Consumer watchdog to investigate PCP finance deals

The Competition and Consumer Protection Commission has commenced a study into the Personal Contract Plan (PCP) car finance market.


PCP is a form of hire purchase that has become increasingly popular in the car finance market in recent years. However, a growing chorus of consumer concern is forcing the state body to investigate such arrangements.


Many car dealers now market PCP as their primary method of finance, according to the CCPC. Its study will examine the level of understanding of PCP contracts, while also assessing the information given at the point of sale along with the overall experience of consumers.


Of particular interest of the probe will be overall understanding of the those that have used PCPs as a means of financing their car purchase, including the structure of the product and the options available to them at the end of the agreement.


The CCPC announced that following its study of the PCP market, it will make a determination whether current PCP arrangements are fit-for-purpose and if necessary, changes to existing arrangements.


Commenting on the probe, Chairperson of the CCPC Isolde Goggin said: "...these products are relatively new and considering their complexity there is potential for consumer misunderstanding and detriment if they take out a product that may not be suitable for them."


"The information gained through this study will guide our future work and form an evidence base that can be used by policy-makers to assess the suitability, or otherwise, of the current consumer protection regime."


Great finance deals from your credit union…with no hidden surprises!

At St. Joseph's Credit Union, you can get a great car finance deal with no strings attached...with no surprise balloon payments either. At just 5.9% / 6.02%APR, you can plan your car payments with comfort knowing exactly what you will repay over the full term of the loan.


"We put our members first" said Edel Bourke, CEO of St. Joseph's Irish Airports & Aviation Credit Union.


Balloon payments, sorted!

Members of St. Joseph's that may be coming to the end of their PCP car finance arrangement can be liable for a significant PCP balloon payment. Such balloon payments can be as much as €2,000, €3,000, €5,000 or more! 


"PCP balloon payments can come as a big shock to a lot of people. Some may not have the means of making those payments. Here at St. Joseph's, we can help our members through that and for PCP balloon payments, we make those arrangements available at preferential car finance rates of 5.9%/6.02%" said Ms. Bourke.