Causes for misselling of your PCP car financing agreement
The contract didn’t elaborate on the commission/bonuses earned by the salesperson.
The interest payments were not explained accordingly by the salesperson.
The car dealer failed to elaborate on who has a legal claim for the vehicle, whether that is the car dealership or a 3rd party finance/leasing company.
The salesperson didn't clarify who is monetarily liable for the expense of repairs to the vehicle.
A broad and exhaustive range of choices wasn’t brought forward to your attention. Other financial products or services could have made more financial sense in your specific case and worked out 50% less expensive than a PCP deal.
Investigation report directed by the FCA concerning the misselling of Car Finance (PCP)
The information shown below comes from the Financial Conduct Authority (FCA) in which the FCA sent mystery shoppers to 122 car dealerships; these were their findings.
Out of the 122 car dealerships visited by mystery shoppers, just 11 car dealerships confirmed that they would add a commission to this type of deal.
Only 31% of dealers fully explained to the customer that they do not own the vehicle at the end of the contract unless they pay the balloon payment in full.
28% of the car dealers failed to outline the consequences of missed payments.
The FCA has estimated that the missold car finance scandal may have cost UK consumers £300,000,000 per year.