Car finance redress
PCP Car Finance Claims: Are You Owed Money?
Independent and free. We're not a claims firm — here's how PCP fits the scandal.
Redress estimate
Any figures here are an estimate, not a promise, and nothing on this page is financial or legal advice. You can claim free yourself — you don't need a claims firm.
PCP claims are about hidden, high or discretionary commission on Personal Contract Purchase deals taken out between 6 April 2007 and 1 November 2024. PCP was the dominant way to finance a new car in that period, so a large share of affected agreements are PCPs.
Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement. Check your position with the compensation estimator, and read the scandal explained.
Can you claim on a PCP agreement?
Yes — PCP agreements are covered by the same redress as other car finance, if they carried an undisclosed DCA, high-commission arrangement or contractual tie. Both PCP and HP deals fall within the FCA scheme.
The finance type doesn't decide it; the commission and disclosure do. What matters is whether your rate was raised to earn the broker more, and whether that was explained. The scheme window runs from 6 April 2007 to 1 November 2024, where commission was payable to a broker.
Why PCP deals are often affected
PCP was hugely popular between 2007 and 2024, and the vast majority were arranged by commission-paid dealers and brokers. That's exactly the setup where a discretionary commission arrangement could apply.
A PCP keeps the monthly payment low by financing only the car's depreciation, with a large optional final "balloon" payment at the end. But the interest rate on the financed amount still drove the broker's commission — so if the rate was flexed up inside a DCA, you paid more interest across the term, even though the monthly looked cheap.
Because PCPs tend to be larger and longer than equivalent HP deals (the balloon stretches the term), the overpaid interest on a mis-sold PCP can be substantial. That's one reason the scheme average is about £829 per agreement, with wide variation.
PCP vs HP commission maths
Were you affected? A checklist
Check the date, the route and the disclosure. The more boxes you tick, the more it's worth complaining.
If you took the PCP via a broker or dealer and can't remember commission being explained, it's worth checking. A 0% PCP or one with no broker commission is generally excluded.
- Your PCP started between 6 April 2007 and 1 November 2024 (commission payable to a broker).
- It was arranged through a dealer or broker paid commission — most dealership PCPs were.
- Your interest rate could have been raised to earn more commission (a DCA), or a large commission applied.
- The commission was not clearly disclosed to you in a way the FCA accepts.
PCP-specific questions
A few PCP situations come up often. Here's how the scheme treats each.
- You handed the car back at the end — you can still claim; the commission issue exists whether you kept, returned or settled the car.
- You settled the PCP early — you can still claim; see sold the car.
- You're still mid-term on the PCP — you can complain now; redress may come as a credit to your live agreement.
- Your PCP had a GMFV/balloon — the balloon doesn't change eligibility; what matters is the commission on the financed amount.
How to check your own PCP for a DCA
You usually can't see a DCA on the face of a PCP agreement, so the check is to confirm the date, the broker route and then ask the lender directly. Three steps cover it.
The lender has to answer, because the scheme obliges firms to confirm commission details when asked. If the answer is yes, your PCP is likely in scope; if no commission was paid (a true 0% PCP), it's outside the scheme.
- Confirm your PCP started between 6 April 2007 and 1 November 2024 and was arranged via a dealer or broker (not a direct bank loan).
- Find your agreement's APR, lender name and start date — see how to find your lender if you're unsure who financed it.
- Ask the lender in writing whether a discretionary commission, high-commission arrangement or contractual tie applied, and how much commission was paid. Our letter template does this for you.
You're entitled to ask
PCP vs HP vs PCH at a glance
The product you had changes whether you're in scope at all, and how any redress is sized. PCP and HP are both motor finance; PCH leasing is not.
