Understand Your Compensation Options
Learn how compensation for a mis-sold PCP agreement may be calculated and who may be eligible. Our guide explains the factors that can affect your potential compensation and what to expect when making a claim.
Could your agreement have been mis-sold? Use our free eligibility check to find out.
In this guide, we explain everything drivers need to know about car finance claims, including how agreements may have been mis-sold, why customers could be due compensation, and what factors may affect eligibility.
Many PCP, HP, and other car finance agreements involved commission arrangements that have since been declared unfair, leading drivers to pay more than they should have. This guide breaks down the key issues in simple terms, helping explain the claims process, what evidence may be needed, how compensation is calculated, and how to get started with a claim.
Whether you’re unsure if your agreement qualifies or you want to understand the claims process in more detail, we will provide a clear overview of what you can expect.
You can begin your PCP claim by using our free online checker to see whether you may be eligible. The checker only asks a few quick questions about your motor finance agreement and can provide an initial answer in minutes, without needing to speak to a member of our team.
If you can proceed with a claim, you can continue through our online system and provide further details about yourself and your agreement. We will collect information about your lender, the finance plan, and any documents needed to progress the claim, such as proof of identity and a signed letter of authority.
Once we have the required information, our team will assess your claim and let you know if anything else is needed. We can then contact the lender on your behalf and work to secure compensation where the agreement was unfair or mis-sold.
We will keep you updated throughout the process so you know what is happening with your claim.
Compensation claims are being made by consumers who may have been mis-sold on their motor finance agreement. The central issue focuses on how certain agreements, including Personal Contract Purchase (PCP) and Hire Purchase (HP), were sold. An investigation by the Financial Conduct Authority (FCA) found that lenders have charged customers with unfair commission fees (including discretionary commission arrangements, which are now banned) and excessive fees.
Claims are designed to put things right when a customer has paid more than they should have or when they were not given the information needed to make a properly informed decision. The FCA has unveiled an industry-wide redress scheme to compensate affected consumers. The scheme applies to millions of motor finance agreements made between 2007 and 2024, with an estimated average payout of around £829 per agreement.
You can make a compensation claim if you bought a vehicle using a finance agreement, such as PCP or HP, the agreement was taken out between 6 April 2007 and 1 November 2024, and you were mis-sold. You must have used the vehicle for personal use; therefore, this excludes company cars. Examples of mis-selling include unfair and excessive commission fees.
Meeting the above criteria does not automatically mean you are owed compensation, but it may indicate that your agreement should be reviewed. The next step is to assess whether your agreement was mis-sold, which you can do with our online checker. We will help identify if you are a victim of mis-selling and ensure you get the compensation you’re owed.
The timescale for a compensation claim depends on several factors, including when your agreement was taken out, whether you’ve already complained, and how quickly your lender responds. Under the redress scheme, the FCA confirmed the implementation period and payout timeframes. However, the scheme is now the subject of multiple legal challenges, and has been partially suspended by the Upper Tribunal. The case is expected to be heard on 14 to 18 December 2026 or 16 to 26 February 2027. Lenders can still prepare for the scheme, progress complaints as far as possible, and inform complainants who are not owed compensation, but payouts won’t arrive until 2027 at the earliest.
