If you’ve ever financed a car through a Personal Contract Purchase (PCP) deal, you might be entitled to compensation. Many drivers in the UK have been mis-sold PCP finance agreements due to hidden commissions and unclear terms. This article will break down which PCP lenders you can claim against, how much compensation you might receive, and how to start your claim. Let’s dive in.
What Is PCP Finance and Why Are Claims Happening?
PCP finance is a popular way to buy a car in the UK. You pay a deposit, followed by monthly payments, and at the end of the term, you can either pay a final “balloon payment” to own the car, return it, or trade it for a new one. However, many lenders didn’t disclose that they were earning large commissions on these deals, which increased the cost for buyers. This lack of transparency has led to a wave of compensation claims.
The Financial Conduct Authority (FCA) banned commission-based car finance deals in 2021 after finding that they often led to unfair costs for consumers. Now, drivers are claiming back what they’re owed.
If you financed a car through any of these lenders before 2021, you could be eligible for compensation. The FCA is investigating the car finance industry, and more lenders may be added to this list as the investigation unfolds.
Which Lenders Can I Make A PCP Claim Against?
We have PCP claims in progress against a large number of lenders, including:
- Black Horse Ltd
- Blue Motor Finance Ltd
- BMW Financial Services (GB) Ltd
- CA Auto Finance UK Ltd
- Close Brothers Ltd
- Clydesdale Financial Services Ltd
- FCE Bank PLC
- FirstRand Bank Ltd (London Branch)
- Hyundai Capital UK Ltd
- Mercedes-Benz Financial Services UK Ltd
- Moneybarn No. 1 Ltd
- NIIB Group Ltd
- PSA Finance UK Ltd
- RCI Financial Services Ltd
- Santander Consumer (UK) PLC
- Startline Motor Finance Ltd
- Toyota Financial Services (UK) PLC
- Vauxhall Finance PLC
- Volkswagen Financial Services (UK) Ltd
** If your lender isn’t listed, don’t worry—we can still assist with your mis-sold vehicle finance claim.
Mis-sold Vehicle Finance Claims Checker
Our mis-sold car finance claims calculator below estimates the level of compensation you may be able to reclaim for a mis-sold car finance agreement.
Add the value of your vehicle, the length of your agreement, and the interest rate you paid to the calculator below. Then, compare this against a rate that you may have been offered if you weren’t mis-sold.
Disclaimer : The Mis-sold Car Finance Claims calculation is illustrative, and under no circumstances should it be used or relied upon in the pursuit of a claim. If you need more help and clear understanding Contact National Claims.
How Much Compensation Can You Claim?
The amount of compensation you can claim depends on your PCP agreement and how much extra you paid due to hidden commissions. On average, successful claims have resulted in payouts of £1,000 to £5,000 per person. However, some drivers have received as much as £10,000, especially if their deal involved a high-value car or a long-term agreement.
For example, if your lender added a hidden commission that increased your interest rate by 2%, you could be owed thousands over the life of your agreement. Additionally, you might be entitled to interest on the compensation, typically calculated at 8% per year.
How to Check If You’re Eligible for a Claim
First, check if you had a PCP finance deal before January 2021, when the FCA banned commission-based agreements. Next, look for signs of mis-selling, such as:
- You weren’t told about the commission the lender earned.
- The terms of your agreement weren’t clearly explained.
- You felt pressured into taking the finance deal.
If any of these apply, you might have a valid claim. According to a 2023 FCA report, over 1 million drivers could be eligible for compensation due to car finance mis-selling.
How to Start Your Claim
Starting a claim is easier than you think. First, gather any paperwork related to your PCP agreement, such as your contract or payment statements. Then, contact the lender directly to request details about your agreement, including any commissions they earned.
However, navigating the claims process can be tricky. That’s where National Claims can help. National Claims will put you in touch with experienced solicitors who will guide you through your claim. They’ll handle the legal side of things, ensuring you get the compensation you deserve. With their expertise, you can focus on what matters—getting your money back.
Why Act Now?
The FCA is expected to announce a formal redress scheme for car finance mis-selling in 2025. News outlets like the BBC have reported on this issue, noting that billions of pounds could be paid out to affected drivers. For instance, a BBC article from early 2024 highlighted that the FCA is investigating over 40 car finance firms for unfair practices.
But there’s a catch: there may be a time limit to make your claim. If you wait too long, you could miss out. So, don’t delay—check your eligibility and start your claim today.
What Happens After You File a Claim?
Once you file a claim, your solicitor will investigate your case. They’ll look at your PCP agreement to see if you were overcharged due to hidden commissions. If the lender agrees to pay compensation, you’ll receive a payout. If they refuse, your solicitor may take the case to the Financial Ombudsman Service, which handles disputes between consumers and financial firms.
The process can take a few months, but with National Claims on your side, you’ll have expert support every step of the way.
Frequently Asked Questions About PCP Finance Claims
Q1. What is PCP finance mis-selling?
PCP finance mis-selling happens when lenders don’t disclose commissions or fail to explain the terms of your agreement, leading to higher costs for you.
Q2. How do I know if I’m eligible?
If you had a PCP deal before 2021 and weren’t told about commissions, you might be eligible. Check your paperwork or contact your lender.
Q3. How long does a claim take?
It can take 3 to 6 months, depending on the lender’s response and whether the case goes to the Financial Ombudsman.
Q4. Will it cost me to make a claim?
Many solicitors, like those National Claims works with, operate on a no-win, no-fee basis. You only pay if you win your case.
Q5. Can I claim if I’ve already paid off my PCP deal?
Yes, you can still claim for past agreements, as long as they were active before the FCA’s 2021 ban.
Why Choose National Claims?
National Claims makes the process simple. They connect you with experienced solicitors who specialise in car finance claims. With their help, you’ll have the best chance of securing compensation. Plus, they’ll handle all the paperwork and negotiations, so you don’t have to.
Final Thoughts
If you’ve been mis-sold a PCP finance deal, you could be owed thousands in compensation. Lenders like Volkswagen Finance and others have been implicated in this scandal, and now is the time to act. Check your eligibility, calculate your potential payout, and get in touch with National Claims to start your claim. Don’t miss out on what you’re owed—take action today.
Contact National Claims today, and we will put you in touch with an expert solicitor who can guide you through the claims process.📞 Call us now free 0800 029 3849 or 📩 Submit an online enquiry to speak to our team. Your safety and well-being matter, and we’re here to help.
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