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

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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
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This article is 5 years old.

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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

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