Your Guide to PCP Compensation Claims

You can begin your claim for being mis-sold on your PCP car finance agreement using our free online checker to see if you are eligible. The checker will ask a few quick questions to see if you meet the criteria. We will let you know if you qualify, providing an answer in minutes without requiring you to speak with a member of our team.

To proceed with a claim, you can continue through our online system, where you can provide more information about your agreements and any necessary documents, including identification and a signed letter of authority. Our experts will assess your claim and notify you if any additional information is required from you. We will contact your lender(s) and negotiate a compensation settlement that accurately reflects the damage caused by the mis-selling.

We will keep you updated on your claim every step of the way.

An investigation by the Financial Conduct Authority (FCA) has found that car finance lenders mis-sold customers when selling vehicles on finance plans. Lenders charged customers higher interest rates to ensure they received higher commission fees with a practice called ‘discretionary commission arrangements’, which have since been banned.

This type of claim is to right the wrongs of being mis-sold car finance on a PCP or HP agreement. You are a victim of mis-selling if the dealer didn’t inform you about the commission involved in your agreement, including how it works and its size. Dealers should clearly explain the financial agreement, including fees and terms and conditions, before you sign it.

Several factors influence whether someone can make a claim or not. To make a compensation claim with PCP Claim UK, you must have purchased the car under a finance agreement. Claims can be made on both PCP and Hire Purchase agreements. The vehicle must be your own, not a company car. You must be a UK resident and have bought the vehicle between April 2007 and January 2021.

If you meet the above criteria, the next step is to assess whether you were mis-sold car finance. We will work with you to identify whether there is sufficient evidence that you are a victim of mis-selling. Examples of mis-selling include unfair or excessive commission arrangements.

In January 2024, the FCA announced an investigation into the mis-selling of car finance. While they investigate, they have paused the deadline for firms to respond to customer complaints. The deadline for lenders to respond to complaints is currently 4th December 2025. Following a recent Supreme Court ruling, the FCA confirmed it will launch a consultation on a redress scheme by early October 2025. Therefore, we will know more about potential compensation, including timeframes, in October. The FCA hopes that affected consumers will start receiving payouts in 2026.