If you're unsure which you had, look at the paperwork: a PCP shows an APR, a lender and a balloon (sometimes called GMFV); HP shows an APR and a lender with no balloon; a lease shows monthly rentals and no APR. The estimator on our PCP and HP pages can help you tell them apart.
| Feature | PCP | HP | PCH (lease) |
|---|---|---|---|
| Is it motor finance with a loan? | Yes | Yes | No — it's a rental |
| Broker commission possible | Yes — very common | Yes — common | Typically no |
| Can carry a DCA | Yes — until 28 Jan 2021 | Yes — until 28 Jan 2021 | No |
| In the redress scheme | Yes, if commission was undisclosed | Yes, if commission was undisclosed | No — outside scope |
| Has a balloon/GMFV | Yes | No — you own it at the end | No — you never own it |
A worked PCP redress example
Because PCPs run longer and finance more, the rate gap on a DCA can translate into a meaningful figure — but it's still capped for about one in three cases. Here's the shape of it.
The reason PCP figures can look larger than equivalent HP is the longer term and bigger financed amount. But the method is identical: identify the DCA, reprice at the rate you would likely have been offered, and reconcile the difference.
Illustrative: a £20,000 PCP over 48 months
PCP-specific claims-firm traps
PCP owners are a prime target for claims-firm marketing, because the numbers look bigger. The traps are the same as elsewhere — just louder.
- 'PCP owners get more, sign up now' — the size of any redress depends on your deal, not on who files it; the lender works out the maths either way.
- 'We specialise in PCP claims' — there is no PCP-only route; the scheme covers PCP, HP and other qualifying finance identically.
- 'We'll deal with the balloon for you' — the balloon doesn't need dealing with; it isn't commission and doesn't change eligibility.
- 'Pay an upfront fee to secure your PCP claim' — never pay upfront; a legitimate complaint to your lender is free, and the ombudsman is free.
PCP doesn't need a specialist
How much and how to claim free
The scheme returns overpaid interest plus interest on top, so amounts vary by deal — and claiming is free. Complain to your lender, then the ombudsman if needed.
Estimate with the compensation estimator, then follow how to claim. Claiming is free and you can do it yourself: complain to your lender first, then escalate to the Financial Ombudsman Service. You do not need a claims-management company taking a cut. CMCs can take up to about 36% of any payout — money you keep entirely if you DIY.
How the balloon payment fits in
The optional final balloon payment is not itself commission — but the interest rate on the financed amount (the depreciation) is where a DCA bit. So the balloon doesn't change your eligibility.
On a PCP you finance the car's drop in value across the term, then either pay the balloon to own the car, hand it back, or refinance the balloon. The broker's commission was tied to the interest rate on the financed depreciation, not to the balloon itself. So whether you paid the balloon, handed the car back, or refinanced doesn't change whether a DCA applied.
What can change is the size of any redress: a larger financed amount or a longer term usually means more overpaid interest if the rate was raised.
PCP vs leasing (PCH)
PCP is motor finance and is in scope; leasing (Personal Contract Hire, PCH) is a hire agreement and is not. The difference is whether there was a loan with commission.
A PCP is a regulated consumer credit agreement with a lender, an interest rate, and (often) broker commission — so it can carry a DCA and fall in the scheme. A lease (PCH) is a rental: you never own the car, there's no loan, and typically no broker commission of the kind the scheme targets. So a PCH lease is outside the scheme.
If you're not sure which you had, check your paperwork: a PCP will name a lender and show an APR and a balloon; a lease will show monthly rentals and no balloon.
Quick test
Used-car PCPs
Used-car PCPs are covered on the same basis as new-car PCPs. The scheme doesn't distinguish by whether the car was new.
Many of the affected agreements are used-car PCPs, because dealers arranged a lot of used-car finance through commission-paid brokers during the 2007–2024 window. The eligibility test — undisclosed DCA, high-commission arrangement or contractual tie — applies identically.
Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement.
Frequently asked
Can I claim compensation on a PCP?
Why are PCP deals often affected?
How much could a PCP claim be worth?
Can I claim if I handed the PCP car back?
How do I claim on a PCP?
How do I check if my PCP had a DCA?
Is a PCP claim worth more than an HP claim?
Does the balloon payment reduce my PCP claim?
Sources
We cite regulators and official UK sources only.
- Financial Conduct Authority — motor finance redress schemefca.org.uk
- UK Supreme Courtsupremecourt.uk
- Consumer Credit Act 1974legislation.gov.uk
- Financial Ombudsman Servicefinancial-ombudsman.org.uk
Work out your next step
Independent calculators — pick the one that fits your situation.