Did you purchase a car using PCP or HP finance between 2007 and 2020? You might be entitled to compensation due to hidden dealer commissions and undisclosed fees. Whether you're still making payments or have already settled your agreement, understanding how to make a PCP finance claim could lead to compensation.

Are You Owed Compensation for Car Finance?

Did you purchase a car using PCP or HP finance between 2007 and 2020? You might be entitled to compensation due to hidden dealer commissions and undisclosed fees.

Whether you're still making payments or have already settled your agreement, understanding how to make a PCP finance claim could lead to compensation.

What Exactly Is a PCP Claim?

A PCP claim is a request for compensation from a finance provider when your PCP car finance agreement was mis-sold. This typically happens when dealers failed to disclose their commission arrangements

The Financial Conduct Authority (FCA) has identified widespread issues in the car finance industry, affecting many UK consumers. If your finance was mis-sold, you could be entitled to refunds of overpaid interest, hidden commissions, and in some cases, additional compensation.

Types of Mis-sold PCP Agreements

• DCA (Discretionary Commission Arrangements): These arrangements enabled brokers or dealers to modify the interest rate within a predefined range set by the lender. The higher the interest rate selected, the greater the commission they received. Typically, customers were unaware this arrangement existed.
• UDC (Undisclosed Commission Arrangements): This term describes any type of commission—fixed or variable—paid to a broker or dealer that was not transparently disclosed to the customer.

An eligibility assessment is the first step toward potential compensation. This process is typically straightforward and can be completed relatively quickly.

Why Professional Help May Benefit Your PCP Claim

Here's why choosing specialist services could be beneficial:

• Specialised Expertise: Their team has extensive experience specifically with financial claims

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  No Upfront Fee: You start your claim for free

• Comprehensive Service: They handle the claim, no need to deal directly with the finance companies

• Time-Efficient: They save you time by assisting with the claim

Doing It Yourself: The Basic Steps for Self-Filing

If you prefer the DIY approach, here's what you'll need to do:

1. Gather all documentation including your agreement, payment records, and communications
2. Write a formal complaint letter that articulates the technical reasons for mis-selling
3. Submit your complaint to the finance provider's customer service department
4. Wait up to 8 weeks for the company to investigate your claim. The response time of 8 weeks is currently paused by the FCA and the companies do not have to respond until 4th December 2025 (normally the company will need to provide a final response within 8 weeks).
5. Escalate to the Financial Ombudsman Service if necessary

This approach is possible but can prove time-consuming and complex

Time Considerations for Making Your Claim

If you believe you have grounds for compensation, taking action promptly may be beneficial. If you entered into a car finance agreement between 2007 and 2020, you may be eligible to make a claim. The sooner you start your claim, the sooner you might receive compensation if successful.

Frequently Asked Questions About PCP Claims

Can I make a claim if I've already paid off my finance?

Yes, you can still make a claim even if you've completely paid off your finance agreement, provided you're within the applicable time limits.

Will making a PCP claim affect my credit score?

No, making a PCP claim should not negatively impact your credit score. The claim process is separate from credit reporting systems, and exercising your consumer rights cannot legally be used against you in credit assessments.

How much does it cost to use a claims service?

Most specialist services operate on a contingency basis. This means there are typically no upfront costs to start your claim. They only charge a fee if they successfully secure compensation for you, usually taken as a percentage of the amount recovered.

What happens if my finance company rejects my claim?

If your finance provider rejects your claim or offers an unsatisfactory settlement, you can escalate your case to the Financial Ombudsman Service. Specialist services can handle this entire process on your behalf.

Take Action Today

Making a PCP claim could potentially result in compensation for mis-sold car finance. While some choose to pursue claims independently

Check your eligibility and take the first step toward potentially claiming what you may be owed. With contingency-based services, there's typically no upfront financial risk, and you could join many UK motorists who have already received compensation.

This content has been developed in collaboration with My Car Loan Claims trading as Alawco Limited, SRA authorised and regulated, with their supervision ensuring factual accuracy.

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