What is a PCP car finance claim?

A PCP car finance claim is a compensation claim against finance providers who mis-sold car finance agreements. Many dealerships received hidden commissions from lenders for arranging finance, which often resulted in customers paying higher interest rates without their knowledge. If you were affected, you may be entitled to a refund of the excess interest paid.

How much compensation can I expect?

The average claim is around £700 per finance agreement, though this can vary significantly depending on the size of your agreement and the level of hidden commission. Some claims have resulted in payouts of several thousand pounds. The FCA expects over £8 billion to be paid out across the industry.

How long does the claims process take?

Most claims are resolved within 3 to 6 months, depending on the lender's response time. Some straightforward cases may be resolved sooner. We'll keep you updated on progress throughout the process.

What does No Win, No Fee mean?

It means you won't pay anything if your claim is unsuccessful. Our fees range from 15% to 30% (plus VAT) of your compensation, depending on the amount recovered. There are no upfront costs, administration charges, or hidden fees.

Am I eligible to make a claim?

You may be eligible if you took out PCP or HP car finance between April 2007 and November 2024 and were not made aware of commission arrangements between the dealer and the finance provider. Even if you've already paid off your finance, you can still claim.

What information do I need to make a claim?

You just need your basic personal details — name, address, date of birth, and contact information. You don't need your original finance documents. Our system can search for your agreements using your details through credit reference agencies.

Can I claim if I have already paid off my finance?

Yes, absolutely. Whether your finance is still active or was paid off years ago, you can still make a claim. Many successful claims relate to finance agreements that ended several years ago.

What happens after I submit my claim?

After you submit, our team reviews your details and searches for eligible finance agreements. If agreements are found, we submit a formal complaint to the lender on your behalf. The lender then investigates and responds, typically within 8 weeks. If the claim is upheld, you receive your compensation minus our fee.

Am I Eligible for a PCP Claim? Check Your Eligibility

PCP Claim Finder Team8 April 20266 min read

Quick Eligibility Check

Before we go into the details, here is a rapid checklist. You are likely eligible for a PCP claim if:

You took out car finance (PCP, HP, or conditional sale) in the UK
The finance was arranged through a car dealer, broker, or intermediary
You were not clearly told about the commission the dealer received from the lender
Your agreement started within the last six years (though older claims may still qualify)

If you can tick most of those boxes, there is a good chance you have a valid claim. Let us break down each criterion so you can be sure.

Criterion 1: Type of Finance Agreement

PCP claims are not limited to PCP agreements alone. You may be eligible if you had any of the following types of car finance:

Personal Contract Purchase (PCP) — The most common type. You pay monthly and have a balloon payment at the end.
Hire Purchase (HP) — Fixed monthly payments with ownership at the end of the term.
Conditional Sale — Similar to HP, where you own the vehicle once all payments are made.

The key factor is that the finance was arranged through a third party (the dealer or broker), not that you went directly to a bank or building society for a personal loan.

If you are unsure about the difference between agreement types, our PCP vs HP claims guide explains them in detail.

Criterion 2: How the Finance Was Arranged

This is the crucial one. Your claim is based on how the finance was sold to you, not the finance product itself.

You are eligible if:

A car dealer arranged your finance as part of the vehicle purchase
A car finance broker set up the agreement on your behalf
Any intermediary between you and the lender was involved in the transaction

You are not eligible if:

You arranged a personal loan directly with your bank to buy a car
You used savings or cash to purchase the vehicle
You arranged the finance entirely yourself, without a dealer or broker acting as an intermediary

The reason is straightforward: the mis-selling relates to commission paid to the intermediary. If there was no intermediary, there was no hidden commission.

Criterion 3: Undisclosed Commission

The heart of most PCP claims is that the dealer received a commission from the lender for arranging your finance, and this was either:

Not disclosed at all — You were never told the dealer was being paid
Not adequately disclosed — It was mentioned vaguely in the small print but the amount or nature of the payment was not clear
Linked to your interest rate — Under a Discretionary Commission Arrangement (DCA), the dealer could increase your rate and earn more commission as a result

You do not need to prove the commission existed yourself. Our investigation will establish the commission arrangements that were in place. If you were not clearly told, that is enough.

Criterion 4: Time Limits

Time limits for PCP claims work as follows:

Six-year rule — Generally, you have six years from the date of the agreement to bring a claim
Three-year awareness rule — Alternatively, you have three years from the date you became aware (or reasonably should have become aware) that you had grounds to complain

Given the widespread media coverage of the PCP claims issue, the awareness window is relevant. The FCA's public announcements and the extensive press coverage mean that many consumers are now considered to be aware, so acting promptly is advisable.

What If My Agreement Is Older Than Six Years?

There are circumstances where older claims can still succeed:

If you only recently became aware of the hidden commission issue
If the lender engaged in deliberate concealment
If there are other factors that extend the limitation period

It is worth checking even if you think you might be outside the time limit. We can assess your individual situation at no cost.

Common Misconceptions

"I cannot claim because my agreement has ended"

Wrong. It does not matter whether your agreement is active, settled, or finished. The claim relates to how the finance was sold, not whether you are still paying.

"I cannot claim because I handed the car back"

Wrong. Whether you kept the car, handed it back, part-exchanged it, or voluntarily terminated the agreement has no bearing on your eligibility.

"I cannot claim because I do not have the paperwork"

Wrong. While having your original finance agreement helps, it is not essential. We can work with the lender to obtain the necessary information. See our guide on what documents you need.

"I cannot claim because I was happy with the car"

Wrong. The claim has nothing to do with the quality of the vehicle. You may have loved the car and been perfectly happy with the purchase. The issue is solely about how the finance was sold and whether commission was properly disclosed.

"I cannot claim because I could afford the payments"

Wrong. Affordability and mis-selling are separate issues. Even if you had no trouble making your payments, you may still have been overcharged due to hidden commission.

"Claiming will affect my credit score"

Not true. Submitting a complaint about mis-sold finance does not appear on your credit file and has no impact on your credit rating.

What Types of Vehicles Are Covered?

Eligibility is not limited by vehicle type. You can claim for:

New cars
Used cars
Vans (if purchased on personal finance)
Motorbikes (if financed through a dealer)

The vehicle itself is not the issue — the finance arrangement is.

What If I Have Had Multiple Cars on Finance?

If you have taken out several PCP or HP agreements over the years, each one is a separate potential claim. Many of our clients successfully claim on two, three, or more agreements.

Each agreement is assessed independently, so even if one does not qualify, others might. This is particularly relevant for people who regularly change their vehicle every two to three years.

How to Confirm Your Eligibility

The quickest way to find out for certain is to use our free claim checker. You will need:

Your name and contact details
The approximate date of the agreement
The name of the dealership (if you remember it)
The finance company (if you know it)
The vehicle make and model

The whole process takes under two minutes. There is no charge, no obligation, and no impact on your credit file.

Ready to Check?

Millions of UK drivers are eligible for PCP compensation and do not yet know it. If you bought a car on finance through a dealer at any point in the last several years, the odds are in your favour.

Check your eligibility now — it is free, fast, and completely risk-free. If you prefer to talk through your situation first, our team is available via our contact page. You can also read about how the claims process works so you know exactly what to expect.