PCP Claims & Compensation
Were you mis-sold a PCP car finance agreement? Many dealers hid secret commission payments, failed to disclose high interest rates, added unnecessary extras, or pushed unsuitable finance deals without checking affordability. Thousands of drivers are now entitled to reclaim thousands of pounds in compensation. Our specialist team helps customers across the UK claim back every penny from PCP mis-selling – No Win, No Fee.
- No Win, No Fee
- £45M+
- 92% Success Rate
Understanding PCP Finance
Personal Contract Purchase (PCP) is a popular car finance option, but many customers were mis-sold these agreements with hidden costs and unfair terms.
How PCP Works
The PCP Structure
PCP agreements typically involve:
- An initial deposit (usually 10-20% of car value)
- Monthly payments over 2-4 years
- A large final “balloon” payment (GMFV)
- Option to return the car or pay the balloon payment
- Three options at the end of the agreement:
- Pay the balloon payment
- Return the car (subject to excess mileage/condition fees)
- Use any equity as deposit for a new PCP agreement
End of Agreement Options
Return the car
Hand back the vehicle and walk away (subject to condition/mileage
Pay the balloon payment
Make the final payment and own the car outright
Part-exchange
Use any equity as a deposit for a new PCP agreement
Voluntary Termination Rights
Under Section 99 of the Consumer Credit Act, you can voluntarily terminate your PCP agreement once you’ve paid:
- 50% of the total amount payable under the agreement
- This includes the deposit, monthly payments, and balloon payment
- You can return the car and walk away without penalty
- The car must be in reasonable condition for its age and mileage
Common PCP Problems
Hidden Commission Arrangements
Many PCP agreements involved undisclosed commission payments:
- Dealers received commission for arranging finance
- This was often not disclosed to the customer
- Customers weren’t told about these arrangements
- Commission could be up to 50% of the finance profit
- You may have paid more than necessary
Mis-selling Indicators
- Pressure to take PCP over other finance options
- Not told about hidden commission or interest rates
- Failure to explain voluntary termination rights
- Unsuitable mileage allowances for your needs
- No discussion of alternative finance products
- Excessive interest rates without justification
Unfair Relationship Claims
Under Section 140A of the Consumer Credit Act, relationships can be unfair due to:
- Excessive charges or interest rates
- Lack of transparency
- Pressure selling techniques
- Failure to assess affordability properly
- Hidden or undisclosed commission arrangements
Recent Legal Developments
Recent court cases and FCA investigations have highlighted:
- Widespread PCP mis-selling across major lenders
- Undisclosed commission arrangements affecting millions
- Potential for significant compensation payments
- FCA reviewing PCP market practices
- Increased scrutiny of dealer practices
Types of PCP Claims We Handle
We help customers claim compensation for various types of PCP mis-selling and unfair practices.
Hidden Commission Claims
Claims for undisclosed commission arrangements between dealers and finance companies
Undisclosed dealer commission
Inflated interest rate
Conflict of trust issues
Lack of transparency
PCP Mis-selling Claims
Claims where PCP agreements were inappropriately sold or key information was withheld
Inadequate product explanation
- Pressure selling tactics
- Unsuitable product recommendation
Unfair Relationship Claims
Claims under Section 140A where the overall relationship was unfair
Excessive interest charged
- Unfair terms and conditions
- Inadequate affordability checks
- Misleading informations
Voluntary Termination Issues
Claims where voluntary termination rights were improperly explained or were obstructed
Rights not explained
- Excessive wear and tear charges
- Obstruction of termination
- Incorrect termination calculations
Affordability Assessment Claims
Claims where proper affordability checks were not conducted before approving finance
Inadequate income verifications
- Failure to check expenditures
- Irresponsible lending practices
- Unsuitable payment amounts
Documentation & Disclosure Issues
Claims relating to inadequate documentation or failure to provide required information
Missing pre-contract information
- Inadequate terms explanation
- Failure to provide copies
- Unclear contract terms
How to Make a PCP Claim
Our proven process helps you claim compensation for PCP mis-selling and unfair finance arrangements.
Free Assessment
Complete our no-obligation assessment of your PCP agreement. We’ll review your details and assess your potential claim.
Document Review
Provide copies of your agreement, sales paperwork, and finance documents. We’ll review everything for mis-selling indicators.
Formal Complaint
We’ll draft and submit a formal complaint to the finance company and dealership on your behalf.
