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A PCP finance claim allows you to seek compensation if your PCP car finance agreement was mis-sold.
If you purchased a car, van, or motorbike on PCP or HP finance before January 2021, you may have been mis-sold. Many drivers were unknowingly charged higher interest rates, or had undisclosed commissions added to their agreements, costing them more than necessary.
Common reasons for PCP finance claims include:
- High-interest rates set by dealers to increase their commission.
- Undisclosed commissions that were not explained to you.
- Lack of affordability checks to ensure you could afford repayments.
If your agreement was mis-sold, you could be entitled to a car finance refund or compensation. Use our car finance checker to find out if you qualify.
To make a PCP car finance claim or other car finance claims, you must prove your agreement was mis-sold or breached regulations. Key criteria include:
- Misrepresentation of terms: Dealers misled you about costs, interest rates, or failed to explain the agreement.
- Undisclosed commission: A commission was paid to the dealer without your knowledge, affecting your deal.
- Lack of affordability checks: The lender failed to check if you could afford the repayments.
Use our car finance claim calculator or car finance checker to determine your eligibility.
You might have been mis-sold if:
- Interest rates were inflated to maximise dealer commissions.
- You weren’t told about the dealer’s commission incentive.
- Terms of your car finance agreement were unclear.
Check for car finance mis-selling using our car finance claims check tool.
Compensation depends on your loan amount, interest rate, and repayment period. Examples include:
- £5,492.10 with Black Horse
- £4,478.46 with MotoNovo
- £2,449.65 with Close Brothers
The mis-sold car finance average payout is around £1,600, but amounts vary.
You can claim for agreements dating back to 2007. Use our car finance agreement finder to locate eligible agreements for your car finance reclaim.
The car finance scandal exposed dealers who set high interest rates to earn bigger commissions, leading to widespread mis-sold car finance cases.
Martin Lewis’s car finance claim advice encourages checking for car finance mis-selling and taking action to recover car finance compensation if eligible. His guidance has helped many consumers navigate car finance claims in the UK.
The timeline depends on the lender. Some claims settle in a few months, while others may take over a year. Submit your claim as soon as possible.
Yes, if your agreement was mis-sold, you could be eligible for a car finance refund. Use our tool to check car finance claim eligibility.
For services on a No Win No Fee basis, you’ll typically pay 30% + VAT (36% including VAT) of the recovered amount. This fee is capped and will not exceed this rate. A cancellation fee may apply if you cancel outside the cooling-off period.
Claims are highly successful if eligibility criteria are met. Many consumers have received car finance refunds and compensation.
Compensation varies based on interest rates, loan amounts, and repayment periods. The mis-sold car finance average payout is £1,600, but some claims exceed £5,000.
The number of car finance claims is rising as more consumers discover they were mis-sold agreements. PCP car finance claims are among the most common cases.
DCA stands for Discretionary Commission Arrangement. This means dealers or brokers had the discretion to set interest rates, often leading to higher rates to increase their commission. This practice has been linked to widespread car finance mis-selling.
If your agreement was affected by a DCA car finance scheme, you may be eligible to file a car finance claim for compensation. Use our car finance checker to find out if you qualify.
You can use our car finance checker to review your agreement and determine your eligibility.