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.
What Are PCP Claims?
PCP claims arise when lenders and car dealerships fail to disclose commission payments on car finance agreements. Many people unknowingly paid higher interest rates due to these hidden fees. If you took out a PCP agreement and weren’t informed about commissions, you might be owed a refund.
Am I Eligible to File a PCP Claim?
To qualify for a claim, you must have taken out a PCP or HP finance agreement between 2007 and 2021. Your lender should have disclosed any commission arrangements clearly at the time of agreement. If they failed to do so, you may be entitled to a refund of the excess interest you paid.
How Much Could I Claim Back?
The exact amount varies depending on how much extra you were charged due to undisclosed commissions. Many claimants receive refunds worth thousands of pounds. Use the free-of-cost Mis-sold Car Finance Payout Calculator to estimate how much you could recover.
What Is the Latest FCA Update on PCP Claims?
The Financial Conduct Authority (FCA) has confirmed an extension to the deadline for motor finance firms to provide a final response to complaints regarding discretionary commission arrangements. This means that motor finance providers now have until 4 December 2025 to process customer complaints. If you haven’t yet filed your claim, now is the time to act. Read FCA Update.
How Do I File a PCP Claim?
Filing a claim is straightforward, and you don’t need a solicitor. You can file a complaint directly with your lender, stating that the commission was undisclosed and that you were overcharged on interest payments. If the lender refuses or delays, you can escalate the complaint to the Financial Ombudsman Service.
What Happens If My Lender Rejects My Claim?
If your lender rejects your claim or doesn’t respond within eight weeks, you can take your complaint to the Financial Ombudsman Service. They will review your case independently and decide whether you are entitled to a refund. Many rejected claims have been overturned in favour of the consumer.
Do I Need to Pay to File a PCP Claim?
No, you don’t need to pay upfront to file a PCP claim. You can make a claim yourself at no cost. Some claims management companies offer to handle the process for a fee, but you can save money by doing it yourself.
How Long Does a PCP Claim Take?
Processing times vary, but most claims take between three to six months. If the case goes to the Financial Ombudsman Service, it may take longer. The FCA’s extension to the complaint handling pause means that responses could take until 2025 in some cases.
What Evidence Do I Need to Make a Claim?
You will need a copy of your finance agreement and evidence that commissions were not disclosed. If you no longer have your paperwork, you can request a copy from your lender. A credit report can also show the details of your car finance agreement.
Should I File a PCP Claim Now or Wait?
It is best to file your claim as soon as possible. Although the FCA has extended deadlines, waiting too long might reduce your chances of receiving compensation. Submitting your claim now ensures you are in the queue for review before any further changes in regulation.
What Should I Do If My Car Finance Agreement Was Mis-Sold?
If you believe your car finance agreement was mis-sold, act now. Use the Mis-sold Car Finance Payout Calculator to see how much you could be owed. Then, submit your claim directly to your lender or escalate it if needed. Don’t wait until the deadline approaches.
By taking action today, you can potentially recover thousands of pounds that were wrongly added to your car finance payments. Check your eligibility and make your claim now before the deadline closes.
