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
No Win, No Fee
If you qualify for a claim, we'll work with you on a no-win, no-fee basis. This service means you only pay for our services if your PCP claim is successful; you won't pay a penny if it isn't.
The Claims Experts
Our consultants and admin team are specialists in consumer claims, so we're well-placed to support you and 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.
Around-the-Clock Support
We will review your application and prepare your case for submission to the lender. We will update you throughout the process and let you know if anything else is needed to reclaim.
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
Check NowNot Sure?
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.
Provide your details to us, and our experts will assess your claim.
Step 3.
We will submit your claim 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.
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 to consider us for your PCP claim...
We Understand Your Rights
As a UK citizen, you have fundamental consumer rights. Financial products must be explained to you with transparency and integrity. Motor finance agreements have been sold with exorbitant sales commissions. We understand how to enforce your right to financial parity 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. You only need to provide information about your agreements; we can take it from there. We will submit a legal claim directly to your provider while you wait for the results.
Check Your Eligibility for Free
Don't hesitate to check if you are eligible for a PCP claim. We provide a free online eligibility checker, ensuring you can see if your finance agreement was affected. Our free tool helps you know where you stand without upfront costs or obligations. Get peace of mind by finding out if we can assist you with our free and quick checker.
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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. It 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
The FCA launched an extensive investigation into commission practices due to an influx of rejected consumer complaints. During this period, the usual 8-week deadline for providers to respond to these complaints was suspended. The investigation aimed to determine whether these commission practices were detrimental to consumers.
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 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.
July 2024
FCA Delays Investigation Conclusion
The FCA pushed back the conclusion of its investigation and also confirmed that lenders would not be required to respond to complaints until 4 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. The Supreme Court heard the case in April 2025 and will deliver a final verdict in the coming months.
November 2024
The Scandal Could Cost the Industry £30BN
The credit ratings agency Moody's estimates that the the scandal could cost the industry as much as £30 billion in compensation. Since Lloyds became the first bank to put aside £450m for potential compensation, more lenders have followed suit. Santander has set aside £295m while MotoNovo Finance is preparing to potentially pay £209m to affected consumers. Close Brothers has taken several steps to raise £400m, including selling its wealth management unit. While the FCA's decision is still forthcoming, lenders are taking significant measures to ensure they're in a good place to pay compensation if needed.
December 2024
FCA Extends Deadline for All Commission Complaints
The Court of Appeal ruling surprised the entire industry with the judgement that consumers who took out a car finance agreement involving any commission, not just DCAs, may have been mis-sold if they weren't told about the commission or provided their informed consent. Due to this development, the FCA announced an extension to the deadline for providers to respond to complaints about car finance agreements involving a commission, bringing it in line with the DCA extension. Providers now don't have to respond until 4 December 2025, regardless of the type of commission that the complaint refers to. The FCA's next steps and whether to expand their investigation to focus on all commission-based agreements largely depends on the Supreme Court's case.
February 2025
Supreme Court Rejects Chancellor’s Intervention in Appeal Case
UK Chancellor Rachel Reeves had previously stated her concerns about the effect of significant compensation payouts on the motor finance industry, claiming it could cause “considerable economic harm” and make it harder for consumers to buy an affordable vehicle. Reeves had requested permission to intervene in the upcoming appeal. However, the Supreme Court rejected the intervention of the Treasury. The FCA and National Franchised Dealers Associated were granted permission to intervene with written and oral submissions.
February 2025
More Lenders Set Aside Money for Potential Compensation
With the landmark Supreme Court appeal case just around the corner, more lenders announced they’d set aside money for potential compensation payouts. Barclays has reserved £90m based on the “potential basis for and timing of redress.” Close Brothers has put aside £165m to cover potential costs following a “thorough assessment” of the case. Lloyds Banking Group, which operates the Black Horse lending provider, announced an additional £700m, bringing their provisions to £1.25bn. Another top lender, Santander, had previously set aside £295m. Bank of Ireland, which offers car finance via Northridge Finance, announced they've put aside €172m (£142m) to cover potential costs.
March 2025
FCA Provides Update on Next Steps and Potential Redress Scheme
In another hugely significant update, the FCA released a statement saying it will "likely consult on a redress scheme" should it find that customers have "lost out from widespread failings." The redress scheme would make firms responsible for determining if their customers have lost out and, if so, to offer appropriate compensation. The FCA noted that it wanted to provide as much certainty as possible, hence why it released a statement about the potential redress scheme. Another interesting point from the announcement is that the regulator is no longer planning to announce the next steps in May following the conclusion of its investigation. Instead, it will announce if they are implementing a redress scheme and how within 6 weeks of the Supreme Court's decision.
April 2025
UK Supreme Court Hears Appear in Landmark Case
Between April 1-3, the UK Supreme Court heard the appeal in the landmark commission ruling. The case involves Close Brothers and FirstRand, with the Court of Appeal declaring in October 2024 that it was unlawful for them to have paid any commission to dealers without the borrower being fully aware and providing their proper consent. Both sides presented their arguments during the three-day hearing, and several parties offered written and oral submissions, including the FCA. The Treasury had previously been denied permission to do so. Lord Reed, president of the Supreme Court, said that all sides had argued their case well and that the court would not rush a decision. He noted that the Court of Appeal took just under four months to make their judgement, and therefore, if they follow the same rate, they will "probably" announce their decision in July. The court must now determine whether or not to overturn the initial ruling, which will significantly impact whether more motorists might be able to reclaim undisclosed commission.
April 2025
Ford Sets Aside £61M to Cover Potential Costs
Ford Credit Europe (FCE) became the latest lender to set aside cash to cover the potential costs of the scandal. The company’s banking division, FCE Bank, announced it had put aside £61 million as an ‘estimated economic outflow’. The bank also said there is “significant uncertainty as to the extent of customer loss and the terms of any potential redress scheme.” Ford is one of several lenders that have announced provisions to cover compensation costs, with analysts predicting the scandal could cost the industry as much as £30 billion.
April 2025
Santander Considers Reshaping Car Finance Division
According to a Bloomberg report, Banco Santander SA, the Spanish owner of Santander, is considering shaping up its UK operations. Unnamed sources in the report say the company is now looking to split off its consumer finance division, including motor finance, from the rest of Santander UK. The bank has been reviewing its future in the UK over the last few months due to the impact of the car finance scandal, having previously set aside £295m to cover costs. The report says the company is ‘increasingly frustrated with the lagging performance of its UK business’ and is considering steps to improve its outlook. Santander has declined to comment on the report.
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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