Are PCP claims being paid out yet?
- Claim-Smart Contributor
- 10 hours ago
- 5 min read
PCP claims are still being processed by lenders, but they are not currently being paid out under the FCA's redress scheme.
The FCA has paused payouts while legal challenges to the scheme are heard in court. If the scheme is upheld, payouts are expected to start in 2027.
In the meantime, it's still worth submitting your complaint if you think you may be eligible. If you want some extra support, Claim-Smart can help.
If you've already submitted a PCP claim, you may be wondering whether anyone has actually received a payout yet. The short answer is no, not under the FCA's official redress scheme.
Although lenders are being told that they should continue reviewing complaints behind the scenes, compensation payments have been delayed while the redress scheme is going through legal challenges.
Here, we explain why payouts have been delayed, what is happening with existing claims and whether you should still submit a complaint now.
If you're looking for a bit of extra support throughout the claims process, Claim-Smart can help. We can explain whether you may be eligible, help you understand the process and walk you through your next steps.
Are PCP claims being paid out at the moment?
No, PCP claims are not currently being paid out under the FCA's redress scheme. However, that doesn't mean your claim has stopped progressing.
The FCA has told lenders that they should continue working through eligible agreements, doing all the work behind the scenes to prepare claims wherever possible.
What they do not currently have to do is calculate compensation or make compensation payments. This is because the FCA's proposed redress scheme is currently being challenged in court.
Until those legal challenges have been resolved, payouts have effectively been put on hold.
Why have PCP claim payouts been delayed?
PCP claim payouts have been delayed because a number of organisations have launched a legal challenge against the FCA's redress scheme.
These organisations include Volkswagen Financial Services, Mercedes-Benz Financial Services, Crédit Agricole Auto Finance and consumer group Consumer Voice.
The challenge claims that parts of the redress scheme are unlawful, and therefore, that the courts should block it.
Whilst the legal process is ongoing, the FCA has partially suspended the scheme. This is to avoid lenders calculating compensation one way now, with the possibility they may have to repeat the process if the courts decide the scheme needs to change later on.
When are PCP payouts expected to start?
At the moment, the FCA is expecting compensation payments to start during 2027, provided the scheme is upheld by the courts and there are no other appeals.
The Upper Tribunal is expected to hear the legal challenges either in December 2026 or February 2027, with a judgment expected afterwards.
If the court supports the FCA's approach in its current form, lenders will then be able to start calculating compensation and making payments.
If the scheme is changed in any way, the FCA will need to decide what happens next. That could mean creating a new compensation scheme or asking lenders to deal with complaints themselves, which could delay payouts even more.
Which agreements could receive compensation?
The FCA's proposed redress scheme currently covers most Personal Contract Purchase (PCP) agreements and Hire Purchase (HP) agreements taken out between 6 April 2007 and 1 November 2024.
Personal Contract Hire (PCH) agreements are not included because they are lease agreements rather than finance agreements.
If you're not sure what type of finance agreement you had, Claim-Smart can help you understand whether your agreement may qualify.
What if I've already made a PCP claim?
If you've already made a PCP claim, there may not be anything you need to do right now.
Your lender should continue reviewing your agreement and preparing your claim while the legal process continues.
Lenders have also been told they should contact customers if they do not think they are entitled to compensation under the scheme.
If you receive a letter saying you are not eligible and you think your lender has made a mistake, you can ask them to review their decision.
If you're still unhappy, you may be able to take your complaint to the Financial Ombudsman Service.
If you don't hear anything, it doesn't necessarily mean your claim has been approved or rejected, it may just be progressing behind the scenes.
Should I still submit a PCP claim now?
Yes. Even though compensation payments have been delayed, the FCA is still encouraging consumers to submit complaints if they think they may have been affected.
Submitting your complaint now means your lender can start reviewing your agreement while the legal challenges continue.
If the scheme is upheld in its current form, people who have already complained are expected to move through the process faster than those who wait until later.
The FCA also points out that you don't need to use a claims management company to make a complaint. You can complain directly to your lender for free.
However, if you would like support understanding your options, checking your eligibility or managing your claim, Claim-Smart can help guide you through the process.
How much could PCP compensation be?
The FCA currently estimates that the average compensation payment will be around £829 per agreement.
However, every agreement is different.
The amount you receive will depend on:
The amount you borrowed
The interest rate you paid
The commission involved
How long your agreement lasted
When the agreement was taken out
Some customers may end up getting less than the average, while others could get considerably more.
It's also important to remember that the way compensation is worked out could still change depending on the outcome of the legal challenges.
Are PCP claims still being processed?
Yes. Although compensation isn't currently being paid, lenders are still being told to prepare claims.
This includes working out which customers were affected, reviewing finance agreements and gathering information about commission arrangements.
The idea is that, if the scheme is upheld, lenders will be ready to start calculating compensation as quickly as possible.
So, are PCP claims being paid out yet?
So, are PCP claims being paid out yet? Not yet.
While lenders are being told to keep processing complaints behind the scenes, compensation calculations and payments have been paused while FCA’s legal challenges are ongoing.
Although this is frustrating, it doesn't necessarily mean there is anything wrong with your claim or that you won’t be paid out eventually.
If you think you may have been affected by hidden commission arrangement on a PCP or HP agreement, it is still worth submitting your complaint now so your agreement can start moving through the process.
You can complain directly to your lender for free, or, if you would like support understanding the process and managing your claim, Claim-Smart is here to help.
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