Why Choose Black Horse Finance?

Black Horse is a well-recognised car financing brand because of its strong association with the Lloyds Banking Group. The company has strong roots across the UK. Many individuals and companies prefer buying cars on finance via Black Horse Finance. The company offers easy and flexible payment plans and car financing offers. The people trust the name and authenticity of their service. That is why most of the Britishers prefer to buy cars on PCP or HP finance via Black Horse. 

Personal Contract Purchase (PCP) finance is one of the most demanded car financing solutions in the UK. It is slightly different from a Hire Purchase (HP) agreement. In an HP agreement, the customer is bound to make an initial deposit followed by fixed monthly payments until the entire cost of the car is paid off. Once the payments are complete, the customer becomes the owner of the vehicle. 

In a PCP contract, the customer makes an initial deposit followed by affordable monthly payments and is then given three options at the end of the contract. The three options presented in a PCP deal are

• Retain

• Return

• Exchange the car

Let us understand these options before proceeding with the PCP claims. 

For instance, if you purchased a car on PCP finance from Black Horse Finance, at the end of the contractual term, you have the option to own the vehicle by paying a final lump sum amount, the balloon payment. This is called Guaranteed Minimum Future Value (GMFV).). This is a huge amount and is an optional payment only if you want to retain the car and get permanent ownership of the car. Otherwise, you can return it at the end without paying this amount. Thirdly, you can exchange it for a new car on a new PCP contract. These standard PCP contract offers are available to all PCP contract holders. If you are not familiar with these, you need to consult your car financier or your lender. 

PCP Mis-Selling Claims

The government-backed authority, the Financial Conduct Authority (FCA), has witnessed an increase in PCP complaints over the past years. According to the authority, PCP contract holders who signed contracts before 2021 are facing issues in their PCP deals. The authorities are working on the matter, but they have analysed that many lenders, car dealers, and brokers have charged extra fees or hidden commissions as part of Discretionary Commission Arrangements (DCAs). This practice led to increased interest rates and expensive PCP deals for the customers. Therefore, the customers are demanding refunds for the extra costs that they might have paid as part of the DCAs in their contracts. This trend is commonly named PCP claims in the UK. 

Individuals who have purchased vehicles on PCP finance from Black Horse can make a Black Horse PCP claim. The PCP claims are made on mis-sold PCP contracts. Mis-selling happens when a seller misinforms the buyer about the terms and conditions of the PCP contract. If they eliminate any important information or attribute of the contract the customer can file a PCP claim. 

Furthermore, there are numerous other reasons for mis-selling. For instance, the seller failed to inform the customer about the car’s condition, mileage restrictions and other limitations. They failed to inform the customer about the overhead charges that they might have to pay at the end of the contract, some additional expenses, the balloon payment or other costs. Likewise, if the customer was not presented with a proper distribution of the costs of the contract, they can make a PCP claim. 

Mis-selling can happen due to minor negligence. PCP contracts are tough and difficult for the public to understand. Therefore, it is the ultimate duty of the seller, broker, or lender to explain it properly to the buyer. They should offer the best financial deal suitable for the customer. If they do not offer a suitable deal, the customer may suffer from financial and psychological loss. They can later claim for compensation. Thus, it is always better to take time and understand the contract before finalising any deal. Customers can make a claim on old PCP contracts that were signed between 2007 and 2021. If you signed a PCP deal with Black Horse, you can make a Black Horse mis-sold car finance claim. 

PCP Refunds

If you are worried about your PCP claims, you should hire a PCP claims expert to manage your claim process. This is a time taking process, and it keeps on changing with time. There are new rules, regulations, and other complexities to follow. Therefore, it is recommended that you hire an expert to tackle all mis-selling issues and get you a refund on time. You can check your claim eligibility online for free, and then your PCP claims expert will guide you through the process. They might not charge you anything until you win a refund. This is a no-win, no-fee policy. So make sure you get your money back on your mis-sold PCP deals.