What We Do Best
Common Debt Solutions
The five main debt solutions include snowballing debts to improve credit, a Debt Management Plan (DMP) for reduced payments, a Debt Relief Order (DRO) for smaller debts, an Individual Voluntary Arrangement (IVA) to protect assets, and bankruptcy for a quick fresh start.
Snowball Your Debts
Snowball Your Debts Best if you can make at least the minimum payments each month and your debts are decreasing, not growing. This approach improves your credit rating over time, unlike other solutions that may negatively affect it.
A Debt Management Plan
nvolves paying less than the usual monthly payments while creditors freeze interest—this is often agreed upon. Can be a temporary measure, e.g., until you secure another job. Payments can be as low as £1 per month, though these are typically holding measures rather than permanent solutions.
Debt Relief Order (DRO) or IVA (Individual Voluntary Arrangement)
A great option if you owe less than £30,000 (this limit increases to £50,000 in June 2024), have less than £75 in monthly disposable income, and don’t own a house. Individual Voluntary Arrangement (IVA) - suitable for those with a steady income and assets to protect, such as a house with equity.
Victim of Irresponsible Loans
"irresponsible lending" or "unaffordable lending." This refers to situations where a lender fails to properly assess whether a borrower can afford a loan without undue financial hardship, as required by regulations set by the Financial Conduct Authority (FCA).
Your Rights
Lenders must assess whether the borrower can make repayments without compromising their ability to meet other financial commitments, such as household bills or living expenses. Consumer Credit Act 1974: This law regulates consumer credit agreements, including car finance, and provides protections for borrowers.
Recourse
Breach of FCA Rules: The FCA requires lenders to ensure loans are affordable, and failure to comply can lead to a complaint through the Financial Ombudsman Service (FOS) or legal action. If a loan is deemed unaffordable, borrowers may be entitled to redress, such as a refund of interest or fees, or adjustments to the terms of the loan.
You could be owed £Thousands
Financial Claims Experts
Where you forced to take out additional loans due to irresponsible lending?
How much interest are you paying?
Please remember there may also have been fees added to the finance too.
There are three less common debt solutions to consider. Full & Final Settlements are ideal if you’ve been on a Debt Management Plan (DMP) or unable to make payments for some time and now have access to a lump sum to negotiate settlements. Write-off debts are usually only an option in exceptional circumstances, as creditors rarely agree to this. Administration Orders, once more common, are now extremely rare, with only 16 issued in England and Wales in September 2016.
Find the potential cost of your PCP finance
**Note: For exceeding 120 no. of payments, a group of 12 payments will be combined into a single payment number for better chart visibility.
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, claim approval, agreement or advice by Claims 4 PCP. It does not take into account your personal or financial circumstances.
Don’t Compromise When It Counts Most - your peace of mind
Non-profit, independent, and unbiased website dedicated to helping you get out of debt
If you’ve experienced financial hardship due to unaffordable repayments, we’re here to support you in achieving financial fairness.
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Facing hardship?
If you’ve experienced financial hardship due to prioritizing car finance payments over other essential bills or obligations, your loan may not have been genuinely affordable or if your lender failed to conduct proper affordability checks or acted negligently you could reclaim what you’re owed—whether it’s a refund, compensation, or both.
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Irresponsible lending?
We assist individuals who: Purchased on car PCP finance only to discover it was unaffordable. Found themselves juggling debt, household bills, and living expenses due to prioritizing loan payments. Were misled or poorly informed about the terms of their finance agreements.
Financial Claims Experts
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Experienced
Let us help you, we understand the emotional and financial toll that unaffordable PCP finance can have. Our goal is to provide you with the support and solutions you need to regain control of your finances and reclaim what’s rightfully yours. Contact us today to find out how we can help you take the first step toward financial fairness.
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Making a claim for unfair discretionary commission charges or unaffordable car finance could result in significant benefits, including a refund of overpaid interest and additional compensation, such as statutory interest (typically 8% per annum). Beyond financial reimbursement, a successful claim can alleviate financial strain, helping you regain stability and control over your finances.