Investigation
We manage the investigation, gather evidence, and negotiate with the finance company.
Ombudsman/Court
If needed, we escalate your case to the Financial Ombudsman Service or pursue court action.
Compensation
Once successful, you receive your compensation payment, minus any agreed fees. We’re paid only if you win.
Building Your PCP Claim
Strong evidence is essential for a successful PCP claim. Here’s what we need to build your case.
Essential Documents
PCP Agreement
Your signed PCP finance agreement showing:
- Total amount of credit and interest rate
- Balloon payment (GMFV) amount
- Mileage allowance and restrictions
- Deposit and monthly payments
Sales Documentation
Record from the sales process:
- Original sales invoice/order form
- Finance application forms
- Pre-contract credit information
- Product comparison documents
- Any promotional materials or quotes
Communication Records
All correspondence with dealer and finance company:
- Emails and text messages
- Phone call records or notes
- Letters and postal correspondence
- Advertisements or marketing materials
Financial Information
Evidence of your financial situation at the time:
- Bank statements from application period
- Income and expenditure records
- Credit reports and scores
- Existing credit commitments
- Any affordability assessments
Key Evidence Areas
Commission Arrangements
Evidence of undisclosed commission:
- No mention of dealer commission in documentation
- Finance company paid dealer commission
- Pressure to accept specific finance deal
- Dealer acting as credit broker without disclosure
- No alternative finance options presented
Sales Process Issues
Problems with how PCP was sold:
- Inadequate explanation of PCP structure
- Misleading mileage allowance advice
- Pressure selling or time-limited offers
- Failure to explain balloon payment
- No mention of voluntary termination rights
Affordability Concerns
Evidence of inadequate affordability checks:
- No income verification
- No detailed expenditure assessment
- Payment unaffordable based on income
- Multiple finance agreements approved
- Finance offered despite poor credit
Unfair Terms & Practices
Evidence of unfair relationship:
- Excessive interest rates or charges
- Unfair mileage restrictions
- Excessive wear and tear charges
- Obstruction of voluntary termination
Why Choose Claims360 for PCP Claims?
PCP Finance Specialists
Our team are experts in PCP mis-selling and commission claims. We win deep expertise in PCP agreements and consumer credit law.
Maximum Compensation
We pursue all available compensation including commission refunds, interest reductions, and statutory interest payments.
Fast Results
Most PCP claims are resolved within 8-12 weeks, with many finance companies settling quickly to avoid escalation.
Industry Knowledge
Extensive experience with all major finance companies and their practices, giving us tactical advantages in negotiations.
Full Support
Complete case management from initial assessment to final compensation payment. No upfront fees. No win, no fee.
92% Success Rate
One of the highest success rates for PCP claims in the industry.
PCP Claims Success Stories
Read what our clients say about our PCP claims service and the compensation they received.
PCP Claims FAQ
Get answers to the most common questions about PCP claims and compensation.
How do I know if I have a PCP claim?
You may have a claim if you weren’t told about dealer commission, the finance was unsuitable for your needs, you weren’t told about your voluntary termination rights, or your affordability wasn’t assessed properly.
Can I claim if my PCP agreement has ended?
Yes, you can claim compensation for PCP mis-selling up to 6 years after the agreement ended, or 3 years from when you became aware of the problem.
What if I don’t have all my PCP paperwork?
We can usually obtain copies of your PCP agreement and other documents from the finance company. We often work with limited paperwork initially.
Yes, you may still be able to claim even if you were partially at fault. Your compensation would be reduced by your percentage of responsibility, but you could still receive substantial compensation.
Will claiming affect my current PCP agreement?
No, claiming for a previous mis-sold PCP won’t affect any current finance agreements you have. Each agreement is assessed separately.
What about voluntary termination – can I still claim?
Yes, you can claim even if you used voluntary termination. You may also have additional claims if your VT rights weren’t properly explained or were obstructed.
How long does a PCP claim take?
Most PCP claims are resolved within 8-12 weeks. Some complex cases may take longer, especially if they need to go to the Financial Ombudsman Service.
What if the finance company rejects my claim?
If your claim is rejected, we can escalate it to the Financial Ombudsman Service (free to you). Many rejections are overturned on appeal.
Claim Your PCP Compensation Today
Don’t let finance companies keep money that’s rightfully yours. Contact Claims360 today for a free assessment of your PCP agreement and find out how much compensation you could claim.
- Available 24/7
- No Win, No Fee
- Free Consultation