Personal Contract Purchase (PCP) is one of the most popular ways to finance a car in the UK. The monthly payments are usually lower, the structure looks flexible, and you often get the choice to return, upgrade or buy the car at the end.
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Average of £829** per agreement
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You can claim without using a claims management company, to your finance provider and then to Financial Ombudsman Service (FOS), for free. The FCA has introduced a free consumer redress scheme.
**The FCA currently estimates that most individuals will potentially receive an average of £829 in compensation per agreement. We find on average 2 car finance agreements per client, giving a potential claim value of £1,658. See: https://www.fca.org.uk/news/statements/fca-confirms-motor-finance-redress-scheme
PCP car finance often includes more complexity than many people realise, such as balloon payments, mileage restrictions, additional charges, future value assumptions and interest that may not have been clearly explained at the point of sale. Over time, many customers have looked back at their PCP agreements and questioned whether these key details were properly discussed or understood. Mis-sold Expert brings together clear, easy-to-understand information about PCP car finance mis-selling, helping you understand how PCP works, what may have gone wrong, and how we can support you in reviewing your agreement.
Check My ClaimCheck In SecondsA typical PCP agreement involves:
A PCP finance agreement is a type of car finance loan where you pay a deposit followed by a monthly fee, with options at the end of the term.
It’s flexible, but it can also be confusing, especially when those choices aren’t explained in the way they should be.
Mis-selling often happens when important information is missing or not communicated clearly. For many people, this only becomes obvious later on.
Common issues include:
PCP car finance claims often arise from mis-sold agreements involving undisclosed dealer commissions, hidden fees, inflated interest rates, and poor affordability checks.
If any of this sounds familiar, Mis-sold Expert can review your PCP documents and help you understand what may have gone wrong.
Claims can be filed for PCP agreements taken out between April 6, 2007, and November 1, 2024.
For a lot of customers, the balloon payment is the part of the PCP agreement that causes the most worry. It’s often thousands of pounds and can make the car far more expensive overall.
If this wasn’t explained clearly, or was made to sound optional when it wasn’t fully understood, it can lead to people feeling misled about the true cost of the agreement.
Commission payments are made on approximately 95% of UK car finance agreements, with around 40% potentially involving unfair discretionary commission arrangements (DCAs). Many PCP deals involved car finance commission being paid to the dealership or finance broker.
In some cases, the dealer could increase the interest rate to earn more commission, something known as a discretionary commission agreement.
The FCA's investigation found that lenders systematically incentivised brokers and car dealers to charge customers higher interest rates through discretionary commission agreements, costing consumers an estimated £300 million annually. In 2021, the FCA banned discretionary commission arrangements that incentivised dealers to increase interest rates, as these created conflicts of interest and led to higher costs for consumers.
The FCA also found that consumers could be overcharged by as much as £829 from these arrangements.
The FCA has raised concerns about this, and many customers were never made aware that it was happening.
How It Works
Our system securely connects with trusted credit agencies and vehicle records to find your car finance agreements, even if you've moved house or changed your name. It's only a soft credit check, so your credit file won't be negatively affected.
After you enter a few basic details, our system searches for your past car finance agreements, including those dating back to 2007, where available.
Once your finance agreements are found, Mis-sold will review your agreements in detail, we'll either do this ourselves or send it to one of our partner law firms. You will be updated every step of the way while we collect evidence, negotiate directly with the lenders, and fight your case for you.
You can claim without using a claims management company, to your finance provider and then to Financial Ombudsman Service (FOS), for free. The FCA has introduced a free consumer redress scheme.
Discretionary commission arrangements (DCAs) represent one factor that has contributed to concerns about car finance agreements in the UK. Under these arrangements, lenders permitted car dealers or brokers to set interest rates on car finance products, including Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements, with the rate often adjusted to generate higher commission levels. This structure meant that borrowers may have faced higher costs than would otherwise have been the case, often without being informed about how their rate was determined.
The Financial Conduct Authority (FCA) has identified DCAs as a significant element in car finance concerns, with estimates suggesting that up to 40% of UK car finance agreements may have involved these commission practices. Where finance agreements included discretionary commission arrangements, borrowers may have encountered elevated interest rates, potentially resulting in higher monthly payments and increased overall costs, depending on their individual circumstances.
Once your finance agreements are found, Mis-sold Expert will review your agreements in detail. You will be updated every step of the way while we collect evidence, negotiate directly with the lenders, and fight your case for you.
When making a complaint, individuals should gather documentation relevant to their agreement, such as interest rates and fees. Don't worry if you do not have this at hand; Mis-Sold Expert can help you find the information needed.
You can claim without using a claims management company, to your finance provider and then to the Financial Ombudsman Service (FOS), for free. The FCA has announced a redress scheme explaining the process for consumers to make a claim regarding any past finance agreements.
