Financed a car before 2021? You might have mis-sold a finance agreement without realising. Many car buyers who used PCP (Personal Contract Purchase) finance or HP (Hire Purchase) between 2007 and 2021 were unknowingly overcharged due to hidden commissions.
If you took out finance during this period, you could be entitled to a refund. The Financial Conduct Authority (FCA) is investigating car finance deals, focusing on unfair discretionary commission arrangements. If a dealer received commission based on increasing your interest rate, you may be owed compensation.
What is PCP Early Termination?
PCP early termination allows you to end your car finance agreement before the contract’s full term. This option is covered under Voluntary Termination (VT) in the Consumer Credit Act 1974. If you’ve repaid at least 50% of the total finance amount, including interest and fees, you can return the car without owing anything further.
Many customers who terminated early found themselves charged additional fees. Some were misled into thinking early termination wasn’t possible or were forced into paying unfair penalties. If this happened to you, you could make a PCP claim for compensation.
How Do Hidden Commissions Affect Your PCP Finance?
Before January 2021, car dealers and brokers could set your interest rate to increase their commission. This discretionary commission structure meant higher payments for you and more earnings for the dealer. The FCA banned this practice in 2021, but millions of consumers were already affected.
If your finance agreement included a hidden commission, you were likely overcharged. Many agreements failed to disclose how much commission the dealer earned from your finance deal. If you were not informed, you might be eligible for a PCP claim to recover overpaid interest and fees.
Latest FCA Update on PCP and HP Claims
The FCA has extended the pause on motor finance complaints until 4 December 2025. This means lenders have more time to respond to claims related to discretionary commissions. If you believe your agreement included an unfair commission, you should submit a PCP claim now rather than wait.
You don’t need to pay upfront legal fees to claim. A Mis-sold Car Finance Payout Calculator can estimate how much compensation you may receive. Click PCP Claims to check if you qualify.
Do You Qualify for a PCP Compensation Claim?
You may be eligible for compensation if:
- You took out PCP or HP finance between 2007 and 2021.
- Your finance agreement included hidden or undisclosed commissions.
- Your car dealer or broker set the interest rate without your knowledge.
- You paid a higher interest rate than expected due to commission incentives.
- You faced excessive charges for early termination or were misled about your rights.
If any of the above apply to you, submit a claim today. It only takes a few minutes, and you could recover thousands in overpaid interest and fees.
How Much Compensation Could You Get?
Compensation amounts depend on how much extra you paid due to hidden commissions. On average, successful claims result in refunds between £1,000 and £10,000. Your claim could include:
- A refund of overpaid interest.
- A return of hidden commission fees.
- Compensation for financial losses caused by mis-selling.
To get an estimate, use the Mis-sold Car Finance Payout Calculator on PCP Claims.
Steps to Make a PCP Claim
- Check your agreement – Find your finance paperwork and review the interest rates and fees.
- Use the free claim checker – Enter your details on PCP Claims to see if you qualify.
- Submit your claim – Provide details about your finance agreement and how you were mis-sold.
- Wait for the lender’s response – With the FCA extension, final responses may take longer, but claims remain valid.
- Receive your compensation – If successful, you’ll receive a refund for overpaid interest and fees.
Why You Should Act Now
With the FCA extending complaint response deadlines, many lenders will delay payments. However, claims are still being processed, and acting now ensures your place in the queue. Waiting could mean delays in receiving your compensation.
Filing a claim is free and does not affect your credit score. Use the PCP Claims service to check your eligibility. You could recover a significant amount if your finance agreement included unfair commission charges.
Conclusion
If you used PCP or HP finance to buy a car before 2021, you might be owed money. Hidden commissions meant millions of drivers unknowingly overpaid. Making a claim is free, straightforward, and could lead to a refund of thousands.
Don’t wait—use the PCP Claims service today and check if you qualify.
