PCP Claims

Millions of drivers took out PCP agreements to spread the cost of a car, but many were charged unfair commission fees, often without knowing about them or how they worked.

If you had a PCP deal between 2007 and 2024, you may be entitled to compensation. This guide explains how mis-selling happened and how to start your claim.

What Is Personal Contract Purchase?

Personal Contract Purchase (PCP) is a car finance agreement that allows you to spread the cost of a vehicle through monthly payments, without committing to buying it outright from the start.

It’s commonly used for new and nearly-new cars and usually comes with lower monthly payments than Hire Purchase.

With PCP, you pay a deposit, followed by fixed monthly instalments over an agreed term, typically two to four years. At the end of the agreement, you have three options: return the car, pay a final ‘balloon’ amount to own it, or part-exchange it for a new deal.

Many people choose PCP because it allows them to drive a newer vehicle with smaller monthly payments. However, it also comes with mileage limits, condition requirements, and, as the recent mis-selling scandal has revealed, a lack of transparency in how some deals were structured.

Why PCP Customers Might Have Been Mis-Sold

Between April 2007 and November 2024, many motorists who took out a Personal Contract Purchase agreement may have been mis-sold. The issue centres on how lenders, dealers, and brokers used discretionary commission arrangements (DCAs). These allowed dealers to increase the interest rate on your finance in exchange for a higher bonus without having to tell you. The Financial Conduct Authority (FCA) banned DCAs in 2021, calling them unfair. Since then, millions of complaints have been made.

A Supreme Court ruling in August 2025 means that agreements involving non-discretionary commissions may also be unlawful if they're deemed excessive and detrimental to the consumer.

The FCA will launch a redress scheme in early 2026 to provide compensation to affected consumers.

You may have been mis-sold your PCP agreement if:

  • You weren’t told about any commission being paid to the dealer or broker.
  • You weren't offered the most competitive rate available.
  • The agreement was pushed through with little to no affordability checks.

If any of this sounds familiar, you could be entitled to compensation, even if you no longer have the car or the finance is already paid off.

How Can I Check If I’m Eligible for a PCP Claim?

If you had a PCP agreement between April 2007 and December 2024, you could be owed compensation, especially if you weren’t told about commission and how it worked or were charged more than necessary.

Checking your eligibility is quick and free.

Enter your car registration to start the check. No paperwork required.
Answer a few quick questions about your finance agreement.
Get an instant assessment for signs of mis-selling.
Get started on your claim if you're approved.

There’s no cost, no paperwork needed to get started, and no obligation to proceed. Start your free PCP claim check today and find out if you’ve been affected.

Start your free check