Mis-Sold PCP Car Finance Claims
What is a PCP Claim?
A PCP (Personal Contract Purchase) claim is a legal complaint against a finance provider or broker who mis-sold your car finance agreement.
This includes:
- Not being told about commissions paid to the dealer or broker
- Being offered inflated interest rates without explanation
- Poor or no affordability checks
We also help with Hire Purchase (HP) claims. If you took out any car finance before January 2021 and the process wasn’t clear or fair, you might be owed compensation.
Who is Eligible to Claim?
- You took out PCP or HP car finance before January 2021
- You weren’t told the dealer received a commission
- The finance was unaffordable, or you felt pressured into it
- You didn’t fully understand the repayment terms or balloon payment
Why Were PCP & HP Finance Deals Mis-Sold?
Up to 4 in 10 car finance customers may have been mis-sold their agreements, and many don’t even realise it. Hidden commissions, inflated interest rates, and poor affordability checks were common across millions of PCP and HP finance deals in the UK.
Hidden Commission
Many car finance agreements included hidden commissions paid to dealers or brokers, without the customer being informed. This often meant the deal offered was not the best available.
Inflated Interest Rates
Some dealers increased interest rates on finance agreements to boost their commission earnings, leading customers to pay more over the term of the agreement without their knowledge.
Poor Affordability Checks
Brokers sometimes failed to properly assess whether customers could realistically afford the finance, meaning agreements were granted to those who may not have been eligible.
How We Can Help
At Courmacs Legal, we specialise in handling mis-sold PCP and HP car finance claims. From reviewing your agreement to negotiating with lenders, our team manages the entire process on your behalf. We’ll work to recover any compensation you’re owed, while keeping you informed throughout your claim, with no upfront costs.
- Full legal support from start to finish
- No win, no fee service
- Regular updates throughout the process
- Clear, jargon-free communication
PCP & HP Claim FAQs
Need to know more? Here are the answers to our most frequently asked questions in relation to PCP or HP Claims.
If you entered into a PCP or HP finance agreement between April 2007 and January 2021, you may be eligible to claim compensation. You may have grounds for a claim if you were not informed about any commission payments to the dealer or broker, or if the agreement was unaffordable at the time it was taken out.
There are two main routes for claims:
Discretionary Commission Arrangement (DCA) Claims
Where a dealer or broker was given discretion to adjust your interest rate to maximise their commission — without disclosing this to you.- Affordability Claims
Where the lender failed to properly assess your financial circumstances and you were provided with a loan you couldn’t realistically afford.
Even if you have finished paying off your finance, or no longer have the vehicle, you could still be eligible to claim.
We cannot guarantee a specific compensation figure, as every claim is assessed individually based on factors such as:
The vehicle’s value
Your monthly payments
The amount of interest paid
The commission arrangements linked to your agreement
From the claims we’ve handled so far, the average compensation amount recovered for our clients is £5,318.25, with the highest amount awarded being £10,446.
Our team will work to maximise the compensation you’re entitled to based on the specific circumstances of your case.
Once you sign our Damages Based Agreement (DBA), also known as a No Win, No Fee agreement, we can begin progressing your claim with minimal paperwork required from you.
We may request:
A copy of your ID (for Anti-Money Laundering checks and Data Subject Access Requests)
Completion of a Witness Questionnaire to gather key information about your agreement
All your personal information is handled with the highest standards of care and security.
If you’d like a member of our team to go through any paperwork with you for clarity, please contact us here:
The time it takes to resolve a PCP or HP claim can vary. Typically, cases may take several months to complete. In some circumstances, it can take up to 12 months or more, depending on the lender’s cooperation and the complexity of the case.
Important update:
The Financial Conduct Authority (FCA) has placed a pause on PCP claims while they complete a full review of the market. As a result, active claims cannot be fully settled until 4 December 2025.
In addition, we are awaiting the outcome of a Supreme Court judgment (expected in July 2025), which could further impact the legal process for PCP claims.
Rest assured, we continue to progress your claim behind the scenes, preparing all necessary documentation and evidence so we are ready to act as soon as regulatory restrictions are lifted.
We will keep you updated regularly throughout the process.
At present, we are able to pursue PCP and HP claims without the need for court proceedings.
However, depending on the outcome of the Supreme Court judgment expected in July 2025, it may become necessary to issue claims in court in order to recover compensation.
As a fully regulated law firm, we are able to represent you directly in court if needed, without passing your case to a third party.
You can feel confident knowing you’ll remain supported by our experienced legal team throughout the entire process.
Yes, you can still make a claim even if you have paid off your PCP agreement. The key factor is whether you were informed about any undisclosed commissions or whether the finance was unaffordable at the time of entering the agreement.
No, making a PCP claim will not affect your credit score or future finance options. The claim is about reclaiming hidden or undisclosed commissions and unaffordable finance agreements, not disputing your creditworthiness.
At Courmacs Legal, we operate on a no win, no fee basis, meaning you won’t pay anything upfront or if your claim is unsuccessful*. If your claim is successful, our fees are deducted from the compensation awarded, and these are capped to ensure fairness. Below is a breakdown of our fee structure:
Band | Compensation Amount (£) | Maximum Fee Percentage (%) | Maximum Fee Amount (£) |
1 | 1-1,499 | 30% | 420 |
2 | 1,500 – 9,999 | 28% | 2,500 |
3 | 10,000 – 24,999 | 25% | 5,000 |
4 | 25,000 – 49,999 | 20% | 7,500 |
5 | 50,000 or above | 15% | 10,000 |
Example Calculations:
- If your compensation is £1,000, our maximum fee would be 30% (£300), plus VAT (£60), making the total fee £360.
- If your compensation is £5,000, our maximum fee would be 28% (£1,400), plus VAT (£280), making the total fee £1,680.
- If your compensation is £50,000, our maximum fee would be 15% (£7,500), plus VAT (£1,500), making the total fee £9,000.
We are committed to complete transparency about our fees, ensuring you’re always informed. If you have any questions about how fees are calculated, please don’t hesitate to contact our team.
*The only time you may be liable for costs is if you cancel your claim after the 14-day cooling-off period, without allowing us to continue the process. For more information please see our Cancellation Policy.
We work on a No Win, No Fee basis, which means you won’t pay our legal fees if your claim doesn’t succeed. Our work is backed by insurance, so if your claim is unsuccessful, you’re protected.
If your claim is successful, our agreed fee (plus VAT) will be deducted from your compensation before it’s paid to you.
The only time you may be liable for costs is if you cancel your claim after the 14-day cooling-off period, without allowing us to continue the process.
You can start your PCP claim by filling out our online claim form or contacting our team. We will assess your case and guide you through the process from start to finish.
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