Step-by-Step Guide

How PCP Car Finance Claims Work

From your initial eligibility check through to the outcome of your claim, here is a detailed breakdown of every stage of the process — so you know what to expect. Outcomes are decided case by case and are not guaranteed.

Why Might You Be Eligible to Claim?

Between 6 April 2007 and 1 November 2024, many UK car finance agreements involved commission paid by the lender to the dealer or broker that was not clearly disclosed to the customer. In some cases this was a Discretionary Commission Arrangement (DCA), where the dealer could influence your interest rate and earned more if it was higher; the FCA banned DCAs on 28 January 2021. The redress scheme also covers other undisclosed or high commission, not DCAs alone.

On 1 August 2025 the UK Supreme Court ruled that dealers were generally not acting as fiduciaries — narrowing the basis for some claims — but upheld one claim under the Consumer Credit Act’s “unfair relationship” test. Compensation now flows mainly through the FCA’s redress scheme, confirmed in Policy Statement PS26/3 (March 2026). The FCA estimates around 12.1 million agreements (about 37%) may be eligible, with an average of roughly £830 per eligible agreement — though amounts vary widely and some people receive nothing. The scheme is currently subject to a legal challenge that the FCA has said will delay payouts.

You can complain to your lender directly for free and do not need a claims management company. If you choose to use us, PCP Claim Finder (a trading name of Jigsaw Claims Ltd, authorised and regulated by the FCA, FRN 912323) manages the process on a no win, no fee basis. Eligibility and any compensation are decided case by case and are not guaranteed.

The Process

Your Claim Journey: Step by Step

Step 1

Free Eligibility Check

The process begins with our quick online eligibility form. You provide basic details about yourself and your car finance history — this typically takes less than 60 seconds. There is no obligation at this stage, and your information is handled securely in accordance with GDPR.

What we need from you: Your name, date of birth, and basic details about your car finance (approximate dates, lender name if known).

Takes approximately 60 seconds

Step 2

Agreement Identification

Once we have your details, our team works to identify your specific car finance agreements. We cross-reference your information with credit reference data and lender records to locate the exact finance deals you held. This ensures we capture every agreement that may be eligible for a claim.

What happens: We identify all relevant finance agreements linked to your name, including ones you may have forgotten about.

Typically 1 — 2 weeks

Step 3

Case Preparation

With your agreements identified, we build a comprehensive case. This involves documenting the commission arrangements that applied to your deal, calculating the potential overcharge, and preparing the formal complaint documentation in line with FCA requirements.

What we prepare: Formal complaint letter, evidence of commission arrangements, interest rate analysis, and regulatory references.

1 — 2 weeks

Step 4

Complaint Submission

We submit a formal complaint directly to your car finance provider. Under FCA regulations, the lender must acknowledge your complaint and provide a final response within 8 weeks. During this period, we maintain contact with the lender and chase progress on your behalf.

What to expect: You will receive confirmation that your complaint has been submitted, along with a reference number for your records.

Lender has 8 weeks to respond

Step 5

Resolution

When the lender responds to your complaint, one of two things happens. If the complaint is upheld, the lender will offer compensation — typically a refund of the excess interest you paid, plus statutory interest. If the complaint is rejected or you are unsatisfied with the offer, we can escalate your case to the Financial Ombudsman Service (FOS) for an independent, binding decision.

Outcome: Any compensation is paid to you. If your claim succeeds, our fee (banded, up to a maximum of 36% including VAT — see Fees) is deducted; if it does not succeed, you pay no fee.

Varies — FOS escalation can take several months

Timeline

What Timeline Should You Expect?

The total duration depends on several factors, including the responsiveness of your finance provider and whether the case is escalated. Note that the FCA redress scheme is currently delayed by a legal challenge, so timescales are uncertain. Here is a general guide for the complaint route:

Initial Assessment

1 — 3 business days after submission

Agreement Identification

1 — 2 weeks

Complaint to Lender

Up to 8 weeks for lender response

FOS Escalation (if needed)

3 — 12 months depending on complexity

Total (straightforward cases)

2 — 4 months

We keep you fully informed throughout, with regular updates at each milestone. You can also contact our team at any time to check the status of your claim.

Documents

What Documents Do You Need?

Essential (We Need This)

Your full name and date of birth
Current address and contact details
Approximate dates of your car finance agreement

Helpful (If You Have It)

Name of the finance provider (lender)
The dealership where you got the finance
Vehicle registration or make/model
Original finance agreement documents

Do Not Worry If...

You cannot remember the exact lender
You have lost your paperwork
The finance agreement has ended
The car has been sold or returned

We can usually locate your agreements using the details you do have — often just your name and approximate dates.

What Happens After You Submit Your Claim?

Once you complete our eligibility form, here is exactly what you can expect in the days and weeks that follow:

Within 24 hours: You will receive a confirmation email acknowledging your submission, along with details of your assigned claims handler.
Within 1 week: Our team will review your details and begin identifying your finance agreements. If we need additional information, we will contact you.
Within 2 — 3 weeks: Your formal complaint will be prepared and submitted to the relevant finance provider. You will be notified when this happens.
Ongoing: You will receive regular status updates via email. Our team monitors every case and will notify you as soon as we receive a response from your lender.

Throughout the entire process, you do not need to contact the lender yourself or deal with any paperwork. We handle everything — from the initial complaint through to final resolution and payment.

Regulation

The FCA Complaints Process Explained

All car finance complaints follow a regulated process overseen by the Financial Conduct Authority (FCA). Understanding this process can help you feel more confident about your claim:

Formal Complaint

A written complaint is submitted to the finance provider, detailing the grounds for the claim (typically hidden commission and unfair interest charges).

8-Week Response Window

The lender must provide a final response within 8 weeks. They will either uphold the complaint and offer compensation, or reject it with reasons.

Financial Ombudsman Service (FOS)

If the lender rejects your complaint or fails to respond within 8 weeks, the case can be referred to the FOS. The Ombudsman provides a free, independent, and legally binding resolution.

Current status

Following the 1 August 2025 Supreme Court ruling, the FCA confirmed an industry-wide redress scheme (PS26/3, March 2026). It is currently subject to a legal challenge that the FCA has said will delay payouts, so timescales are uncertain. You can complain to your lender directly for free at any time.