PCP issues

[RoadUser]

Good Evening!

A bit of clarification, are the PCPs arranged via MG dealers non-standard as such? As according to the finance company they say there is no option to terminate it early after paying the 50% of value as it's not an option in the contract even though they say it's a PCP deal. Doesn't this go against consumer regulations?

Thanks
RU

 

[siteguru]

(AFAIK) If it's a regulated financial product then the 50% voluntary termination option is a legal right - there's no need for T&Cs to state this.

 

[RoadUser]

Thanks. So they couldn't override this either then by excluding this?

 

[tsedge]

Are you sure your a looking at PCP, not a lease?

Leases are inflexible - that's the big drawback of them.

 

[RoadUser]

While it was presented as a PCP and structured like one, it doesn't appear to be a PCP.

This is an extract.

The credit provided under the agreement is made by way of a fixed sum loan and as such, you do not have the right to voluntarily surrender the vehicle under s.99 of the Consumer Credit Act 1974.

 

[admiralross2400]

Yeah I came across this too. Turns out it's a personal loan and not actually held against the car. There's been a few complaints sent to the ombudsman about it. They upheld one under very specific circumstances, the rest they didn't uphold as it's pretty clear in the T&Cs...

They say to uphold it you'd need some evidence from the dealer that they pushed it as a PCP loan specifically and sold it to you as such.