Pcp Claims

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PCP & Vehicle Finance Claims

Around 90% of customers purchase vehicles such as cars, vans, motorbikes and motorhomes using finance. Finance allows the buyer to spread the cost of a large purchase into more manageable monthly payments over an agreed term.

PCP Claims

If you purchased a vehicle on a PCP or Hire Purchase finance before the 28th of January 2021, you may be eligible to make a claim for compensation. This is down to the finance providers who enabled brokers and car dealers to add on hidden ‘discretionary commission arrangements’ which increased their commission and resulted in customers having to pay more without them knowing. It is estimated that it happened on around 40% of car finance deals during 2007 & 2021 and that customers were overcharged around £1,100.00 on a £10,000 PCP finance deal.

No win No fee

Our panel solicitors can handle your case on a no win, no fee basis which means there’s nothing to pay upfront and nothing to pay if your case is unsuccessful.

If your case is successful, our panel solicitors take between 25% – 50% + VAT from your awarded compensation. This varies amongst our panel members and will be dependent on the law firm we recommend you to as well as your claim type and individual circumstances. Fees will always be agreed with your solicitor’s firm upfront.

Please note that financial claim fees are capped at a maximum of 30% + VAT, however the fees may be as little as 15% + VAT and will be dependent on the redress awarded for your claim.

Full terms & conditions will be included in your solicitor’s agreement so please read this carefully and speak to them if you are unsure of anything before signing. For more information, please visit our No win No fee page.

We receive marketing fees from our panel solicitors for successful introductions. You are under no obligation to use our panel solicitors.

The Regulator

In January 2021, the Financial Conduct Authority (“FCA”) banned discretionary commission arrangements.

On 11 January 2024, the FCA announced a review into whether motor finance customers have been overcharged because of the past use of discretionary commission arrangements (DCA’s). They initially paused the 8-week deadline for providers to respond to complaints about car finance that involved this type of commission, meaning consumers can still complain to their provider, however the provider will not be required to respond to their complaint until after 25 September 2024.

On 30 July 2024, the FCA then released this statement:

‘Update: 30 July 2024

We’re investigating whether some car finance customers were charged too much on their loans. If you’re owed compensation, we want to make sure you get it in the best way possible.

We’re now planning to announce the findings of our investigation and next steps in May 2025. This will give us the time needed to assess whether we should allow firms to handle complaints in the usual way or introduce a different approach.

While we’re investigating, we’re also proposing to further extend the deadline that providers (lenders or brokers) have to respond to certain car finance complaints from 26 September 2024 at the earliest, to after 4 December 2025.’

This means if your finance was subject to a DCA, the lender does not have to respond until after the 4 December 2025, however if your agreement was not subject to a DCA, they will still need to respond within the 8-week period.

More information on this can be found on the FCA’s website: Car finance complaints | FCA.

Please note: You do not need to use a claims management company to make a claim for compensation. You can use a solicitor or company of your own choice or alternatively you can make a claim yourself for free via the person/entity you wish to claim from or via the relevant ombudsman service. Links to their websites can be found below.

Can I Make a Claim?

It can be difficult to know whether you have been mis-sold vehicle finance as the commissions were hidden and customers were unaware of the agreement, however the law suggests that the burden of proof is on the lender or dealership to show they acted legally and fairly.

You may be entitled to make a claim if:

  • You were not advised by the broker of car salesperson that they would receive a commission from the lender for setting up the finance.
  • You were not informed of all finance options available to yourself. This includes the differences and responsibilities of each finance product type.
  • You were not given a competitive deal (high Interest rates).
  • You received high pressure sales or were rushed into making a decision.
  • The appropriate affordability checks were not considered or discussed with yourself.
  • The full terms and conditions of the finance agreement were not adequately explained.

I’ve had lots of cars on finance, can I claim for all of them?

You can claim for multiple vehicles simultaneously, so long as the vehicles were purchased using mis-sold finance agreements between 2007 & the 27th of January 2021. If the vehicles were purchased using finance which was not mis-sold, in other words no hidden commissions or unfair charges or any of the issues highlighted above, then there’s no negligence so you won’t be entitled to claim compensation. It’s not difficult to find out though! You can make a claim yourself for free by writing a complaint to the lender or dealership you used to purchase the vehicle. You can find a template online.

Alternatively, you can contact us, and we can see if one of our panel solicitors assist you. They would do this on a No Win No fee basis which means there’s nothing to pay upfront and nothing to pay if your case is lost. They would take a percentage from your awarded compensation on settlement. Full terms and conditions will be included in your agreement with the panel member. Any Panel member we recommend is an independent professional from whom you will receive impartial and confidential advice and services from.

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