Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
IRELAND’S CONSUMER WATCHDOG is to look at whether consumers understand fully what’s involved with a car financing loan called a Personal Contract Plan, or a PCP.
A PCP involves paying between 10-30% of the value of the car at the start of the contract; then paying monthly installments, usually lasting between 3-5 years at a low-rate; and finally paying a lump sum at the end of the contract if you wish to buy the car.
The deal is especially useful for those who don’t want to own a car, and can skip the final purchasing step and jump to another PCP loan, effectively renting a car instead of owning one.
The launch of the investigation comes as the deal is becoming increasingly popular in Ireland because of the low-monthly repayments.
A spokesperson for the Competition and Consumer Protection Commission (CCPC) Fergal O’Leary told Morning Ireland it’s ”probably the only way that new cars are being financed”.
O’Leary, who oversees the Consumer Enforcement division of the CCPC, said:
When you get into the amount of money that’s involved, your €30,000 €40,000 €50,000 – there is a lot of exposure for consumers in this market.
He added that the investigation would look at whether consumers understand the deal on offer, what are the experiences of customers, and the terms and conditions contained in contracts.
O’Leary added that although there had only been a small number of complaints about PCP loans, what’s causing concern is “they’re asking fairly fundamental questions about products”.
He said that questions like, ‘Who owns the car?’ and ‘How many contracts do I have?’ were asked, which were “very fundamental questions that people should understand before they take out these finances”.
They are complex products, and I think what we need to find out is: do consumers understand fully what they’re signing up to when they agree to buy one of these products, and have consumers had problems?
With a PCP, you have one contract with the garage, and another contract with the credit union or bank that the PCP loan was taken out.
At the end of the contract, the minimum final payment to own the car – or the Guaranteed Minimum Future Value (GMFV) – will have been decided at the beginning of the contract. It takes account of the type of car you are buying; the length of the contract; the condition of the car at the end of the contract; and your annual mileage.
With a PCP loan, you don’t own the car until the last payment (GMFV) is made.
Fianna Fáil Spokesperson on Finance, Michael McGrath welcomed the investigation today, but also outlined some of his concerns around the lack of regulation and authorities’ responses thus far.
He said that the CCPC made the government and the Central Bank aware of their concerns previously, but that no action was taken. He also expressed concern that no data had been collected by authorities on the number of PCP loans in Ireland.
“As of now nobody in the CCPC, Central Bank or Department of Finance knows how many PCPs exist and crucially how many customers are defaulting,” he said. “It is in the best interest of all concerned that these issues are addressed.”
It will take three or four months for the CCPC to produce an initial study, and depending on what the problems people have had with PCP loans, new regulations could be put in place by the Commission.
You can learn more about PCP loans here.
To embed this post, copy the code below on your site
This is very, very hard to believe. Infuriating.
Its like theyre trying to see how far they can push us before we actually do something!
. . . and with those FF vultures circling the carcass that Ireland is at the moment I wouldn’t be overly optimistic about the future.
Its time to stop looking for scapegoats in our past . Its FG and Lab in power , FG voted with FF that night in the Dail . It is a FG minister who is ripping the Health dept to shreds and causing suffering and pain to the most at need. THE BUCK STOPS WITH FG/LAB.
We can’t afford to help but we can afford to pay the president 250 thousand euro a year
gas, Former Stalinist Workers Party hacks introducing disability cuts whilst their bloated perks keep on growing.
Reading comments above and below..It’s important to remember , THEY DON’T CARE! Really they don’t! It’s all about keeping the EU / State pot full for their pensions. If you believe otherwise you’re living in cloud cuckoo land.
sean hyland there is a lot of truth in what you say but the people are brainwashed by the goverment media machine RTE ,
No shortage of money when this excuse for a public representative decided to give her husband a job.
Her husband who is also a convicted criminal and a former member of an illegal terrorist organisation.
still dosent make it ok Minister !
But the illegal charging of VRT is ok for them…
What about making the junkies pay when they get on the bus and reinstate this allowance for those who really need it……..
Very true Niall
Where are these figures coming from?
It doesn’t add up.
Everything they’ve tried is illegal, so they shut it down?
It smacks of a petty and vindictive attitude.
As pointed out yesterday a Dublin Td can claim 12000 euros to drive to work.
Something is seriously wrong at the heart of this state.
Funny how the government is happy enough to ‘loosely apply’ the law sometimes…when it suits them (promissory notes…)…and to ‘regretfully’ follow it to the letter at other times…when it suits them.
Shameful.
It’s a bloody disgrace, SHAME ON YOU ALL
i agree , introduce more taxation to pay the allowances ! that is the simple solution.
