'AMBULANCE-chasing' firms who are facing the deadline for PPI claims are now turning their focus on 'mis-sold' PCP deals, according to a car finance expert.
Graham Hill, former director of the NACFB (National Association of business Finance Brokers), has slammed legal firms for being 'vultures'.
With claims for PPI outdated on August 29, 2023, Hill believes that the sector grown from mis-sold payment protection insurance will need another outlet to carry on business.
PCP-specific law firms happen to be set up to offer consumers legal assistance for allegedly unjust payment plans.
Car finance deals constitute a whopping 90 percent of new car sales in the UK, according to the latest Finance and Leasing Association figures for that 12-month period as much as July 2023.
Meanwhile, the FCA (Financial Conduct Authority) is releasing a full report in to the sector after the month, following a year-long investigation including mystery shoppers.
However, its initial findings published in March this season stated that the contracts are "generally transparent" with "clear and consistent" terms.
Hill said: “The claims industry that was raised around the PPI mis-selling scandal was never simply likely to just fade.
“These firms have finally firmly set their sights on PCP customers because the next big cash cow.
"The hope among claims agents is that the FCA's report the following month [sic] kicks up enough dirt on poor selling practices among car dealers that ambulance-chasers can then set references – or even precedents – in the court to legitimise their claims.
"We're already seeing these vultures getting in front of the game and hosting pages on their sites encouraging customers to come forward when they think they have fallen foul of mis-selling.
“Unfortunately, that's towards the detriment of customers who'll end up parting with millions as these firms look to have a cut of the compensation payouts – whereas anything awarded by the Financial Ombudsman Service goes entirely to the customer.
“It's worth noting that, while there are certainly plenty of examples of misrepresenting PCP deals, the merchandise is a solid route to car ownership.
"There is a risk that by talking on the car finance market in general that customers revert to financing vehicles outright from their own savings.
"This could ultimately stymie development in the brand new car market as consumers steer towards cars – typically second-hand – they are able to purchase from digging to their own savings.
“It's vital that the differentiation between the product itself and also the chance of mis-selling is created clearly.”
A spokesperson from The Law Society told Sun Motors: "People should be cautious when seeking legal advice.
"Anybody who needs legal advice should ensure they make contact with a regulated solicitor.
"Solicitors are a highly regulated profession with strict rules around professional conduct.
"Others offering advice, including claims management companies, might not be regulated or offer any protections to consumers."