PCP Claims
Start your Car Finance Claim
You could have been overcharged for your PCP & HP vehicle finance without even realising. Start your car finance claim now to see if you’re due a refund.
- Check your eligibility in just sixty seconds
- Specialist PCP and HP claims advice
- You could be owed compensation for mis-sold car finance
- Check your eligibility in just 60 seconds
- Specialist PCP and HP claims advice
- You could be owed compensation for mis-sold car finance
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What is a PCP Claim?
A PCP claim is a request for compensation when a personal contract purchase (PCP) or hire purchase (HP) car finance agreement has been mis-sold. Following the UK Supreme Court ruling in August 2025, most successful claims now focus on whether the agreement created an “unfair relationship” under Section 140A of the Consumer Credit Act 1974. This can happen if the lender or broker failed to explain key information, charged excessive or hidden commissions, or didn’t properly assess affordability.
The Financial Conduct Authority (FCA) has found widespread issues in the car finance market. Commission was paid on around 95% of UK car finance agreements, and as many as 40% may have involved unfair discretionary commission arrangements (DCAs). In these cases, the dealer could increase your interest rate to earn more commission, often without you knowing.
If your PCP or HP agreement was mis-sold, you may have overpaid. You can make a claim directly to your lender for free, or through a claims management company like PCP ClaimBack, who can assess your case, handle the paperwork, and guide you on next steps. If your lender rejects your complaint, you can escalate it to the Financial Ombudsman Service.
How much can I reclaim?
Most claims are expected to receive up to £829 per agreement — some may be worth more!
Subject to eligibility. Based on FCA estimates.
Refund Amount
£829
Number of Vehicles
3
PCP Refund amount
£2,487
Am I eligible for a refund?
Have you signed a PCP or HP agreement between 6th April 2007 and 1st November 2024? If you have, you could be eligible to make a car finance claim and receive compensation.
Up to 95% of car finance agreements had some form of commission model paid to the broker/dealer. Around 40% had hidden ‘discretionary commission arrangements (DCA’s)’.
There were two main types of commission:
- Discretionary Commission Arrangements (DCAs)
These were a type of car finance commission where the dealer could increase your interest rate to earn a higher commission for themselves. This practice, often hidden from the customer, was banned by the FCA in 2021 for being unfair. Many DCA claims focus on recovering the extra interest and costs you paid because of this arrangement. - Fixed Commission Arrangements (Non-DCAs)
These involved set payments, regardless of the interest rate, but may still be unfair in some cases.
If you signed one of these car finance agreements, you might have overpaid without knowing. With the Financial Conduct Authority (FCA) now investigating these arrangements, you could be due a refund.
You have nothing to lose from making a claim if you believe you’re eligible. You can’t be blacklisted or receive a different service if you make a complaint. So, if you took out a PCP car finance agreement before 28 January 2021, making a claim could get you a great result.
How you could have been mis-sold:
High interest
Elevated rates
Secret commissions
You were unaware of
Relationships
Weren’t disclosed
Commission amount
Unsure how much you paid
Affordability
No thorough checks
Felt pressured
To complete a purchase
You may be eligible if ...
Key Info
Did you buy a car on finance between 2007 and 2024?
Did you buy a car on PCP (Personal Contract Purchase) or HP (Hire Purchase) finance? If you did, you’re a good candidate for compensation. You may have been mis-sold this type of car financing, and you could claim money you’re due.
Did you pay a higher-than-average interest rate?
Discretionary commission arrangements involved charging higher interest so brokers could earn more commission. If your agreement had an above-average APR, you might have paid too much. The salesperson might have also failed to explain the interest rate and how it was calculated.
Did your lender carry out affordability checks?
Lenders should carry out affordability checks as part of responsible lending practices. This is to ensure you can repay what you borrow and they’re not putting you at financial risk. If they didn’t do this, that could mean they owe you money.
Did your lender or the car dealer disclose relationships?
Your lender and broker should have been up-front about their relationships with each other and how that affected how their finance agreements were structured. A lack of transparency could be grounds for a refund because you didn’t enter into the finance agreement with complete knowledge of what you were agreeing to.
Did your lender tell you about sales commissions?
The lender you used may not have told you about sales commissions, who was earning them, and how much they were. This poor transparency indicates that you didn’t have full knowledge of what you were purchasing and why you were being charged the amounts that were set.
Did your ender tell you about how much the sales commissions were?
In some cases, the lender might have told you about commissions. However, they could have failed to tell you just how much of the interest rate or fees you were being charged would go towards commissions.
Key facts about car finance claims
FAQ's
Frequently Asked Questions
How do I know if my PCP agreement was mis-sold?
There are several ways a car finance deal might have been mis-sold to you. These include:
- You weren’t told about the commission in your agreement
- You were told about the commission but not how much it was
- Your finance agreement had high interest rates
- The lender didn’t carry out strong enough affordability checks
- You weren’t told about relationships between lenders and brokers
Where do I find details of my car finance?