So exam afford 64 billion euro for private banking debt but not 150 million for the people who built this country..
labour are following in the Greens footsteps. Pity your pensions won’t be illegal, just immoral
Kathleen said the scheme was illegal, the scheme was not illegal, the age restriction was as it discriminates. More spin and lies.
It’s all going to be all right as i just heard the minister say” she understands the hardship that people will go through by not getting this anymore”, what a load of shite, bankers bailed out, public sector workers sold out, families losing child support, I was taking to my brother in law in America last night about the state of what’s going on in Ireland and he can’t understand why there hasn’t been a revolt and strikes
Smudge , who the hell cares what your brother in law in America thinks?
Yep Smudge, as Christy Moore rightly said “we have become a nation of shit-takers”
There is a protest being held at the Dail on March 16 at 4pm,,, and not being organised by the unions, just ordinary members of the public.
Basically she is saying that we cannot afford it. And on the face of it yes we can’t afford when we have to pay 70 billion to bondholders. Get rid of them and we can afford anything.
why are we still giving €638 million in aid to Africa every? There are now hungry children in Ireland there are people who cant afford to heat the houses and people who committed because they can’t see a way out
A typical Irish answer to an Irish problem .We leave our Government rob the poor and the answer is lets take it off the even worse off. They wayout is not starving black babies to death .
@ Jack Daniels, – Since Western nations started pouring money, food, medicine, etc. into Africa, the native population has increased more than FIVE fold;- from 200m. to 1,100m.
If I had half a dozen starving, emaciated children, the last thing I would do is have one more, – let alone another half-dozen, Unless of course, some fool was sending me free food, clothes, money etc.
Then I may as well bang away…
Is that you Kathleen.I think you may find they keep having children because their uneducated and like the Irish of old not so old there ancient beliefs encourage it.Do you think a woman wants to get pregnant straight after seeing her child starve to death i dont know maybe the are so traumatized about the life they have they might just think differently to us.Maybe if the ignorant men stopped raping them out of misery and boredom the woman might have a chance The Western World has destroyed Africa and yo begrudge them food. Join FG they will have a job for you and Suzanne.
By god those those starving folk in Africa need to learn a little personal responsibility!
@ Jack D. – youre innocence is pitiful. You said it yourself, education is the answer, although I have a sneaking suspicion that they know where babies come from.
If it is, as you say, a country full of ‘rapists’, then I say to hell with them. We are only helping to feed & breed the rapists of tomorrow.
Charity begins at home.
When you are starving, you will sing a different tune, & your African buddies won’t help you, rest assured of that.
My innocence is pityfull.Enjoy the world you live if you do then you truely are a man/woman of vision and empathy.Stll have’nt figured out why we are in this mess its because people only think of themselves and when the tough gets going the rough get tough.Spin your hate some other to heartless me feiner.Your ignorance is pityfull .Irish people say nothing about paying billions to unsecured bondholders but like the idea of supporting Government policy here Cuts to Aid in Africa.Famie you should remember it happened here a few centuries ago.Never said it was a country full of Rapists.No point talking to you and do you think i will leave myself starve if there’s crops in the field because a hardlined person says i cant eat it.No way BOSSMAN. Not this oppressed slave .Remember people the African never Bankrupted my country .Anyway back to people with disabilities been shafted.
Trek.You should change your Avatar you are doing the Great Man a disservice.Peace ya sure.
@ susanna smyth:
with people like you among the electorate of this state, it’s no wonder that er have FG/Labour in power.
so the starving children of the third world are to blame ??
& not FG/Lbaour ??
maybe Susanna Smyth’s real name is Kathleen Lynch ?
” Peace ya sure.” – ??
Ghandi once famously said;- ” it is better to be violent, if violence is what is in your heart, – rather than hide behind the cloak of peace to conceal your impotence. ”
I just tell it like it is, if I speak the untruth, please feel free to correct me…
Why not start on the top… The politician gravy train needs to come off the rails…. They’re an absolute disgrace in every sense of the word.
Could some clarify if Kenny will be entitled to 4 pensions?
He’s not even entitled to one pension let alone 4. Take to the streets NOW.
Wait till you see what they have planned for the disability sector as a whole with their value for money plan….. Smoke and mirrors that will see Services diminished and cheap agency staff on 9 month contracts. Now that’s service for you.
Emily O’Reilly tells them the scheme is illegal/unlawfu etc etc and then claims to be surprised when they shut it down. Puuleeease
Emily O’Reilly said excluding over 65′s was illegal. She never said the scheme as a package was illegal.
If excluding over 65′s was illegal and the scheme excluded over 65′s then the scheme was illegal. QED.
Don’t be so facetious, you can remove the age limit and keep the scheme. This is about cost!
