Am I Eligible for a PCP Claim? Quick Checklist

Financed a car before 2021? Hidden commissions in car finance agreements may have led you to overpay unknowingly. If you took out PCP (Personal Contract Purchase) or HP (Hire Purchase) finance between 2007 and 2021, you could be entitled to claim back thousands in compensation.

PCP (Personal Contract Purchase) agreements have been widely mis-sold in the UK. If you took out a PCP finance deal, you might be owed compensation. Many lenders failed to explain commission structures, affordability checks, and unfair terms. Use this guide to check if you can claim and recover money from mis-sold car finance.

What is a Mis-Sold PCP Agreement?

A PCP deal is a car finance agreement where you pay monthly instalments with a balloon payment at the end. Many people were not told about hidden commissions or unfair terms. If your lender failed to disclose essential details, you may be eligible for compensation. The Financial Conduct Authority (FCA) is investigating these practices, and claims are already being processed.

Quick Checklist: Do You Qualify for a PCP Claim?

Did you take out a car finance agreement between 2007 and 2021?
Were you not told about commissions paid to the dealership?
Did you feel pressured into the deal without full financial details?
Was the interest rate higher than expected or changed without reason?
Did the lender fail to check if you could afford the repayments?
Were you advised that PCP was the only available option?

If you answered ‘yes’ to any of these questions, you might have been mis-sold a PCP deal. A PCP claim could help you recover unfair charges and get a payout.

How Were PCP Finance Deals Mis-Sold?

Many car buyers were unaware that dealerships received a commission based on the interest rate. Higher interest meant higher commissions, leading to unfair costs for buyers. Some lenders also failed to conduct proper affordability checks. As a result, many people paid more than necessary without understanding why.

Lenders and Manufacturers Involved in PCP Claims

Lenders that charged unfair commissions:

Car manufacturers with mis-sold PCP deals:

If your car finance agreement was with any of these lenders, you should check for mis-selling. Even if you are still paying off the agreement, you may be entitled to a refund.

How Much Compensation Could You Get?

Compensation depends on how much interest and commission were added to your finance agreement. Some claims result in refunds of hundreds or even thousands of pounds. The best way to estimate your potential refund is by using a Mis-sold Car Finance Payout Calculator. It’s free and takes just a few minutes.

Steps to Make a PCP Claim

Check your paperwork – Look at your car finance agreement for commission disclosures and interest rates.
Use the PCP claim calculator – Find out how much you might be owed in compensation.
Gather evidence – If possible, get copies of emails, letters, or documents proving mis-selling.
Submit your claim – You can claim directly with your lender or use a claims management company.
Wait for the response – Lenders must acknowledge claims and respond within eight weeks.
Escalate if necessary – If your claim is rejected, you can take it to the Financial Ombudsman Service (FOS).

Why Should You Act Now?

PCP claims are time-sensitive. The FCA is cracking down on unfair practices, and many claims are already in process. If you wait too long, you may lose your chance to recover unfair charges. Check if you qualify today and start your claim before deadlines expire.

Final Thoughts

Many people unknowingly paid thousands in unnecessary commissions. If you took out a PCP deal and were not given full financial details, you have the right to claim. Use the PCP Claims service to find out how much you could recover. It’s free, quick, and easy to start your claim today.

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