How to Make a PCP Claim: Guide to Car Finance Compensation

Have you taken out a Personal Contract Purchase (PCP) car finance agreement in recent years? You might be entitled to a PCP claim if your finance agreement was mis-sold. Whether you’re still paying your finance or have already settled it, understanding how to reclaim potentially unfair charges could lead to compensation.

What is a PCP Claim?

A PCP claim is a request for compensation when a PCP car finance agreement has been mis-sold. This typically happens when dealers fail to disclose commission arrangements.

Car finance mis-selling is said to have affected millions of finance customers across the UK, with the Financial Conduct Authority (FCA) identifying widespread issues in the car finance industry. Successful claims can result in refunds of overpaid interest, undisclosed commissions, and in some cases, compensation for financial distress.

How Can I Make a Successful PCP Car Finance Claim to Get My Money Back?

Making a successful PCP claim requires understanding your eligibility, gathering the right evidence, and either submitting a properly structured claim yourself or working with experts who can handle the process for you. With the right approach, you could recover thousands in compensation for car finance mis-selling.

Specialised claims services like MyCarLoanClaims help customers reclaim what they’re owed with minimal hassle.

How to Check if You’re Eligible for a PCP Finance Claim

Before starting the claim process, it’s essential to determine if you qualify for compensation. If your car finance agreements were mis-sold based on one of the following, you might be entitled to compensation:

• DCA (Discretionary Commission Arrangements): These allowed brokers or dealers to adjust the interest rate within a set range from the lender. The higher the rate they chose, the more commission they earned. Customers were usually unaware of this setup.
• UDC (Undisclosed Commission Arrangements): This refers to any commission paid to a broker or dealer—whether flexible or fixed—that wasn’t clearly explained to the customer.

Check your claim eligibility for free as the first step towards a potential claim using specialist services like MyCarLoanClaims. Their quick 2-minute assessment can tell you immediately if you have grounds for a potential claim.

The Expert Approach: Why Choose Professional Help for Your PCP Claim

Here’s why people choose specialist services like MyCarLoanClaims:

• Specialised Expertise: Their team has extensive experience specifically with financial claims
• No Upfront Fee: You start your claim for free
• Comprehensive Service: They handle the claim, no need to deal directly with the finance companies
• Time-Efficient: They save you time by assisting with the claim

The DIY Approach: Basic Steps for Self-Filing

If you prefer to pursue your PCP refund independently, here’s a simplified overview of the process:

• Gather all relevant documentation, including ascertaining the agreement reference and dates of your car finance agreement
• Write a formal complaint letter that sets out the reasons why you believe you were mis-sold the finance
• Submit your complaint to the finance provider’s designated complaints department and submit
• 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).
• If require,d escalate to the Financial Ombudsman Service when the provider’s response is unsatisfactory, as is frequently the case with these claims.

While this DIY approach is possible, many customers find the process time-consuming and complex.

Time For Making a PCP Claim

If you entered into a car finance agreement between 2007 and 2020, you may be eligible to make a claim.

The sooner you start your claim, the sooner you might receive compensation. A quick eligibility check with a specialist service can instantly confirm if you could qualify and get your claim moving forward.

Important Note for Non-UK Residents

MyCarLoanClaims services are exclusively available to UK residents. If you live abroad but previously had UK car finance, you can still pursue a PCP claim. We cannot assist international applicants but you could recover compensation if eligible.

Conclusion

Making a PCP claim could result in compensation for mis-sold car finance. While some choose to pursue claims independently, professional assistance can save you time and stress.

Frequently Asked Questions About PCP Claims

Q. Can I make a PCP claim if I’ve already paid off my finance?

A. Yes, you can still make a claim even if you’ve completely paid off your finance agreement, provided you’re within the time limits. Specialist services can help with both current and settled agreements.

Q. Will making a PCP claim affect my credit score?

A. No, making a PCP claim will not negatively impact your credit score. The claim process is separate from credit reporting systems, and exercising your consumer rights cannot be used against you in credit assessments.

Q. How much does it cost to use a claims service?

A. Most specialist services operate on a success-based fee structure. This means there are no upfront costs to start your claim. They charge a capped fee if they successfully secure compensation for you, typically taken as a percentage of the amount recovered which is set by the regulators.

Q. What happens if my finance company rejects my claim?

A. If your finance provider rejects your claim or offers an unsatisfactory settlement, specialist services can escalate your case to the Financial Ombudsman Service. Their experienced teams will handle this entire process on your behalf, giving you the best possible chance of a favorable outcome.