Am I Eligible for a PCP Claim?
You may be eligible if you took out car, van, motorbike or campervan finance (PCP or hire purchase) between 6 April 2007 and 1 November 2024 and the dealer or broker was paid commission you were not properly told about. The FCA estimates around 37% of agreements (roughly 12.1 million) fall within its redress scheme (FCA, PS26/3, 2026). Eligibility is not guaranteed.
You can complain to your lender directly, for free, and you do not need a claims management company to do it.
The 2025 Supreme Court ruling and the FCA redress scheme
The picture changed materially in 2025 and 2026, so older advice you may have read is now out of date.
The Supreme Court ruling (1 August 2025). In Hopcraft, Johnson and Wrench ([2025] UKSC 33), the Supreme Court mostly sided with the lenders. It held that car dealers are generally not fiduciaries of their customers, and it dismissed the bribery and secret-commission/fiduciary claims, overturning the more consumer-friendly Court of Appeal decision of October 2024. It upheld only Mr Johnson's narrower "unfair relationship" claim under section 140A of the Consumer Credit Act 1974. In plain terms: there are no automatic, blanket payouts, and the ruling did not confirm that all car finance was mis-sold. Redress instead flows through the FCA scheme below.
The FCA redress scheme (confirmed 30 March 2026). Following the ruling, the FCA confirmed an industry-wide redress scheme in Policy Statement PS26/3 (FCA, 2026). Key points:
- It is industry-wide and free to take part in.
- It covers car, van, motorbike and campervan hire purchase (HP) and PCP agreements taken out between 6 April 2007 and 1 November 2024 where commission was paid (the scheme is split at 1 April 2014 for how cases are assessed).
- It covers discretionary commission arrangements (DCAs), certain high-commission arrangements, and undisclosed ties between broker and lender — it is not DCA-only.
- The FCA estimates around 37% of agreements are eligible (roughly 12.1 million agreements).
- Once you accept an offer, the lender must pay you within one month.
Important — the scheme is under legal challenge. A legal challenge to the scheme was filed around 1 May 2026, and an Upper Tribunal hearing is unlikely before October 2026. The FCA has said this will delay payouts, and timescales are uncertain. Treat any "claim now before the deadline" messaging with caution — there is no hard consumer deadline being enforced while the timetable is disrupted.
What people typically receive. The FCA's modelling puts average redress at around £830 per agreement (£829 in PS26/3) for those who qualify, with total redress to consumers of roughly £7.5bn (about £9.1bn including firms' costs). This figure is an FCA average per agreement that varies widely — around 1 in 3 cases are capped and some people receive nothing. It is not a guaranteed or typical individual payout.
Eligibility scenarios at a glance
Use the table below as a quick guide. It reflects the FCA scheme as set out in PS26/3 (FCA, 2026). Your own outcome depends on the facts of your agreement and is not guaranteed.
| Scenario | Eligible? | What to do |
|---|---|---|
| Discretionary commission arrangement (DCA), where the dealer could set your rate | Likely in scope | Complain to your lender for free, quoting your agreement details |
| High commission paid to the broker/dealer and not properly disclosed | Potentially in scope | Ask your lender what commission was paid and how it was disclosed |
| Undisclosed tie between broker and a single lender | Potentially in scope | Raise it with your lender; the scheme covers undisclosed ties |
| Finance paid off or settled in full | Eligible if within the window | Settled and even deceased customers' agreements can be assessed |
| Car sold, returned, part-exchanged or repossessed | Eligible if within the window | Outcome depends on the finance, not what happened to the car |
| Personal contract hire (PCH) / a lease, not HP or PCP | Not eligible | PCH leases are excluded from the scheme |
| 0% finance, very small commission, or a lowest-5% APR deal | Not eligible | These are excluded; check whether you had a different agreement |
Cases already decided by the Financial Ombudsman Service (FOS) or a court are also outside the scheme.
The eligibility window: 6 April 2007 to 1 November 2024
The scheme covers qualifying agreements taken out from 6 April 2007 to 1 November 2024. Note that the older "28 January 2024" date you may have seen referred to the FCA's temporary pause on complaint handling, not an eligibility cut-off — do not rely on it.
For context, the FCA banned discretionary commission arrangements on 28 January 2021. That ban is still correct, but the redress scheme reaches further: it runs to 1 November 2024 and also covers non-DCA commission that was not properly disclosed.
If you are unsure which type of agreement you had, our PCP vs HP claims guide explains the differences.
What types of finance and vehicles are covered?
The scheme covers PCP and hire purchase agreements on cars, vans, motorbikes and campervans where commission was paid. It does not cover PCH leases or 0% deals. Whether the car was new or used does not affect eligibility — the finance arrangement is what matters, not the vehicle.
If you have had several PCP or HP agreements over the years, each one is assessed separately, so it is worth checking each agreement within the window.
Common misconceptions, corrected
"My agreement has ended, so I cannot be assessed"
Not so. Paid-off and settled agreements are eligible if they fall within the 6 April 2007 to 1 November 2024 window. Agreements belonging to deceased customers can also be assessed.
"I handed the car back, so I am out"
What happened to the car — kept, returned, part-exchanged, voluntarily terminated or repossessed — does not by itself decide eligibility. The assessment focuses on the finance and any commission.
"I do not have the paperwork"
Having your finance agreement helps, but lenders hold the records and you can ask them directly. See our guide on what documents you need.
"Checking will affect my credit score"
Complaining about how finance was sold does not appear on your credit file. (This is separate from any question of whether your claim succeeds.)
How to check your eligibility — and your free options
You have two routes, and the first is free:
- Complain directly to your lender for free. You do not need a claims management company. If you are unhappy with the response, you can escalate to the Financial Ombudsman Service, also free.
- Use a claims firm. This is optional. If you use one, fees are banded by the amount recovered and capped at a maximum of 36% including VAT (15%–30% plus VAT), in line with FCA rules.
If you would like us to assess your agreement, use our free claim checker. It takes under two minutes and there is no charge to check. You will need:
- Your name and contact details
- The approximate date of the agreement
- The dealership name (if you remember it)
- The finance company (if you know it)
- The vehicle make and model
Before you decide
A few things to keep in mind:
- You can claim for free, directly to your lender and then the Financial Ombudsman Service if needed — a claims firm is never required.
- Eligibility and outcomes are not guaranteed. The ~£830 figure is an FCA average per agreement that varies widely; some agreements receive nothing.
- Timescales are uncertain. The redress scheme is under legal challenge, and the FCA has said payouts are likely to be delayed; be wary of false-deadline pressure.
- If you use a claims firm, you keep more by checking the fee, which can be up to 36% including VAT of anything recovered.
Ready to check?
If you took out car finance through a dealer or broker between 6 April 2007 and 1 November 2024, it is worth checking whether your agreement falls within the FCA scheme — without overstating your chances.
Check your eligibility now — checking is free and there is no obligation. If you would rather talk it through first, our team is available via our contact page, and you can read about how the claims process works so you know what to expect.
