A PCP CAR PLAN HAS LEFT ME WITH A SHOCKING BILL

QWe bought a car on a 0%-finance personal contract purchase (PCP) plan. I was horrified to see much later that there was a mileage limit of 60,000 – and by this point I was 13,000 over it. The salesman never referred to mileage limits (although he knew we did high mileage) and I believe I was mis-sold a product. I am both angry and upset as it could mean a €5,000 extra bill.

AIn general, PCP plans are full of pitfalls, not least of which is the fact that you may never get to own a car – you are effectively renting one. You also have to buy new cars, which are the worst value as they depreciate by as much as 40% in the first year.

As with many financial products, built-in complexity can be designed to favour the seller, as you’ve discovered.

However, the fact that the mileage ‘catch’ was outlined in the contract will stand against you.

I know many don’t bother, but people really should read these contracts carefully before signing them, especially when they involve expensive items such as cars.

Your first step, if you want to make a complaint, is to do so to the firm which sold you the package.

If you get no joy there, you can go to the Financial Services Ombudsman – Lo Call: 1890 88 20 90. The ombudsman adjudicates in financial complaints and makes awards when it is decided that consumers have been wronged.

Car dealers who sell these products are credit intermediaries.

As such they come under the regulatory wing of the Competition and Consumer Protection Commission (CCPC), to which you could also make a complaint.

Its website is consumerhelp.ie – or you can phone 1890 432 432.

I also contacted the Society of the Irish Motor Industry (SIMI).

It said: ‘We would expect a company to advise the customer on the conditions of the contract that they are entering into and equally consumers also have a responsibility to understand what they signing.’

You could also lodge a complaint with the society (provided the company is a member) via a link on the website simi.ie.

QWe have been in difficulty with our mortgage for some time but we were refused a mortgage-to-rent scheme on the basis that the loan was too high. I see this scheme has been revamped. Will it offer us a resolution?

AHopefully, yes. The mortgage-torent (MTR) scheme gives distressed mortgage-holders like yourself a chance to have their debt cancelled while staying in their homes as long-term tenants.

The new rules brought in this week increased the loan limits that qualify for the scheme in several parts of the country as outlined in the panel below.

The revised rules also require lenders to inform borrowers why they are refused.

In another significant move, the Government has extended the scheme to include investors who can now buy loans from banks, and it has also been working with non-profit agencies to further extend the scope of the scheme.

The move was welcomed by the Irish Mortgage Holders Organisation.

‘We have been working with many stakeholders to establish an approved housing body, Icare Housing, to buy these homes. This is a not-for-profit body,’ said CEO David Hall.

‘This is a good day and I would strongly encourage anyone in mortgage arrears to engage with a trusted third party.’

Mr Hall welcomes contact from distressed borrowers at david@ mortgageholders.ie.

Meanwhile, Irish firm Arizun is poised to buy in excess of 5,000 distressed mortgages from financial institutions in Ireland under the new rules, it said.

‘A householder... can stay in their own home for at least 20 years if not more,’ pledged CEO Cathal O’Leary.

‘After five years, Arizun will sell the property at market value, but to help the buyer, will also give them 40% of the fiveyear uplift in the house’s value.’