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.
Claiming mis-sold car finance is straightforward, but you need the right paperwork. Missing documents can slow your claim or even lead to rejection. Here’s a detailed breakdown of what you need and how to get started.
1. Car Finance Agreement
Your car finance agreement is the most important document. It outlines the terms of your contract, including interest rates, lender details, and any commissions. Check if you still have a copy from your finance provider or car dealer. If not, you can request one from the lender directly.
Why You Need It: This document proves you had a finance agreement. It shows whether undisclosed commissions were added. Without it, proving a mis-sold deal becomes difficult.
2. Loan Statements or Repayment Records
Loan statements or direct debit records confirm your payments. These records help calculate the amount you overpaid due to hidden commissions. Bank statements showing monthly payments to the lender are also useful. If your payments increased unexpectedly, this can be evidence of unfair charges.
Where to Get It: You can request statements from your lender or check your online banking records. Some banks provide transaction history for up to six years.
3. Car Purchase Invoice or Receipt
Your invoice proves the vehicle’s purchase price and any upfront payments. It also shows details of any additional fees charged by the dealership. A high upfront payment may indicate that the dealership included hidden costs.
Why It Matters: If a dealer added unfair charges, this document can support your claim. It helps in identifying discrepancies in pricing and finance costs.
4. Correspondence with the Lender or Dealer
Emails or letters between you and the lender or dealership can be crucial. Any communication about your finance deal, payment terms, or concerns raised about extra charges strengthens your case.
Key Details to Look For: If a dealer told you your finance deal was “the best option” or failed to disclose commissions, written proof can support your claim. Misleading statements from salespeople also help establish that you were misled.
5. Credit Agreement Breakdown
A breakdown of your loan agreement shows how much you borrowed, the interest rate, and total repayments. This document often includes information about fees and commissions. Hidden charges are usually buried in the fine print.
Why You Need It: Some lenders disguise commissions as administrative fees. Identifying these charges strengthens your claim.
6. Credit Report Showing the Loan
Your credit report confirms the existence of the finance agreement. It shows when the loan started, the amount borrowed, and whether it’s been settled. If you no longer have the paperwork, this can help track down details.
How to Get It: You can check your credit report for free from services like Experian, Equifax, or TransUnion. If the finance agreement appears on your report, the lender must provide details upon request.
7. Bank Statements Showing Monthly Payments
Bank statements provide a clear record of how much you paid and when. If your lender denies overcharging, these statements offer solid proof of your payments.
Where to Get It: Most online banking services allow you to download statements for the past five years. If you need older statements, request them from your bank.
8. Any Additional Fees or Charges
If you paid early settlement fees, balloon payments, or extra charges, keep those records. Some lenders applied unfair charges when customers tried to settle early.
Why It Matters: If you were charged excessive fees, it strengthens your mis-selling claim. Check for any unexplained costs that increased your overall repayment amount.
How to Make a PCP Claim
Once you gather the required documents, you can begin your claim. A financial claims specialist can assist, or you can claim directly through your lender. The process usually involves the following steps:
- Check Your Finance Agreement – Look for hidden commissions and unfair charges.
- Gather Supporting Documents – Collect your loan agreement, statements, and invoices.
- Submit a Formal Complaint – Contact your lender and request a refund for unfair charges.
- Escalate to the Financial Ombudsman – If the lender rejects your claim, escalate it for a final decision.
Get a Free PCP Claims Assessment
Not sure if you’re eligible? Use our free PCP Claims calculator to check if you qualify for compensation. It takes just a few minutes, and there are no upfront costs.
Many drivers were misled into paying more than they should have. If you financed a car between 2007 and 2021, hidden commissions could mean you overpaid by thousands. Don’t let lenders keep what’s rightfully yours – start your claim today!