Since when is stating facts Facetious? If the scheme was illegal and there was no way to porperly amend it, to make it legal, then it has to be discontinued and a new scheme put in place.
Seems like they can afford everything but their own people.Wait until the Fiscal Treaty kicks to full swing.Have you slowly got used to the unthinkable cuts that nobody expected when the Coalition swept into Government,Yes! good because there’s loads more to come.Next time im in the bookies and my bet does’nt come in im going to ring my friends and tell them go to Enable Ireland and shakedown the disabled because that’s what their there for .People around the world must be thinking do you know what the Irish are doing taking the wheels of the disabled people’s wheelchairs to pay Bilionaires.. jesus their ruthless ignorant people.I agree.
What a pathetic excuse for cost cutting. This decision will be recinded because the government has no idea of the reaction it will create. The organisations for the disabled, their families and friends as a group will take to the streets. Hang your head in shame Kathleen Lynch. Who advised her on this gem? Her husband who was charged with criminal offences. I mean, he would know what is legal and what is not.
When will people learn that they are only getting started people need to stand together in this country and fight for their rights
Kathleen Lynch is a disgrace. She is part of the most inept, uncaring and selfish group of people to ever govern in this state. Their only priorities are looking after the rich, the bankers and the bondholders, oh and protecting their own extravagant salaries and expenses and making sure their own massive undeserved pensions are protected. After that they don’t care. The Taoiseach might shed an odd tear sometimes but they are crocodile tears. He is totally out of his depth as a leader and he presides over a useless crowd of chanchers who are driving this country over a cliff. Kathleen Lynch is in good company. There is not one single decent human being among them.
One word Mrs. Katherine Lynch TD, SELLOUT!!!!!!!
This is a disgrace. How can she even start to defend this. I don’t know how these people look in the mirror in the morning knowing they are ruining people’s lives.. They will do anything the troika tells them to do. What is the point if them at all.. Highest paid administrators in the world.
She’s as much right to defend that hair colour :/
VRT has been ruled illegal. So when will this very legal compliant government shelve this tax as well??
I think the Labour Party has taken a step back in evolutionary terms, their backbones have disappeared.
Seriously though they really are a disgrace, worse then Fianna Fail, because these guys claim to represent something better.
It seems these Labour ministers are quite willing to step forward and publicly associate themselves with these draconian attacks on the citizenry…. No surprise there as it’s plainly obvious now twas the oul ministerial pensions these pups were after all the time. They knew from the day they took office they would not be re-elected because of their betrayals and lies. This is a new low, even for these duplicitous scam artists.
It has become a very rewarding game for politicians . They get into office – do what the Establishment and the Rich want . then they get thrown out – but collect many rewards – including Pensions – and a new lot get in and do exactly the same thing .
We are utter fools to put upwith this scam . Why has Leinster House not been burned down . If voting cahnged anything – — we would not have the vote .
Its called ” demcoracy ”— which it is not.
“€208 per month to 4,700 people”
Here, I know where we can get the money and have a tonne of it to spare. Let’s raise TD pensionable age to the national standard and max it at €100k (or less). Job done and enough to spare for other services.
Any politician making cuts that does not address the injustice of Ministers / TDs pensions is a complete self serving spinner of truth… ie a liar. No question.
Jack Daniels Yes the western world destroyed Africa. Germany France Portugal Spain Holland NOT Ireland. We have never invaded anywhere yet we pay more than countries that have been there and exploited their resources. The Chinese are doing it now
@ susanna smyth
we were the victim of invasion ourselves & our people were destroyed by a great famine.
those who died in our ‘Great Famine’ were just as blameless than those dieing of hunger in the third world, as we speak.
People are seeing red over this issue. It is very similar to the medical card for the over 70s. Very wealthy people would have got this allowance if it was left as is.
New scheme will come in but handled very badly. Political potshots been made. If the did nothing outrage would also be made. It was not the current government they are dealing with the mess left behind
I know god love them they dont have any choice\options\responsibility, its all the other crowds fault.
Can any of our elected reps take any ownership or responsibility. Bunch of spineless cowards.
Its another intentional diversion so we are kept focused on this and not some other issue.
Possibly the new annual centi-million euro illegal tax on data transfers that they will push through.
Poor FG and Lab. They canvassed tirelessly in early 2011, telling people that they didn’t want to go into Government. They said they had no solutions. Yet people voted them into power, totally against their will.
And now, as they didn’t want to go into Government, why should they take any responsibility for their actions? It’s just not fair.
Ronan, don’t forget when the next lot come in, they’ll be blaming the current crowd, and so on and so forth.
Am i allowed say Lying Beitch?
Say it again, louder this time!
