PCP Claims – Start Your Car Finance Claim Today
If you took out a PCP or HP car finance agreement before 2021, you may be entitled to compensation due to hidden Discretionary Commission Arrangements (DCA). Start your claim today in just minutes.
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PCP Finance Claims - explained clearly
What a PCP claim is, how undisclosed Discretionary Commission Arrangements (DCAs) pushed up APRs, and how car finance claims challenge unfair costs.
What is a PCP Claim?
A PCP claim asks a lender to put right a car finance deal where the cost was pushed up by undisclosed, interest-linked commission. It's about getting compensation for deals where hidden fees made you pay more than you should have.
Discretionary Commission Arrangements
Before January 2021, many lenders let dealers/brokers set your APR higher and earn more for doing so. This was called a Discretionary Commission Arrangement (DCA), and the FCA banned it in 2021 because it was unfair to customers.
Supreme Court Decision
On 1 August 2025, the UK Supreme Court confirmed customers can still win where the overall deal was unfair under section 140A of the Consumer Credit Act 1974. The Court looks at what you were told, how your rate was set, and the effect on what you paid.
FCA Response & Scale
The FCA will consult on an industry-wide redress scheme. The scale is massive: 25.9 million motor-finance agreements between 2007-2021, with 14.6 million using DCAs and about £8.1 billion of commission paid.
In short: A PCP claim is about whether an undisclosed commission influenced your interest rate and made you pay more than you should have. If the relationship was unfair, you could be entitled to refunds of extra interest/charges. No outcome is guaranteed.
Am I Eligible for a PCP Claim?
If you purchased a car, van, or motorcycle on finance between 2007 and January 2021, you may be eligible for compensation due to mis-sold PCP or HP finance agreements. Following the August 2025 Supreme Court ruling and the FCA's announcement to consult on an industry-wide redress scheme, millions of motorists could be owed refunds for unfair hidden commissions and excessive interest rates.
You Could Be Eligible If:
You bought a vehicle on PCP or HP finance between 2007 and January 2021
This timeframe covers the period during which widespread mis-selling occurred in the car finance industry. The Financial Conduct Authority (FCA) began handling motor finance complaints from April 2007 and banned discretionary commission arrangements in January 2021.
The lender did not tell you about sales commissions
Your finance provider had a legal obligation to disclose if they were paying commission to the dealer or broker. If this information was hidden from you, it creates an unfair relationship under Section 140A of the Consumer Credit Act 1974.
The lender mentioned commissions but didn't explain how much or how they worked
Even if commission was mentioned, you may still have a claim if you weren't told the amount or that the dealer could set your interest rate higher to earn more commission (known as a Discretionary Commission Arrangement).
You paid a high interest rate
If your annual purchase rate was above 4.9% (the average APR for car finance), you may have been charged an inflated rate. The FCA found that consumers paid on average £1,100 more in interest due to these arrangements.
The lender wasn't thorough with affordability checks
Lenders are required by FCA guidelines to ensure you can afford the loan payments. If proper affordability checks weren't conducted and you struggled to meet payments, you may have a valid claim.
The dealer/broker didn't disclose their relationship with the lender
Dealers should have informed you about any commercial relationships with lenders, including potential conflicts of interest.
What Types of Agreements Are Covered?
Claims can be made for:
- Both new and used vehicles purchased through finance
- Active agreements where you're still making payments
- Agreements that have ended and been fully paid off
- Multiple vehicles (you can claim for each eligible agreement)
- Vehicles that were repossessed
- All types of vehicles: cars, vans, trucks, and motorcycles
The FCA estimates that 95% of car finance agreements included some form of commission model, with approximately 40% featuring the now-banned discretionary commission arrangements. With compensation averaging around £950 per agreement (according to FCA estimates), checking your eligibility could lead to a significant refund.
What is my PCP Claim worth?
The mis-sold car finance average payout is estimated at £950 per agreement according to FCA figures. However, several factors can influence the final compensation amount you might receive.
Factors Affecting Your Claim Value
Important: Multiple Finance Agreements = Higher Compensation
If you had multiple finance agreements between 2007 and 2021, your potential compensation could be significantly higher. For example, with 3 eligible agreements, you could potentially receive around £2,850 (£950 x 3).
Why Choose Total Claim?
When choosing a claims management company for your PCP claim, you need a partner you can trust. Here's why over 15,000 customers have chosen Total Claim for their car finance claims:
Our Simple 3-Step Claim Process
From initial check to final compensation - we handle everything so you don't have to. No upfront costs, no hassle, just results.
Step 1: Quick 2-Minute Check
Complete our simple form with your basic details and answer just 3 questions about your claim. After accepting our terms, we'll run a soft credit search that won't affect your credit score.
- Takes just 2 minutes to complete
- No paperwork needed at this stage
- We run a soft credit search to locate all your past agreements
Step 2: We Handle Everything
Once you submit the claims we find, our expert team takes over completely. We'll handle all communication with lenders on your behalf.
- We identify all your finance agreements from the past 12 years
- Our specialists communicate directly with each lender
- No need for you to gather paperwork or contact lenders yourself
Step 3: Secure Your Compensation
We negotiate with lenders to secure the maximum compensation possible. Most claims are settled without court action, but we're prepared to take legal steps if needed.
- Average claim value around £950 per agreement (based on FCA estimates)
- You receive updates throughout the process
- No upfront fees - we only get paid when you win
Who Can I Claim Against?
Claim against 50+ UK car finance lenders. Select from the list or browse the full directory. Two-minute check, no impact on your credit score.
Ready to Check Your Claim?
With over 14.6 million agreements potentially affected by hidden commission, you could be entitled to compensation. Find out in minutes.
Check Claim NowNo outcome is guaranteed. You can also complain directly to your lender or use the Financial Ombudsman Service for free.
How long does the PCP claim process take?
The timeline for PCP claims is currently affected by the FCA's extension of the deadline for motor finance firms to respond to complaints until December 4, 2025. While we can submit your claim now, lenders aren't required to respond until after this date. We'll keep you updated on any developments throughout the process.
Can I still make a claim if I no longer have the vehicle or paperwork?
Yes, you can still make a claim even if you no longer own the vehicle or have the original paperwork. Our system can help identify historical agreements through our partnerships with credit reference agencies, even if you've changed address or name.
Will making a claim affect my credit score?
No, making a PCP claim will not negatively impact your credit score. The claim relates to how the agreement was sold to you, not your payment history. Our initial eligibility check uses a "soft search" that doesn't leave a footprint on your credit file.
Can I claim for multiple vehicles?
Yes, you can claim for each eligible finance agreement you've had. If you've purchased multiple vehicles on finance between 2007 and January 2021, you may be entitled to compensation for each agreement where hidden commissions were present.
Do I need to use a claims company or can I claim myself?
You have the right to make a claim directly to your lender for free or use the Financial Ombudsman Service. However, many people choose to use our services because we handle all the complexities, documentation, and negotiations on your behalf, maximizing your chances of success.
What if my lender has gone out of business?
If your lender is no longer trading, you may still be able to make a claim against the dealer or broker who arranged your agreement. Our team can advise on the best approach based on your specific circumstances.
How much compensation could I receive?
The FCA estimates that the average compensation amount is around £950 per agreement, though this can vary significantly depending on factors such as the vehicle value, interest rate paid, and length of agreement. Some claims may be worth considerably more.
What happens after I check my eligibility?
If our initial check indicates you're likely eligible, we'll contact you to gather additional information and formally start your claim. We'll handle all communication with the lenders and keep you updated throughout the process.