Contacted regarding missold PCP

bazzyb

To add clarity to the above, it used to be the norm for years but has not been allowed since last year. 

Nearlyold

bazzyb said:

Deleted_User said:

WKZ12 said:

Interesting to see this and the replies, thanks OP for sharing.

It's good to see that it looks like the proper processes were followed. 

Sorry if I missed it, I've only skimmed this thread, but has anyone ever heard of a success story with these PCP Finance companies?

The basis of the "claim" (really a complaint) is that the salesperson inflated the finance rate in order to get more commission from the finance firm. It's utter hogwash - commission is perfectly legitimate, finance firms choose what rate you get, sales people can't affect that. 

Sorry but this is incorrect, DiC commission has been the norm for years, particularly in car finance. This allowed dealers to adjust the rate and commission. 

That’s not to say that these claims have any merit, as can be seen with the response above the customers were always aware of the existence of commission and the payments, APR etc. 

That's spot on it used to be commonplace.

Finance Companies and Dealer Groups would negotiate at Senior Level an agreed "Base Rate", the better "quality of credit business" the Dealer Group introduced to the lender the lower the base rate offered by fractions of a %. Various factors affected  the "quality of credit business"  such as competitively priced vehicles (which are a plus for the lender), business retention rates, default rates, complaint rates etc. Lower Base Rates might also be offered where Finance Companies were simply falling short of their own lending targets.

The Dealer was then free to add a margin to the base rate up to a certain maximum level and if the customer accepted it the dealer was quids in.

If the customer declined the rate offered and looked likely to walk, the dealer could reduce the margin over the base rate to the minimum and come back to the customer with what was known in the trade as a "Deal Saver" rate.

Sales Executives/Business Managers would be hauled over the coals if more than a certain percentage of their sales were completed at the Deal Saver Rate.

I can remember 20 plus years ago negotiating to buy a car on finance, the dealer came back with 15%, I said no way I'm not paying more than X% and 20 mins later the dealer came back with the X% rate I was happy with.
  

Daniel2curtis

Just as a small update. The company used to finance the legal work went into administration in 2021, only now been informed of this. Apparently this doesn't affect the claim but I smell a rat. 
A law firm make a potentially bogus lawsuit claim, get a huge amount of money from a secondary company that then goes into administration so probably gets the debt wiped? Hmm
They are called affinity finance. 

Ebe_Scrooge

That doesn't surprise me at all.  A firm of Ambulance Chasers set themselves up to file spurious claims on behalf of people who have nothing to complain about, then go bust.  If people weren't so quick to jump on the bandwagon and try to claim compensation for no reason at all, other than the promise of free money, these cowboy outfits wouldn't exist.

Daniel2curtis

They are also stressing the importance of three of the Ts&Cs. I think this is to make it clear that if you break any of these they will claim every penny of the legal aid loan back. I can see them trying this a lot because many people will simply get fed up of waiting and one of the terms is closing the case. 
Another is changijg legal firm. Not sure why anyone would do that. 
The third was not complying with the request for information from the legal firm. Another one they could use to their advantage for example if someone simply no longer has the information they ask for.