So What Is a PCP Claim?
A PCP claim is a complaint that your Personal Contract Purchase car finance was mis-sold because the dealer or broker was paid commission by the lender that you were not properly told about. Following a 1 August 2025 Supreme Court ruling, most claims are now expected to be handled through an industry-wide redress scheme run by the Financial Conduct Authority (FCA). You can complain for free yourself.
This guide explains what a PCP claim is in 2026, what the court actually decided, how the FCA scheme works, who might be eligible, and what it could be worth. Nothing here is guaranteed, and the figures are averages rather than a promise about your own case.
The 2025 Supreme Court ruling and the FCA redress scheme
This is the single most important thing to understand, because a lot of older information online is now out of date.
On 1 August 2025, the Supreme Court handed down its judgment in the joined cases of Hopcraft, Johnson and Wrench ([2025] UKSC 33). Contrary to how it was sometimes reported, the court mostly sided with the lenders. It held that car dealers are generally not acting as fiduciaries for their customers, and it dismissed the bribery and secret-commission ("fiduciary") arguments, overturning the more consumer-friendly Court of Appeal decision from October 2024. The court upheld only one, narrower claim — Johnson's — on the basis of an "unfair relationship" under section 140A of the Consumer Credit Act 1974.
In plain terms: the ruling did not create automatic, blanket payouts, and it did not confirm that all car finance was mis-sold. Instead, redress is being delivered through an FCA scheme.
On 30 March 2026, the FCA confirmed that scheme in Policy Statement PS26/3. Key points (FCA, 2026):
- 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, with rules split at 1 April 2014.
- It covers Discretionary Commission Arrangements (DCAs), other high-commission arrangements, and undisclosed ties between dealers and lenders — so 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 status (as of 8 June 2026): the scheme is under legal challenge, filed around 1 May 2026, with an Upper Tribunal hearing unlikely before October 2026. The FCA has said this will delay payouts. So while the framework exists, timescales are genuinely uncertain. Be wary of anyone promising money "now" or by a fixed deadline.
What Does PCP Actually Mean?
PCP stands for Personal Contract Purchase. It has been one of the most popular ways to finance a car in the UK.
With a PCP deal, you pay an initial deposit, followed by fixed monthly payments over an agreed term (usually 2–4 years). At the end of the agreement, you have three choices: hand the car back, pay a final "balloon payment" to own it outright, or use any equity as a deposit on a new deal.
On the surface, PCP sounds straightforward. The concern raised by the FCA is that many agreements were sold with commission arrangements that were not properly disclosed — and that is what most claims are about.
How Does Car Finance Mis-Selling Happen?
The issues the FCA has focused on include:
- Undisclosed commission — The dealer or broker received a payment from the lender for arranging your finance that was not properly disclosed to you.
- Discretionary Commission Arrangements (DCAs) — Until they were banned, these let the dealer earn more by setting a higher interest rate, giving them an incentive to put you on a costlier deal. The FCA banned DCAs on 28 January 2021, but the redress scheme reaches later agreements (up to 1 November 2024) and also covers non-DCA commission.
- Undisclosed ties — Arrangements between dealers and particular lenders that were not made clear.
You can read more about the warning signs in our guide on signs your car finance was mis-sold.
Who Can Make a PCP Claim?
Under the FCA scheme, your agreement may be eligible if (FCA, 2026):
- It was for a car, van, motorbike or campervan on HP or PCP.
- It was taken out between 6 April 2007 and 1 November 2024.
- Commission was paid to the dealer or broker that was not properly disclosed.
It does not matter whether the agreement is still active or has already ended, or whether you kept the car, handed it back, or part-exchanged it. Agreements that have been paid off or settled, and those belonging to customers who have since died, can still be eligible.
Some situations are not covered, including: Personal Contract Hire (PCH) leases, 0% finance deals, agreements with very small commission, the lowest-5% APR deals, and cases that have already been decided by the Financial Ombudsman Service (FOS) or a court.
Note: the old 28 January 2024 date you may have seen referred to a pause on complaint handling — it is not the eligibility cut-off. The eligibility window is 6 April 2007 to 1 November 2024.
If you are unsure whether you qualify, our eligibility checker can help, or you can check your claim directly.
How Much Could You Get Back?
There is no guaranteed or typical individual payout. The FCA's modelling in PS26/3 puts average redress at around £830 per agreement for those who qualify (£829, FCA, 2026) — but this is an average that varies widely. Around 1 in 3 eligible agreements are expected to be capped, and some people will receive nothing.
Across the industry, the FCA estimates total redress of around £7.5 billion (about £9.1 billion including administration costs).
| What the figures mean | Detail (FCA, 2026) |
|---|---|
| Average redress per agreement | ~£830 — an average, not a promise; varies widely |
| Capped agreements | ~1 in 3 expected to be capped |
| Possible outcome | Some eligible agreements may receive nothing |
| Eligible agreements | ~37% (~12.1 million) |
| Total industry redress | |
| Payment after you accept | Lender must pay within 1 month |
You can read more in our guide on how much you can claim for mis-sold car finance.
Is There a Time Limit?
Honest answer: the timetable is currently uncertain. The FCA scheme is the main route, but it is under legal challenge (filed around 1 May 2026), and the FCA has said this will delay payouts, with an Upper Tribunal hearing unlikely before October 2026.
Because of that, there are no reliable hard deadlines right now, and you should be sceptical of any service that pressures you with one. For background on the regulator's work, see our detailed article on the FCA car finance investigation.
How Does the Process Work?
The FCA scheme is designed so that, in many cases, lenders will review eligible agreements. Broadly:
- Check eligibility — Confirm your agreement falls within the scheme's criteria.
- The lender reviews — Your lender assesses whether commission was paid and not properly disclosed.
- An offer is made — If redress is due, the lender makes an offer.
- You decide — If you accept, the lender must pay within one month.
Remember that the scheme is under legal challenge, so timings may move. For a fuller breakdown, see our guide on how long a PCP claim takes.
Do I Need Documents?
Having your original finance agreement helps, but it is not essential — lenders hold records of the agreements they wrote. If you have lost your paperwork, basic details about the agreement can still be enough to get started. Our article on what documents you need covers this in full.
What Does It Cost?
You can complain directly to your lender, and use the FCA scheme, completely free — you do not need a claims management company. The free routes (your lender, then the Financial Ombudsman Service if you are unhappy) are open to everyone.
If you choose to use a claims management company or solicitor instead, they can charge a fee out of any money recovered. Under FCA rules, fees are banded by the amount recovered, up to a maximum of 36% including VAT (roughly 15%–30% plus VAT depending on the band). Our no win, no fee guide explains how that works so you can compare it against complaining yourself for nothing.
What Should You Do Next?
If you took out car or vehicle finance between 6 April 2007 and 1 November 2024, it may be worth checking whether your agreement falls within the FCA redress scheme. There are no guarantees — eligibility, outcomes and timings all depend on the facts of your agreement and on the legal challenge currently affecting the scheme.
You can always complain to your lender for free first. If you would like us to check your agreement for you, you can:
Start your free PCP claim check now — it takes less than two minutes to see whether your agreement may be in scope. You can also learn more about how our service works or get in touch with our team if you have questions.
This article is for general information only and is not legal or financial advice. Figures are FCA averages and estimates (FCA, 2026) that vary by case and are not guaranteed.
