PCP Claims: Get Specialist Advice & Compensation
Do you think you were mis-sold on your PCP or HP finance agreement? Recent court rulings mean motorists may be able to make a PCP claim for unfair sales commission and unfair interest rates.
Check if you qualify to make a PCP claim in minutes
You can reclaim for current and past vehicles
Millions of motorists have been mis-sold
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2 Minutes
100% No Win, No Fee
If you qualify for a claim, we'll work with you on a no-win-no-fee basis, so you only pay for our services if your PCP claim is successful.
PCP Claims Experts
Our specialist consultants and admin team have worked on hundreds of claims, so we're best placed to help you get the PCP compensation you deserve.
Knowledgeable Handlers
Our knowledgeable case handlers can assist in ensuring your PCP claims are compiled most appropriately to ensure they are successful, and your compensation is maximised.
Quick & Easy Process
Once we've decided to take your case, there really isn't much for you to do other than to sit back and let our expert team secure your compensation.
If ANY of the below apply, you may be due compensation via PCP claims:
- The lender did not tell you about sales commissions
- The lender told you about commissions but not how much
- You paid a high interest rate on the PCP finance
- You bought your car in the last 10 years
Check if You're eligible and get an answer in 2 minutes
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You do not need to use a claims management company to make your complaint, you can do this yourself for free. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free or the Financial Compensation Scheme.
Step 1.
Use our online check to see if you're eligible to make a claim.
Step 2.
Talk through your PCP claim with one of our dedicated experts.
Step 3.
Your PCP claims will be made against the IFA, bank or intermediary.
Step 4.
Wait for the outcome and the compensation you deserve.
PCP Finance Claims
Personal Contract Purchase (PCP) agreements are the most commonly sold financial products to acquire a car. With an initial deposit payment, ongoing monthly payments and a final ‘balloon’ payment they make the acquisition of a vehicle feasible for the vast majority of consumers. If any of this rings a bell then you have more than likely signed a PCP agreement and if you did so within the last 10 years then you’re most likely eligible for PCP claims.
Use our simple online check to see if you’re eligible for a PCP finance claim:
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Hire Purchase Claims
Hire Purchase (HP) agreements entail paying a fixed monthly amount to acquire a vehicle, and unlike PCP agreements, they don’t entail a balloon payment at the end of the finance term. HP agreements are most commonly sold to business customers, but it is still possible you have secured this type of loan personally. If this rings a bell, you may have signed an HP agreement, and if you did so within the last 10 years, you’re most likely eligible for car finance claims.
Use our simple online check to see if you’re eligible for a HP finance claim:
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FCA Announces Investigation
In what is a significant step towards compensation, the Financial Conduct Authority (FCA) announced in January 2024 an investigation into finance complaints. The investigation comes after a high number of complaints were received from consumers who believe they have been charged too much on their loans before discretionary commission arrangements were banned in 2021. The FCA will assess the extent of the scandal and ensure consumers who are owed compensation receive it in the best way possible. Originally due to conclude in September 2024, the investigation has now been extended to May 2025. In a statement to Martin Lewis of Money Saving Expert, the FCA's Sheldon Mills says it's still too early to confirm a redress scheme is coming, but it's now "more likely than when we started our review."
Check today to see if you are one of the consumers who could make a PCP reclaim:
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Here are some of the reasons why we're the best in the business for PCP claims.
We understand your rights
As a UK citizen, you have fundamental consumer rights including that any financial product is explained to you with transparency and integrity. PCP has been sold with exorbitant sales commissions built in that are paid, ultimately, by you. We understand how to enforce your right to financial parity in order to reclaim these hidden fees via a successful PCP claim.
A dedicated and experienced team
The team at PCP Claim UK lives and breathes consumer finance claims, so when you work with us, you can rest assured that we’ll leverage our knowledge and experience in your best interests. All you have to do is provide us with information about your PCP or HP agreements and we can take it from there, submitting a legal claim directly to your provider whilst you wait for the results.
High success rate in PCP claims
Our track record speaks for itself. We’ve helped thousands of customers secure the compensation they deserve, and our dedication to results benefits every one of our clients. By joining a growing number of claimants, you increase your chance of making a successful PCP claim and benefit from our group litigation experience.
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Frequently Asked QuestionsHow Have I Been Mis-Sold on My Finance Agreement?
Financial mis-selling is immoral and damaging, causing consumers to receive a financial product or service that isn’t fully in their best interests. Motorists may have been incorrectly advised, therefore losing money, when buying a car on finance. If you purchased a motor vehicle, such as a car, van or motorbike, on PCP or HP finance before January 2021, you may have been mis-sold. PCP claims often arise because of high-interest rates, undisclosed commissions and relationships, and a lack of affordability checks.
One of the most significant ways motorists have been mis-sold is by paying a higher interest rate than they should have. As with most loans, finance agreements when buying a vehicle typically come with interest fees that the borrower must pay throughout the contract period. However, consumers were offered deals with inflated interest rates because of discretionary commission arrangements.
The commission agreements meant consumers paid more interest, allowing the dealer or broker to receive a larger commission fee. Motorists may have thought this was a fixed rate, but there were cheaper deals available that the dealer should have told them about. According to the FCA, the average consumer may have paid £1,100 more interest than necessary.
Dealers not disclosing their commission fees is another reason why motorists have been mis-sold. A claim might be possible if they didn’t tell you a commission agreement was in place or if they did but not how much money they would receive. The FCA estimates that 95% of deals include a commission model and that 40% are believed to be discretionary commission arrangements. This practice, banned in 2021, allowed brokers or dealers to offer customers an inflated interest rate, which they would take as part of their commission.
