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 at the end of the check, ensuring you have an answer in minutes without needing to speak to a member of our team.

If you want to proceed with a claim or determine how much you may receive, you can fill out a no-obligation form with your contact details. We will then contact you to discuss your claim further.

Our experts will explain the process and what documents are required, such as a copy of your loan agreement. We will contact your lenders 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 you were not told about commission payments when taking out your loan. Dealers must fully explain your financial agreement, including fees, payments, and terms and conditions before you sign it.

By being mis-sold finance, you will have unfairly paid more for the vehicle than you should have due to inflated interest rates. The claim will help you recover the fees lost due to undisclosed commissions.

Several factors influence whether someone can make a claim or not. First of all, to make a compensation claim with PCP Claim UK, you need to have bought the car on a finance agreement. Claims can be made on both PCP and Hire Purchase agreements. The vehicle must be your own, not a company car. Secondly, you must be a UK resident and have bought the car between April 2007 – 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 gather vital documents and identify whether there is sufficient evidence that you are a victim of mis-selling. Examples of mis-selling include paying a high interest rate or not being told about sales commissions.

The length of a compensation claim for mis-sold car finance can vary from case to case. The early stages of a claim involve gathering essential documents to identify if you have been mis-sold on your loan agreement. Therefore, it can speed up the process by having these documents available. Otherwise, you may have to request them from your lender.

It can help to have an expert managing your claim from the very beginning. One of the first critical steps of a mis-sold finance claim is to discuss the situation with the dealership or finance company. If they accept responsibility, reaching an agreement and concluding the claim can take just a few months.

In January 2024, the FCA announced an investigation into the misselling of car finance. While they investigate, they have paused the deadline for firms to respond to customer complaints. The investigation has now been extended from September 2024 to May 2025, when the FCA is expected to announce their findings. The deadline for lenders to respond to complaints has been extended from 26 September 2024 to 4 December 2025.

When the FCA announces the findings of their investigation, there is a good chance they will launch a redress scheme outlining how compensation will be distributed. Speaking to Martin Lewis from Money Saving Expert, the FCA has said a redress scheme is now ‘more likely’ but not yet confirmed. Until then, it remains uncertain how long it will take to complete your PCP claim.