PCP excess mileage complaint to the FOS and the importance of due diligence


PCP is an area ripe for mis-selling complaints, especially once the PPI gravy train meets its cut off point in 2019.

Author: Nona Bowkis
Reading time: 1 minute

This article is 5 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

In this month’s Ombudsman News, the FOS reported on a case whereby a customer complained about the excess mileage charge at the end of her PCP deal.

The customer claimed she didn’t know there was a 7000 mile a year limit after which excess mileage charges would apply.

The finance company produced the document which stated the 7000 mile limit but the customer claimed she hadn’t seen it. As it wasn’t signed, the FOS decided that the customer didn’t know about the limit and would not have agreed to it and so told the finance company they could not charge for the excess mileage.

As we have said before, PCP is an area ripe for mis-selling complaints, especially once the PPI gravy train meets its cut off point in 2019. It is therefore strongly recommended that dealers continue to review their systems to ensure they have all their ducks in a perfect row ready for when the complaints inevitably come their way.  

Nona Bowkis

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.