If you took out a Personal Contract Purchase (PCP) finance deal, you might be owed compensation. Many people were mis-sold car finance without proper explanations of costs and risks. The PCP Claims process helps drivers recover unfair charges.
A PCP claim allows you to seek compensation if a lender misled you about the finance terms. Dealers and lenders sometimes failed to disclose commission structures, increasing costs for borrowers. If you believe your agreement was unfair, you may be eligible for a refund.
Who Can Make a PCP Claim?
Anyone who took out a PCP finance deal in the last ten years might have a valid claim. If the lender did not properly explain interest rates or hidden commissions, you could be due compensation. Checking eligibility takes just minutes with the free Mis-sold Car Finance Payout Calculator.
Common Signs of Mis-Sold PCP Finance
Lenders should have clearly explained all fees and commissions before you signed the contract. If they failed to do so, you could be eligible for a refund. Here are the most common indicators of mis-selling:
- The dealer did not explain how interest rates were set or could change.
- You were unaware of the commission the dealer received from your finance agreement.
- The lender did not offer clear options for early settlement or balloon payments.
How Much Compensation Could You Receive?
Payouts vary depending on how much you overpaid due to hidden commissions. If your claim is successful, you could get back thousands in overpaid interest. Many people receive refunds of £3,000 to £10,000, depending on the finance deal.
How to Check If You Are Eligible
The quickest way to check is by using the PCP Claims Calculator. It takes just a few minutes and requires basic details about your car finance. If eligible, you can start your claim immediately without any upfront costs.
What Do You Need to Make a PCP Claim?
To submit a claim, you will need copies of your finance agreement and payment history. If you no longer have the documents, your lender must provide them on request. Once you have the paperwork, you can submit your case for review.
How Long Does a PCP Claim Take?
Most claims take between three to six months, depending on the lender’s response. Some cases settle quicker, while others require legal action if lenders refuse to pay. The good news is that you don’t need to go to court—legal teams handle disputes on your behalf.
Do You Need a Lawyer to Claim?
You don’t need a lawyer, but professional claims firms can increase your chances of success. They handle all paperwork, negotiations, and lender disputes. If you prefer to claim independently, you can complain directly to your lender and escalate to the Financial Ombudsman Service if needed.
Are There Any Upfront Fees?
Many claims firms operate on a no-win, no-fee basis, meaning you only pay if you receive compensation. Some charge a percentage of your payout, so check their terms before signing. Always use regulated claims firms to avoid scams.
What Happens If Your Claim Is Rejected?
If the lender rejects your claim, you can escalate the complaint to the Financial Ombudsman Service. The Ombudsman reviews disputes independently and can order refunds if they find wrongdoing. Even if the lender refuses, many rejected claims later succeed on appeal.
Why You Should Act Now
There may be time limits on claiming, so don’t delay if you think you were mis-sold. The longer you wait, the harder it may be to recover your money. Start your claim today using the Mis-sold Car Finance Payout Calculator to see if you qualify.
Final Thoughts
Millions of drivers may have mis-sold PCP finance without realising it. If your lender failed to disclose key details, you could claim thousands in compensation. Checking eligibility is quick, free, and could put money back in your pocket.
