Millions of UK drivers financed cars through Personal Contract Purchase (PCP) or Hire Purchase (HP) without knowing about hidden commission fees. Lenders and brokers often arranged car finance deals where they earned undisclosed commissions, inflating interest rates without your knowledge. If you settled your finance, you might still be eligible to reclaim unfair charges.
Who Can Claim a PCP Refund?
If you took out PCP or HP finance between 2007 and 2021, you could be entitled to a refund. Many agreements included discretionary commission arrangements, allowing brokers to increase interest rates for higher commissions. This unfair practice means you may have overpaid, even if you settled your loan early.
Use this Mis-sold Car Finance Payout Calculator to check if you qualify for a claim.
Settled Your Finance? You Could Still Be Owed Money
Settling your finances early does not affect your right to claim a refund. The issue lies in how the deal was structured rather than whether you completed payments. If your lender or broker added hidden commissions, they still owe you compensation, even if you no longer have the car.
What Is the FCA Saying About PCP Claims?
The Financial Conduct Authority (FCA) has extended the complaint-handling pause for motor finance firms until 4 December 2025. This gives regulators more time to investigate unfair lending practices and ensure compensation reaches affected customers. Read the FCA Update for more details.
How Much Compensation Can You Claim?
Refund amounts vary depending on the interest overpaid due to hidden commissions. Some claimants have recovered thousands in refunds, including compensation for excessive interest rates. The best way to estimate your potential refund is to use the free PCP Claims calculator on the official website.
How to Start Your PCP Refund Claim?
- Check Your Eligibility – If you financed a car before 2021, you might have overpaid due to hidden commissions.
- Gather Your Documents – Find your finance agreement, settlement letter, and any correspondence with the lender.
- Submit Your Claim – Use PCP Claims to start your claim for free.
- Await Review – The FCA is currently reviewing cases, and refunds may take time due to the complaint-handling pause.
Common Myths About PCP Refunds
- “I settled my finances, so I can’t claim.” – Wrong! If your agreement had hidden commissions, you still have a case.
- “The lender already compensated me with a lower interest rate.” – That doesn’t mean they didn’t overcharge in the first place.
- “It’s too late to claim.” – Claims are still being processed, and the FCA’s investigation is ongoing.
Final Thoughts
If you financed a car between 2007 and 2021, you might have overpaid due to unfair commissions. Whether you still have the car or settled your finances early, you could be eligible for compensation.
Check if you qualify today using the Mis-sold Car Finance Payout Calculator and claim back what’s rightfully yours!
