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. Many drivers were misled about their agreements and paid more than necessary due to secretive commission structures.
What Is PCP Finance, and Why Are People Complaining?
PCP finance is a popular way to buy a car with lower monthly payments and a final balloon payment. However, many lenders failed to disclose that car dealers and brokers were earning commissions based on increasing interest rates. This meant customers were unfairly charged higher rates, leading to excessive costs over time.
The Financial Conduct Authority (FCA) has been investigating these practices and confirmed widespread issues with discretionary commission arrangements. Many finance agreements included hidden costs, which drivers were unaware of when signing their contracts. If you were mis-sold, you could be owed a refund covering interest, fees, and additional costs.
Who Can Make a PCP Claim?
If you took out PCP or HP finance between 2007 and 2021, you may be eligible to claim compensation. The key factors in a mis-sold car finance claim include undisclosed commissions, unfairly high interest rates, and misleading sales tactics. If the lender did not clearly explain how interest rates were set, you may have grounds for a complaint.
To check your eligibility, use the free PCP Claims calculator to estimate your potential payout. Many drivers are unaware they were overcharged and could receive thousands in compensation. The sooner you act, the better your chances of recovering money owed to you.
How to Start a PCP Finance Complaint
- Gather Your Finance Documents – Find your original finance agreement, including the interest rate and total repayments. If you no longer have a copy, contact your lender to request one.
- Check for Hidden Commissions – Look for any mention of commissions or how your interest rate was determined. If this was not explained to you clearly, you may have been mis-sold.
- Submit a Complaint to Your Lender – Write a formal complaint to your finance provider, explaining why you believe you were mis-sold. Include details about hidden commissions and the impact on your payments.
- Wait for a Response – Lenders must respond within eight weeks, but due to the FCA’s investigation, many cases are taking longer to resolve.
- Take Your Case to the Financial Ombudsman – If your lender rejects your claim or delays beyond the allowed time, escalate your complaint to the Financial Ombudsman Service (FOS). They can independently review your case and make a legally binding decision.
FCA Investigation and Deadline Extension
The Financial Conduct Authority (FCA) is reviewing how lenders handled complaints about hidden commissions. Due to the scale of claims, the deadline for lenders to respond has been extended until 4 December 2025. This means lenders have more time to assess cases before providing a final response.
While this extension may delay payouts, it ensures proper investigation of claims. If you believe you were mis-sold car finance, do not wait until the deadline. Start your claim now to secure your place in the queue for compensation.
What Compensation Could You Receive?
Successful claimants could receive thousands in compensation, depending on the overpaid interest and charges. Refunds may include:
- Reimbursement of overpaid interest on the finance agreement
- Compensation for hidden commissions earned by the dealer
- Refund of additional fees linked to unfairly increased rates
Using the free PCP Claims calculator, you can estimate how much you could be owed. Even if your car finance agreement ended, you might still be eligible to claim.
Common Myths About PCP Finance Claims
- “I paid off my car, so I can’t claim” – Even if you have finished payments, you can still claim if you were mis-sold.
- “The agreement was legal, so I won’t win” – Many agreements were technically legal but lacked proper transparency.
- “Claiming is expensive” – Many claim services work on a no-win, no-fee basis, meaning you only pay if you win.
Why You Should Act Now
The FCA’s investigation means claims are taking longer to process, but this does not mean you should delay. Starting your claim now gives you the best chance of securing compensation before deadlines approach. Lenders have already set aside millions for payouts, and acting early ensures your claim is reviewed sooner.
Many drivers have successfully reclaimed their money by challenging unfair finance agreements. Don’t miss the opportunity to check if you are owed a refund. Use the PCP Claims tool today to begin your claim for free.
