Am I entitled to a PCP claim?
- Claim-Smart Contributor
- Jun 10
- 5 min read
You may be entitled to a PCP claim if you took out PCP or HP finance on a car, van, motorbike or campervan between 6 April 2007 and 1 November 2024.
To find out if you are entitled to compensation, the lender will need to look into whether certain commission arrangements were properly disclosed to you.
You do not have to use a claims management company to complain, but Claim-Smart can help if you want support throughout the process.
You may be entitled to a PCP claim if you took out a PCP or Hire Purchase agreement between 6 April 2007 and 1 November 2024 and your lender paid a commission to the dealer or broker that was not properly explained to you.
That sounds easy enough to understand, but in reality, many drivers are still unsure where they stand. Especially if the agreement was years ago, you might not remember the name of your lender, you might have sold the car years ago or you might have paid off the finance and assumed it doesn’t matter anymore. And until recently, it didn’t.
Recently, the FCA announced their redress scheme, designed to pay out compensation to those who were mis-sold car finance.
And whilst the scheme itself is positive, knowing whether it applies to you can feel confusing.
Here, our guide explains who may be eligible, what types of finance are usually included, and how to take the next step if you want to check if you are entitled to a claim.
If you’re looking for a bit of extra support, Claim-Smart can help. We can advise on whether you may be entitled to a PCP claim and guide you through the process.
What is a PCP claim?
A PCP claim is a complaint about the way a Personal Contract Purchase (PCP) finance agreement was sold.
The current FCA motor finance redress scheme focuses on cases where customers may not have been properly told about commission arrangements between the lender and the dealer or broker. This is because these arrangements will have increased the interest rate or the overall cost of the finance some of which were secret i.e. not disclosed.
This does not mean every PCP agreement was mis-sold and is eligible for compensation, but if your agreement falls within the right timeframe and may have included one of the relevant commission arrangements, it’s worth checking.
At Claim-Smart, we help customers understand whether they may have grounds to start a PCP or car finance claim. You can also complain directly to your lender for free if you prefer to manage the process yourself, but if you’d like a helping hand, we’d be happy to support.
Who may be entitled to make a PCP claim?
You may be entitled to a PCP claim if you used motor finance to buy a vehicle between the 6th of April 2007 and 1st of November 2024 and the commission arrangement wasn’t disclosed to you.
This can include finance used for cars, vans, motorbikes and campervans.
The finance type also matters. The FCA scheme generally covers Personal Contract Purchase and Hire Purchase agreements. It does not include Personal Contract Hire.
So, if you leased a car and handed it back at the end without any option to buy it, then you may not be entitled to a PCP claim. However, if you aren’t sure whether your agreement was PCP, HP or PCH, it is worth checking your paperwork, credit file or old bank statements.
The PCP claim eligibility checklist
As a general guide, you may be entitled to a PCP claim if:
Your agreement started between 6 April 2007 and 1 November 2024
The vehicle was a car, van, motorbike or campervan
The finance was PCP or HP rather than a lease
The vehicle was for personal use, commuting, or some small business/sole trader use
The dealer, broker or lender had a commission arrangement that was not properly disclosed to you
You have not already started a claim either yourself or with another third party or already accepted compensation for the same agreement
Your complaint has not already been finally decided by the Financial Ombudsman Service or a court
However, even if you hit all of the criteria, it still isn’t a guarantee that you have an eligible claim. Ultimately, the lender still needs to look at whether your agreement falls within the redress scheme and whether any compensation is due.
If you aren’t sure where you stand, Claim-Smart can help you understand the process and what information you may need before making a decision.
Can I claim if the car finance is already paid off?
Yes, you will still be able to complain even if the finance agreement has been fully paid off.
Many people assume they can only claim if they are still paying for the vehicle, but that is not the case. A historic agreement will still be relevant if it falls within the scheme’s dates and the lender agrees that the commission disclosure was unfair.
You may also be able to check an agreement even if you sold the vehicle, part-exchanged it or no longer have the paperwork.
Can I claim if I had more than one PCP agreement?
Yes. If you had multiple PCP or HP agreements during the relevant period, each agreement will need to be looked at separately.
For example, you may have financed one car in 2013 and another in 2019. One agreement could be eligible while another may not be, depending on the lender and the commission arrangement.
If you had multiple PCP agreements with different lenders, you may need to contact each lender separately or wait until they contact you directly. If you are working with Claim-Smart, the team can help you understand how to organise the information you have and figure out which agreements may be worth checking.
Why may I not be entitled to make a PCP claim?
There are some situations where you may be less likely to fall within the FCA’s redress scheme. For example, you may not be included if:
Your agreement was Personal Contract Hire rather than PCP or HP
Your finance was taken out before 6 April 2007 or after 1 November 2024
You had a 0% interest deal
You have already accepted compensation for the same agreement
Your complaint has already been finally decided by the Financial Ombudsman Service or a court
The vehicle finance was for business purposes that sit outside the scheme
Should I complain now or wait?
The FCA has said that people can complain to their lender now in order to get it processed faster.
However, it’s important to note that there have been legal challenges to the FCA scheme, so some compensation timelines may change. However, gathering your information and submitting a complaint now can still be a sensible step if you believe you may be entitled to compensation.
If you have already complained, you may not need to do anything else for now unless your lender asks for more information.
Filing a PCP claim
So, are you entitled to a PCP claim? The honest answer is that it depends on your agreement; when it was taken out, how the finance was arranged and whether commission information was properly disclosed to you at the time.
You may not know the answer straight away, but if your agreement was taken out between the 6th of April 2007 and 1st of November 2024, and it was PCP or HP finance for a motor vehicle, it may be worth looking into.
You can do this yourself for free through your lender, or you can speak to Claim-Smart if you want extra guidance understanding your options and taking the next step.
* Please see our terms and conditions for our fee structure and cancellation terms.
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