Our system integrates with leading credit reference agencies, enabling us to track all car finance agreements associated with you – even if you’ve changed your name or moved to a new address.
We also encourage you to check any documentation you may have from your finance agreement, It could be on paper or digital documents. Search your emails for the make and model of your car or your finance providers name, dealership of vehicle registration number. It may also show up on old bank statements.
Can I make a PCP claim for second-hand vehicles, multiple vehicles, or work vehicles?
You can still make a PCP claim if you bought your vehicle second-hand or if you want to make claims for more than one vehicle. However, your claim should be for a personal vehicle rather than one you use for business.
How long does it take to make a PCP claim?
The FCA initially paused motor finance complaints until 25 September 2024, but this has now been extended to 4 December 2025 while the regulator continues its investigation into discretionary commission arrangements. On 7 October 2025, the FCA also announced plans for an industry-wide redress scheme to compensate affected consumers, with payments expected to begin in 2026.
You can still submit a complaint to your finance provider, but they are not required to respond until after the new deadline unless the FCA announces any change to this. To find out more, visit: https://www.fca.org.uk/consumers/car-finance-complaints
Which companies sold finance with discretionary commission arrangements?
Hundreds of firms may have been selling PCP finance with discretionary commission arrangements. These include big names like Santander, Barclays, Mercedes Benz and BMW. There are also a number of firms that say they never used these arrangements, such as Admiral, Halifax, and Bank of Scotland.
Can you tell me more about PCP Claimback?
PCP-Claimback.co.uk is a trading name of Investor Compensation (UK) Ltd. We are a trusted claims management company based in Skipton, North Yorkshire, with over 18 years of experience helping customers recover money from financial mis-selling. We specialise in handling car finance claims, including those involving discretionary commission arrangements (DCAs). Although you can make your claim for free by contacting your lender and the Financial Ombudsman Service directly, many people prefer to use a claims management company to do the work for them. Our long-standing track record, transparent process, and dedicated customer support make us a reliable choice. With thousands of successful claims behind us, we offer a no-win, no-fee service – so you can pursue your claim with confidence and peace of mind.
*No Win, No Fee* If your claim is not successful, you won’t pay us a penny however, a success fee between 18% and 36% (including VAT) will be charged if your claim is successful. If you terminate the Agreement outside of the 14-day Cancellation period, You will be liable to pay Us our reasonable costs incurred in relation to Our Services at the rate of £75 per hour (including VAT).
What do I do if I’ve already used a third party to pursue my car finance claim?
Customers should be aware of the risks of instructing multiple representatives for the same motor finance claim.
If you already have an existing representative handling your claim, appointing another may lead to:
- Cancellation or administrative fees from your current representative
- Delays or complications in processing your claim
To avoid any issues, we strongly recommend that you:
- Check your terms and conditions before instructing another representative
- Confirm whether you already have an active representative handling the claim
Being aware of these risks will help you make informed decisions and ensure your claim is handled smoothly.
Can I have more than one company represent me for a mis‑sold car finance claim?
No – under FCA guidance, each consumer should only have one representative acting on a single car finance complaint at a time. Having multiple companies claim on your behalf can lead to delays, confusion, and unnecessary fees.
Resources
This guide will navigate the complexities of PCP and HP agreements, helping you understand your rights and what steps to take if you’ve been affected.
Entering into a Personal Contract Purchase (PCP) agreement is often a flexible and convenient way to finance a new car...
Personal Contract Purchase (PCP) and Hire Purchase (HP) are two prevalent car financing options, each tailored to different consumer needs. A PCP agreement...
Have you signed a PCP or HP agreement with Black Horse between 2007 and 2024? If so, you could be eligible to make a car finance claim and receive compensation.
Have you signed a PCP or HP agreement with Close Brothers between 2007 and 2024? If so, you could be eligible to make a car finance claim and receive compensation.
Have you signed a PCP or HP agreement with Motonovo between 2007 and 2024? If so, you could be eligible to make a car finance claim and receive compensation.
This guide will navigate the complexities of PCP and HP agreements, helping you understand your rights and what steps to take if you’ve been affected.
Entering into a Personal Contract Purchase (PCP) agreement is often a flexible and convenient way to finance a new car...
Personal Contract Purchase (PCP) and Hire Purchase (HP) are two prevalent car financing options, each tailored to different consumer needs. A PCP agreement...
Have you signed a PCP or HP agreement with Black Horse between 2007 and 2024? If so, you could be eligible to make a car finance claim and receive compensation.
Have you signed a PCP or HP agreement with Close Brothers between 2007 and 2024? If so, you could be eligible to make a car finance claim and receive compensation.
Have you signed a PCP or HP agreement with Motonovo between 2007 and 2024? If so, you could be eligible to make a car finance claim and receive compensation.
