Do I have a leg to stand on when it comes to Mis-Sold PCP for my vehicle?

[Bluebell77]

So I took out a PCP agreement with my local dealership about 2 years ago and had service plan included and everything. Looking over my paperwork a few months ago I noticed that it said on my contract that it was a Motorloan with Balloon and thought nothing of it as I knew that a PCP was a type of loan and you have the option to pay the amount at the end to own the vehicle. However, about a month ago I noticed that the contract said it was not a PCP which I then panicked because I specifically asked the seller if it was a PCP and he said yes. I also phoned the Fiat Finance and they told me I wouldn't be able to hand the car back for VT until December 2021! I am seriously considering taking this to the financial ombudsman because I have paperwork from the dealership saying and identifying that I wanted a PCP contract with the paperwork specifically stating that ' You have confirmed that PCP is the right product for you' and at the bottom is says you have chose to purchase the recommended cover which is a PCP.*

Does anyone have any advice, should I maybe go to the FCA instead?*

[luxardo]

I am not sure what your problem is here ?
Do you want to do an early VT and have been told you can't ?
You say you have discovered your contract is not a PCP, well what is it then ?

Usually you can VT as long as you have paid 50% of the balance.

I had a similar case a few years ago. Dealer said car could be handed back or exchanged at any time within the lease period. Then forgot to mention a clause stating that the full interest for the entire period of lease had to be paid if it was terminated early.

I would have to see the contract to comment further but some general information I can give you is :-

A PCP includes a balloon payment enabling you to buy the car at the end of the period.
A PCH is a simple lease with no option to buy at end of period.

If your deal mentions a payment (optional final payment) to made at the end of the period and gives an option to buy then it is probably a PCP in some form,

[Bluebell77]

So my contract specifically states that it is not a PCP and I contacted the my* fianance company and they said I wouldn't be able to hand back the car until December 2021.*
So I am stuck paying for the car and I don't have the option to VT.*

[luxardo]

Your contract actually states THIS CONTRACT IS NOT A PCP ?

And it actually states the wording "Motorloan with Balloon" ?

"Motorloan with Balloon" is not a legal term as the word "balloon" is ambiguous and has no meaning in law. In fact neither does motorloan.

Does it make no mention at all of an optional final payment ? This is what a balloon payment is (the legal term).

What is the period ?
You say you took it out 2 years ago so 2018 and can hand it back in 2021
That's 3 years, is it a 3 year agreement ?

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[R0b]

Motorloan Balloon agreements in my view are deceiving because they replicate PCP/HP agreements except that they are just a personal loan with a lump sum payment at the end of the repayment period. So the finance co. doesn't hold any interest in the vehicle, ownership automatically belongs to the debtor.

If you've got paperwork to say that it's a PCP I would seriously suggest you take it to the FOS. You might want to refer to the FOS decision below where the debtor was in similar circumstances to yourself and the complaint was upheld.

https://www.financial-ombudsman.org....DRN0499429.pdf
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