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Mis-selling of PCP (Mis-sold PCP)

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Hi All

I wonder if you can help me here. I see a few feeds re: Mis-sold PCPs etc (Car Finance Agreements) 

I have a few questions. 

The first is that I used the template letter on MSE and sent it in good time before my contract finished however just last week the lender (in this case SEAT/VW Financial Services) point blankly refused any of my issues regarding the possible mis-selling of car finance and offered no compromise. They even said that my letter didn’t specify mis-selling. However I used a number of points on the templated letter, including extra interest added by the dealership through, the affordability checks done at the time, and more. 

USING THE MSE MIS-SELLING TEMPLATE
So first question is. Is this what all the finance companies do - Do they just ignore your complaints as you are the “small man” or “small woman“ with no powerful organisation behind you?
AND Has anyone had any joy with this issue using the MSE claim template?

PCP MIS-SOLD PCP CLAIM COMPANIES
Can anyone recommend a decent one that charges less than 40% plus VAT and additional fees? As around 40% is an exploitative fee.
I really would love an organisation who are reliable but not too expensive. RECOMMENDATIONS PLEASE

Many thanks

Jason

«13

Comments

  • MrFrugalFever
    MrFrugalFever Posts: 1,237 Forumite
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    I’d love to know how you think you’ve been ‘mis-sold’ a PCP agreement!
    Save £5k in 2024 challenge #32
    Saved Total = £3,674.64 / £5,000

    Secured/Unsecured loans x 0
    Credit Cards x 7 (total limit £30,250)
    Creation FS Retail Account x 1
    0% Overdraft x 1 (£250)
    Mortgage x £140,059.06 (Payment 1/360)
    Debt = £1,068.00 (0%APR due 12/7/24, 27/10/24, 25/11/24)

    Charity fundraising goal for 2024 = £1,000 for animal rehoming / dog fostering etc
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Templates rarely work, because they effectively say 'I don't know what my complaint is, but maybe it's in here somewhere, so please can I have some money'.

    Just submit your own complaint, specifying the issue.


  • The_Fat_Controller
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    Please do tell us exactly why you think your contract was mis-sold.
  • hangermanj
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    Thanks for the responses.

    I believe that there was an error when the finance agents (SEAT/VW, and the dealership), authorised the loan, as I realised that as I had a large loan already in place (with a third party-unrelated to this) before the car agreement was taken out. This situation meant it was particularly difficult for me to pay both loans side by side. Also, I tried at the time to get the interest rate out at the advertised one at the time, however, after closer inspection (and my error here) noticed it was 7.7 % apr, and not 4% that the car company was advertising at the time.

    If I write again to SEAT/VW financial services, what do you suggest i use as the mis-selling argument? The adverts promoted on this issue keep say that the dealership is adding their own commission on the loans, but I welcome your constructive thoughts.

    Basically my issues are.
    1. The higher interest rate than the nationally advertised rate
    2. Affordability due to already having a loan in place, when taking on this new debt for the car
    3. The balloon payment that is due soon, I cant afford - Due to recently being made redundant.

    Help please

    Thanks

    Jason

  • The_Fat_Controller
    The_Fat_Controller Posts: 2,006 Forumite
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    edited 7 August 2022 at 1:15PM
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    1. If the advertising said that XX was the only rate available you may have a case, most deals give indicative rates. 
    Highly unlikely to have any case here especially as your signed the paperwork at 7.7%

    2. Your choice taking on the extra loan and you must have passed the credit check.
    If it really wasn't affordable why did you take it ?

    3. No chance of any redress here, balloon payments are an integral part of the contract you agreed to.

    No commission is added to your loan.

    Unfortunately it looks like you'll just have to hand the car back, one of the two choices on a PCP agreement and hope you aren't penalised for too much damage.
  • MrFrugalFever
    MrFrugalFever Posts: 1,237 Forumite
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    edited 7 August 2022 at 1:36PM
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    Also, commission is NOT added on to the loan, a set rate is agreed between manufacturer backed finance house and dealership group, regardless of APR on a brand new car registration (even prior to Jan 21 FCA changes).

    If finance is refused by the main manufacturer finance house, so in this instance VWFS, but you are then proposed elsewhere, say Close Brothers, for example, get accepted but at a higher rate then a separate commission scheme may well apply and yes, it is likely the dealer will receive a greater amount of commission off the back of a higher APR.

    Save £5k in 2024 challenge #32
    Saved Total = £3,674.64 / £5,000

    Secured/Unsecured loans x 0
    Credit Cards x 7 (total limit £30,250)
    Creation FS Retail Account x 1
    0% Overdraft x 1 (£250)
    Mortgage x £140,059.06 (Payment 1/360)
    Debt = £1,068.00 (0%APR due 12/7/24, 27/10/24, 25/11/24)

    Charity fundraising goal for 2024 = £1,000 for animal rehoming / dog fostering etc
  • mcpitman
    mcpitman Posts: 1,267 Forumite
    First Anniversary First Post Name Dropper
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    Thanks for the responses.

    I believe that there was an error when the finance agents (SEAT/VW, and the dealership), authorised the loan, as I realised that as I had a large loan already in place (with a third party-unrelated to this) before the car agreement was taken out. This situation meant it was particularly difficult for me to pay both loans side by side. Also, I tried at the time to get the interest rate out at the advertised one at the time, however, after closer inspection (and my error here) noticed it was 7.7 % apr, and not 4% that the car company was advertising at the time.

    If I write again to SEAT/VW financial services, what do you suggest i use as the mis-selling argument? The adverts promoted on this issue keep say that the dealership is adding their own commission on the loans, but I welcome your constructive thoughts.

    Basically my issues are.
    1. The higher interest rate than the nationally advertised rate
    2. Affordability due to already having a loan in place, when taking on this new debt for the car
    3. The balloon payment that is due soon, I cant afford - Due to recently being made redundant.

    Help please

    Thanks

    Jason

    Wow, you really do have buyers remorse don't you. You even admit in the first paragraph that you know you couldn't afford this commitment when you took it on.

    1. You did know that though didn't you, at the time of purchase, because you were expecting to pay £x p/m then the quote came through at £y p/m.
    2. Higher risk = higher rate, maybe you couldn't afford that shiny new car you signed up for?
    3. Ok so you took on a PCP, worked out the monthly payments, but never thought about what those payments add up to? Balloon payments are as common to car finance as a deposit is for a mortgage.

    Why don't you stop chasing for compo and look at yourself.
    Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....
  • superbigal
    superbigal Posts: 601 Forumite
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    I think most PCPs headline with fixed interest rate and then also mention representative APR.
    Very easy for 4% of the former to actually be 7.7% of the latter.

    I'm currently viewing a deal that describes 49 months 3.04% Fixed which turns into 5.9% APR.
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