Buying a motor vehicle is a significant and costly decision, and failing to disclose a commission arrangement can lead to a conflict of interest and a lack of transparency, suggesting the dealer is not protecting the consumer’s best interests. Firms must now reveal the existence of an arrangement but not the amount unless the customer asks.
Under the FCA’s Consumer Credit sourcebook (CONC) guidelines, the dealer or broker must check that you can afford the loan before you sign the car finance agreement. An affordability check looks at your income and credit history to ensure you can cover the monthly payments. You may be able to claim if the company that arranged the finance failed to conduct an adequate affordability check before financing the vehicle.
You may have struggled to make monthly payments alongside your other financial commitments during the contract. You may have kept up with payments but got into debt by prioritising your car finance over other payments. If you had a PCP deal, the balloon payment at the end of your contract may have been more than expected because the dealer didn’t explain it adequately. These are a few areas where the lack of affordability checks may impact you, but you were only mis-sold if you couldn’t afford the deal when taking it out.
Dealers and brokers have a duty to ensure consumers are treated fairly and receive the products and services that suit their needs. Part of this responsibility includes providing motorists with accurate and up-to-date information and advising them of any possible conflicts of interest. If they have a commercial relationship with a lender, such as a commission arrangement, they must disclose this to the consumer.
Many dealers and brokers failed to clearly disclose their commercial relationships with lenders, to the detriment of consumers. Firms must now disclose if they have a relationship with a lender. The dealer must tell the customer how much, if any, commission they will receive from a lender.
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Check NowKey Milestones of PCP Claims So Far
2007
Early Mis-Selling and Ombudsman Limitations
Although awareness of mis-sold car finance has only emerged recently, consumers could have been affected as far back as April 2007. The Financial Ombudsman Service only began handling motor finance complaints on 6 April 2007, meaning claims cannot be made for agreements prior to this date.
2010
Rise of PCP Agreements
Personal Contract Purchase (PCP) became one of the most popular ways to finance cars in the UK, particularly in the mid-2010s. With attractive monthly payment options, it was marketed as an affordable way for individuals to drive a new car. However, the complex terms and conditions were often not fully understood by consumers, leading to confusion about the true costs involved.
2017
Consumer Concerns Begin
Concerns about the transparency of PCP agreements started to surface. The FCA began assessing whether these products were causing harm to consumers and if the market was functioning as effectively as it should. This prompted a growing number of consumers to question whether they were fully informed when signing these agreements.
2018
Financial Conduct Authority (FCA) Investigation
The FCA launched an investigation into the car finance industry, focusing specifically on whether consumers were being mis-sold PCP contracts. This included scrutiny of commission structures and whether dealers provided adequate information about the risks. The investigation also aimed to assess if the sales practices in the car finance sector were fair and transparent for consumers.
2019
FCA Findings and Mis-Selling Reports
The FCA concluded that many PCP agreements were potentially mis-sold. They found evidence that some dealers were inflating interest rates to increase their own commissions, leaving consumers paying significantly more than necessary. This led to a broader call for reforms to improve transparency and protect consumers from unfair practices.
2021
FCA Changes Commission Rules
To address the issues highlighted, the FCA banned discretionary commission agreements (DCAs) that incentivised dealers to increase interest rates. In this model, the higher the interest rate offered to the customer, the more commission the dealer earned. This created a significant conflict of interest, encouraging dealers to push higher interest rates without necessarily disclosing their impact on costs.
January 2024
FCA Launches Comprehensive Investigation
In February 2024, Lloyds Banking Group, the parent company of Black Horse Finance, became the first major bank to prepare compensation in the event of successful PCP claims. Lloyds reserved £450 million to cover potential compensation costs while awaiting the FCA's findings on mis-selling practices. This indicates that the banks believe a compensation scheme may be imposed.
February 2024
Lloyds Prepares Compensation Fund
In February 2024, Lloyds Banking Group, the parent company of Black Horse Finance, became the first major bank to prepare for compensation. Lloyds reserved £450 million to cover potential compensation costs while awaiting the FCA's findings on mis-selling practices. This indicates that the banks believe a compensation scheme may be imposed.
July 2024
FCA Delays Investigation Conclusion
The FCA postponed the conclusion of its investigation, moving the expected date from September 2024 to May 2025. They also confirmed that lenders would not be required to respond to complaints until December 2025. Sheldon Mills, from the FCA, stated that the likelihood of a redress scheme being implemented is now higher than when the review first began.
October 2024
Landmark Court of Appeal Ruling
In what has been described as a landmark event, the Court of Appeal ruled in favour of three consumers against Close Brothers and FirstRand, potentially paving the way for billions of compensation. Following the test case, the judges declared it unlawful for lenders to have paid any commission (not just DCAs) to dealers without the borrower being fully aware. Not only does this decision increase the likelihood of successful PCP claims, but it also has the potential to shake up the entire consumer lending sector.
May 2025
Investigation Outcome
The FCA is expected to conclude its investigation, which will focus on discretionary commissions, in May 2025. If mis-selling is confirmed, a compensation scheme will likely be introduced to ensure affected consumers are reimbursed. Steps will also be taken to establish a clear framework for how compensation will be paid out, including timelines, eligibility criteria, and a process for handling claims efficiently.
You may be entitled to thousands of pounds in compensation if you were affected by a mis-sold PCP agreement. The process to check your eligibility for a PCP claim is quick and straightforward—taking only a few seconds.
Start your eligibility check nowLatest News
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