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PCP termination

Has anyone else experienced the termination of their PCP Contract with their car lender, after trying to claim a pcp payment.
This has recently happened to my partner, resulting in him having to pay the remaining amount for the car or having to give the car back to 
the company. 

Comments

  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Hi, I'm on a PCP at the moment. 

    Have they told your partner why they've terminated the agreement? 

    Can't your partner contact them and ask why?

    What you say at the end of your post makes me think that the contract has ended as that is what I'm expecting when my contract ends. I either give back the car or pay the 'balloon' payment. (Or I may be able to extend the agreement, they say.)

    Best thing your partner can do is contact the company and ask some questions.
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  • Grumpy_chap
    Grumpy_chap Posts: 18,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    polypo said:
    Has anyone else experienced the termination of their PCP Contract with their car lender, after trying to claim a pcp payment.
    This has recently happened to my partner, resulting in him having to pay the remaining amount for the car or having to give the car back to 
    the company. 

    There needs to be more information to allow anyone to provide good support to you on this question.

    Are you saying that there was one late / defaulted / missed / failed payment on the PCP and the lender has now asked for the entire balance to be cleared?

    Normally, an isolated failed payment in an otherwise good payment record would result in a reminder and possibly a default fee, not a calling in of the entire loan value.

    I also think this thread would be better in an alternative part of the forum, possibly LOANS board.
  • Sorry, No he hasn’t missed payments and is not at the end of the contract with lender. He applied for a pcp claim (miss sold pcp) with another company who approached his lender,  and the lender terminated his contract for the car ( which he currently has 11 months remaining of contract). I was just wondering if anyone else has experience this and if so has any advice. We have contacted all companies and appear to have no other solution other than handing car back. 

  • Grumpy_chap
    Grumpy_chap Posts: 18,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Was he mis-sold?
    If so, how and on what basis was he mis-sold?

    Is it possible that the lender is calling in the loan because they consider there was some fraud in the mis-selling claim?  I am not sure whether that is allowed and how the process would work, but is it a possibility?

    PCP comprises of two elements - the car and the finance - and they are not inextricably linked.  The car can be sold at any time to the highest bidder (which may be more than the outstanding balance in the current crazy used car market).  The debt can be cleared at any time.  Simply selling the car or clearing the debt does not directly have an impact on the other, though usually if the car is sold the (trade) buyer will clear the outstanding finance and then remit any residual balance to the individual.
  • The_Fat_Controller
    The_Fat_Controller Posts: 2,006 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 1 April 2022 at 8:09AM
    Has anyone actually won a case for mis-sold PCP ?

    Who are the "all companies" that have been contacted ?

    Surely there is only one company involved.

    All sounds a bit dodgy to me and there is not enough information being provided here.
  • touch1337
    touch1337 Posts: 22 Forumite
    Seventh Anniversary 10 Posts
    Surely that's what he wants?
    If he thinks he was mis-sold the PCP then the company terminating the agreement and him giving the car back is an ideal solution. 
  • You can't realistically expect a firm to continue providing you with a service while simultaneously claiming the service was miss-sold and wanting compensation. He was not miss-sold PCP, that is a new racket run by claims firms based on pie in the sky nonsense about somehow proving the sales person gave you a higher interest rate in return for commission while somehow also proving you would have got a better deal from that company
  • MrFrugalFever
    MrFrugalFever Posts: 1,301 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    The lender owns the car and may well have decided that due to your partners actions, it no longer wishes to conduct business with him.

    The ‘miss-selling of PCP’ is highly unlikely, even more so now since FCA regulations changed in January 2021. 

    Seems like you need to have a word with your partner and encourage him not to jump on a nonsense bandwagon.
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