister particularly accompanied that with credit card debt and overdrafts.

My sister was 35 before she could afford to move out and my brother was 32.

But they always had nice cars on my mum and dads driveway.