I am a deaf person and the grave robber took E18 out of my E62 monthly household benefits that I dependend on to pay for heating in the house. I sent two letters to them but these went unanswered. I did expect a cut but not as bad as this.
I can see some merit in not paying an allowance to over 65s if they already can avail of free transport where available. Surely something could’ve been worked out, this sounds completely immoral.
Neil Finley if you could take your head out of your arse you might think more clearly a disabled persion wheather 65 or 25 cannot use public transport that is why the need this grant?
There is no need to be rude when making your point Michael but fair enough point all the same. There are varying degrees of disability, maybe a system of providing a grant based on need rather than a one size fits all?
omg enda on tv,, someone shoot him,,, he keeps saying same shite,,, no cuts,, but its going to get cut in 4 months,,,think his working from a script and cant come up with answers,, why dont they let his speech guy have an ear piece,,, he will let the disabled go back up to dublin i am just praying weather warmer for them,,, lynch is like the rest of them heartless,, heartless heartless,, cut your friggin pensions and help them,, its been illegal for years,, so why cut them in 4 months,,, they have not come up with a solution in the last 2 years,, what makes them say they can do it now in 4 months,,,,, no chance it will be fixed in 4 months,, we need to stop fg and labour now,, they are out of control,
Wagon!!
Come to think of it, when did Kathleen Lynch leave Home and Away?
Ah minister sure there’s a lot of things in this country that we cannot afford , yet are paid out
check the corridors of planet dail eireann you will find most of them there .
I would list them , but I,m too busy busting my arse working to try and keep the roof over my families head , while you parasites bleed us dry
Shocking. This is a government of cuts, cuts, and more cuts. Everytime they cut they take money out of the economy and push more people into difficulty. They have hit the children, now the disabled, the sick are suffering from reduced care due to staff shortages, who are what is next when they show no regard for the most vunerable in society. I expected this of FG, but hoped labour would stop the worst of it.
How about charging google the proper 12.5% corporate tax rate there an extra billion in that alone.
That’s just great! It costs too much to extend the scheme to the over 65′s so we’ll just withdraw it altogether?! Is there no limit to the small-minded meaness of this government. And have they even bothered to cost extending it?
Well how else are they gonna fill the coffers before emptying them for the ECB
They say that every other option that they came up with was also illegal….so why don’t they publish all the other options that they came up with so that we can see for ourselves?
the promissory notes were illegal too but that didn’t stop the ICB, ECB and the rest from going along with them until a member of the public started to expose their illegality!!
Minister of State for Disability, Equality and Mental Health Kathleen Lynch? Equality her and shower dont understand the meaning of the word pity they dont cut half the dail her been first that would save a lot? then they could leave people with a disablement alone O’ come on election time.
This will end up being illegal and unconstitional Im sure…and if not its off to the European Court of Human Rights we go!! These people make me sick!
I get the 104 eu per month.I had too. Prove I couldn’t walk too 3doctors .I use the money towards my rent . I live on 188eu per week I’ll be screwed .
I knew it was only a matter of time that the imbeciles in power here tagged on to what their esteemed counterparts in England are doing next they’ll be ruling that people with severe physical and intellectual disabilities will be fit to work, this is beyond reprehensible just when we were left wondering how the government could get any lower
Right who downvoted my comment this isn’t a democracy (at least not here in Ireland proper)
I wonder why they are announcing all these cuts in a couple of days of each other, get the people angry for a couple of days and they wud get over it next week, I wonder who else r cuts are going to happen in the next few days
Peter to you know that the Dept of Health & The HSE doesn’t recognise IBD (Crohn’s & Colitis) in children as a lifelong disease, even though adults can and do supper from IBD (Crohn’s & Colitis).
Stripping out the infrastructure of the country piece by piece.these traitors need to be removed.
This move to axe the mobility allowance without first providing an alternative is beyond a disgrace, it’s actually kind of sick. To try and defend this type of action is also indefensible. I feel enraged to feel that this kind of thing can be allowed to happen – we can’t afford it – what a silly silly thing to say! A cynical ploy by an increasingly cynical Government. I spoke to one person today who received a letter from the HSE saying their payment would cease from June 26th. This represents a 20% CUT in income for this man, who is wholly reliant on this payment to get around, to be as independent as he can be, like the rest of us. The payment was means tested so he would not get it had he not deserved it. No explanation, no replacement just mindless drivel from a Labour minister, who is supposed to be a member of a party who protect the vulnerable, who stand up for equity and fairness?! Yeah right! I am incensed, outraged. I just can’t believe it. It’s time we did something about it…. It’s time I did something about it….
Where’s Vincent Dolan? He spent a lot of time yesterday insisting that those who predicted this were just incapable of comprehending the Fool-a-Gael press release. Vincent, we need to tell us this ain’t so.
have your say