If you purchased a car through PCP or HP finance between 2007 and 2020, you might be eligible for compensation. This guide explains how to check your eligibility and understand the claims process.
What is a PCP Claim?
A PCP claim is a request for compensation when a PCP car finance agreement was potentially mis-sold. This might occur when dealers did not disclose their commission arrangements.
The Financial Conduct Authority (FCA) has identified widespread issues in the car finance industry affecting many UK consumers. If you’ve been affected by these practices, you may be entitled to claim compensation, though success depends on individual circumstances.
Types of Mis-sold PCP Agreements
- DCA (Discretionary Commission Arrangements): These arrangements enabled brokers or dealers to modify the interest rate within a predefined range set by the lender. The higher the interest rate selected, the greater the commission they received. Typically, customers were unaware this arrangement existed.
- UDC (Undisclosed Commission Arrangements): This term describes any type of commission—fixed or variable—paid to a broker or dealer that was not transparently disclosed to the customer.
Even if you’ve already paid off your finance, you may still be able to make a claim, subject to time limits. An eligibility assessment is the first step toward understanding your potential entitlement, taking just 2 minutes to complete.
The Simple 3-Step Process to Make Your PCP Claim
Making a car finance claim involves a straightforward process:
- Check Your Eligibility – Use a quick online tool to verify if you might qualify (takes just 2 minutes)
- Submit Your Claim Details – Provide basic information about your finance agreement
- Let Experts Handle Everything – Professional teams can manage all paperwork and negotiations
This process aims to help you pursue potential compensation, though outcomes cannot be guaranteed.
How Much Compensation Could You Potentially Receive?
Understanding potential compensation amounts helps you decide whether pursuing a claim might be worthwhile. Car finance claims could result in compensation varying widely, with amounts typically ranging from hundreds to thousands of pounds, depending on the finance value and specific circumstances.
Important Time Limits for Making Your Claim
It’s important not to delay if you believe you may have grounds to claim compensation. If you entered into a car finance agreement between 2007 and 2020, you might be eligible. The sooner you start investigating your claim, the better positioned you may be.
The DIY Approach vs. Expert Help
If you prefer to pursue your claim independently, here’s what you’ll need to do:
- Gather all documentation including your original agreement and payment records
- Write a detailed formal complaint to your finance provider
- Wait up to 8 weeks The response time of 8 weeks is currently paused by the FCA and the companies do not have to respond until 4th December 2025 (normally the company will need to provide a final response within 8 weeks).
- Possibly escalate to the Financial Ombudsman Service if unsatisfied
While this DIY approach is possible, many find the process time-consuming and complex.
Why mycarloanclaims.co.uk May Be Worth Considering for PCP Claims
Specialist services offer several potential advantages:
- Focused Expertise – Teams work exclusively on car finance claims
- Track Record – Experience helping customers pursue compensation
- Transparent Process – Keeping clients informed at every stage
- Comprehensive Service – Handle calculations and negotiations
- Reduced Stress – All paperwork and negotiations managed for you
Frequently Asked Questions About PCP Claims
Can I make a PCP claim if I’ve already paid off my finance?
Yes, you may still be able to make a claim even if you’ve completely paid off your finance agreement, provided you’re within the relevant time limits.
Will making a PCP claim affect my credit score?
No, making a PCP claim should not negatively impact your credit score. The claim process is separate from credit reporting systems.
How much does it cost to use a claims service?
Many specialist services operate on a conditional fee basis. There are typically no upfront costs to start your claim assessment. They only charge a fee if they successfully secure compensation for you.
What happens if my finance company rejects my claim?
If your finance provider rejects your claim or offers an unsatisfactory settlement, you can escalate your case to the Financial Ombudsman Service, and specialist services can handle this process on your behalf.
Take Action Today
Checking your eligibility takes just 2 minutes and could help you understand if you might be entitled to compensation. Whether you choose to claim independently or with expert help, understanding your rights is the first step toward potentially receiving what you may be owed.
Remember, many services offer risk-free assessments, making it straightforward to check if you might qualify for a PCP claim.
This content has been developed in collaboration with My Car Loan Claims trading as Alawco Limited, SRA authorised and regulated, with their supervision ensuring factual accuracy.