People often come to Mis-Sold Expert when they:
You may be eligible to make a PCP finance claim if the salesperson failed to present all finance options, did not adequately explain your PCP contract, or failed to conduct proper affordability checks. PCP claims often involve mis-sold agreements with undisclosed commissions.
If you feel something wasn’t right about how your PCP was sold, you can:
1) Raise a complaint directly with your lender or the dealership
2) If the response doesn’t help, escalate it to the Financial Ombudsman Service
3) Work with a regulated claims management company for support
If you’d prefer guidance throughout the process, Mis-Sold Expert can help you understand your agreement and the options available.
When you ask Mis-sold Expert to review your PCP agreement, you can expect:
Mis-sold Expert has experience handling claims involving major lenders in the motor finance sector, including Hyundai Capital UK, Toyota Financial Services, Clydesdale Financial Services, Lloyds Banking Group, Motonovo, and Blue Motor Finance.
There are no assumptions made about your situation and no guaranteed outcomes.
If a PCP agreement was mis-sold, redress may relate to things like:
The FCA's proposed redress scheme is expected to cover 12.1 million agreements, with an average payout of around £829 per agreement and total costs estimated at £9.1 billion.
The amount varies from person to person. Mis-Sold Expert focuses on helping you understand whether your circumstances.
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Some agreements included commission setups that weren't always made clear at the time. If you had a PCP or HP agreement between April 2007 and November 2024, you may have been affected by one of the following:
The interest rate could be increased, and that increase could boost dealer commissions.
The commission paid may have been disproportionate to the finance agreement.
The broker may have been tied to one lender, rather than comparing options fairly.
Most people find the process reassuring and straightforward:
1) You share your PCP details
2) Mis-Sold Expert reviews the information carefully
3) You receive simple, jargon-free feedback
4) You decide what you’d like to do next
If you’ve had more than one vehicle on PCP or HP, Mis-sold Expert can review each agreement individually. Mis-sold Expert can also review earlier agreements, including those from before 2014, as part of the FCA's consumer redress scheme.
Recent regulatory actions and court decisions have specifically targeted motor finance and motor finance agreements, highlighting the importance of transparency and fair treatment for consumers.
Courts have highlighted the importance of clear, honest communication, particularly where customers relied on the dealer’s advice. Car dealerships and car dealers have a responsibility to ensure every finance deal is transparent and lawful, yet many motor finance complaints arise from failures in this area. Identifying past motor finance agreements is crucial for consumers seeking redress.
Recent Supreme Court decisions have provided useful clarity around car finance agreements and what constitutes fair treatment for consumers. The Court has outlined that lenders and brokers need to ensure finance arrangements are transparent and balanced, particularly regarding what creates an "unfair relationship" under Section 140A of the Consumer Credit Act 1974. This means that if you weren't given complete information about your agreement, faced misleading practices, or were charged fees or interest rates that seem excessive, there may be grounds to question whether your finance arrangement was handled fairly.
These court rulings have also helped clarify how the Financial Ombudsman Service approaches disputes about car finance that may not have been sold appropriately.
The Supreme Court's guidance means consumers now have a clearer understanding of the process for seeking compensation, though outcomes will depend on individual circumstances and the specific details of each case.
Understanding these legal developments can help you consider whether your finance agreement was handled properly and what options might be available to you, though any potential compensation will depend on the particular facts of your situation.
The Financial Ombudsman Service operates as an independent organisation that assists with disputes around car finance mis-selling when direct resolution with your lender or broker hasn't been possible. If you believe your car finance agreement involved mis-selling and your complaint remains unresolved, the FOS provides support at no cost, offering an impartial review of your circumstances.
The FOS examines car finance claims by reviewing the details of your agreement and considering whether the terms were fair based on your individual situation. They can clarify your rights and explain the claims process, helping you understand the options available to you. Using the Financial Ombudsman Service offers an independent assessment of potential mis-selling, though outcomes will depend on the specific details of your case and the evidence available.
Car finance claims are subject to specific time limits that vary depending on your circumstances. Under the Limitation Act 1980, claims can generally be brought within six years from the date your finance agreement was made. This period may be extended in cases where the mis-selling was only discovered later, though this will depend on your individual situation.
The Financial Ombudsman Service operates under separate deadlines for complaints. These allow six years from the original event, or three years from when you first became aware that you could make a complaint. Missing these timeframes may result in your claim being time-barred, which would affect your ability to seek redress.
If you believe your car finance agreement was mis-sold, it may be worth considering your options sooner rather than later. Understanding these time limits can help you make an informed decision about whether to proceed with a claim, based on your individual circumstances and the timeframes that apply to your situation.
If you want simple, reassuring guidance that helps you understand whether your PCP car finance was sold fairly, Mis-sold Expert can help you review your car finance loan, including mis-sold PCP agreements and HP finance, to determine if you are eligible for a claim.
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