How much does it cost to make a PCP or car finance claim?
It's completely free to complain to your PCP lender yourself, and free to escalate to the Financial Ombudsman if you're unhappy with their response.
Claims management companies like Claim-Smart work on a no win, no fee basis, so there's nothing to pay upfront and nothing to pay if you don’t end up being paid out.
If you are awarded compensation, any fee is capped by FCA rules and comes out of what you're paid, not on top of it.
If you’re thinking about making a PCP or car finance claim, you may be wondering how much it costs to do so.
The good news is that you can complain to your lender completely for free if you want to.
However, some people choose to work with a claims management company because it provides them with an extra layer of support.
If you're not yet sure whether your PCP agreement could be eligible for compensation, Claim-Smart can help you look into this before you decide what to do next.
Is it free to make a PCP claim myself?
Yes, it's completely free to complain directly to the lender who provided your car finance.
You can write to them yourself, explain why you think the agreement may have been mis-sold and ask them to investigate. If you're not happy with their response, you can also take your case to the Financial Ombudsman Service, which doesn't charge consumers either.
Plenty of people manage this whole process without any outside help, but if you want some extra help or support, Claim-Smart can help.
How much does it cost to use a claims management company like Claim-Smart?
It doesn’t cost anything upfront. Claim-Smart works on a no win, no fee basis, so you're not charged just for getting in touch or starting an investigation into your agreement.
A fee only applies if your claim is successful and you actually receive compensation. If nothing is paid out, you don't pay anything either.
How are claims management company fees calculated?
Fees aren't something a company can just decide for themselves. The FCA sets a strict fee cap for financial services claims like these, and it works on a sliding scale based on how much compensation you're given.
Generally, the cap runs from 30% on smaller payouts down to 15% on bigger ones, plus VAT. The more you're granted, the lower the percentage the fee is based on.
You can see Claim-Smart’s fees here.
What would this look like on an average payout?
The FCA currently estimates the average payout for an eligible agreement at around £829, though every case is different.
On a payout of that size, a fee would fall into the lowest band, working out at roughly £249 plus VAT, so around £299 in total. That would leave you with £531.
This is only an example based on the FCA's current average figure, not a promise of what any single claim will pay out.
It's worth separating cost from timing here too. The FCA's redress scheme is currently paused while a legal challenge is heard by the Upper Tribunal, expected in December 2026 or February 2027, so payouts aren't landing yet regardless of who handles your claim.
If you'd like a clearer idea of what a fee might look like on your own agreement, Claim-Smart can talk you through it before you commit to anything.
What happens if my claim isn't successful?
You don't pay anything. Claim-Smart's no win, no fee model means there's no cost to you if your claim doesn't end in a payout.
Does using a claims management company reduce how much compensation I get?
Only in the sense that a fee is taken from the amount you're paid, rather than added on top.
Your lender pays the same amount of compensation either way. Using a claims management company doesn't change what the lender owes you, it just means part of the payout goes towards the company for managing your case.
Why would someone pay a fee instead of claiming for free?
Since you can complain for free, it's worth thinking about what a claims management company actually adds before deciding.
People usually turn to Claim-Smart when they:
Don't know who their original lender was
No longer have the paperwork for an old agreement
Would rather not manage letters and follow-ups themselves
Want help understanding a lender's response
Prefer to have someone else handle the process from start to finish
None of these mean you have to use a claims management company. They're just some of the reasons why some people choose to.
So, how much does it cost to make a PCP or car finance claim?
It costs nothing to complain to your lender yourself, and nothing upfront to use a claims management company like Claim-Smart either. A fee only applies if you're paid compensation, and it's capped by FCA rules.
If you'd rather handle things yourself, that's completely fine. If you'd like support working out whether your agreement qualifies or someone to manage the process for you, get in touch with Claim-Smart to find out more.
*Please see our terms and conditions for our fee structure and cancellation terms.
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