Millions of UK drivers who bought a car on PCP or HP finance between 2007 and 2024 may have been overcharged through hidden dealer commissions they were never told about. If that sounds familiar, you are not alone. The scale of mis-sold car finance claims across the UK is enormous, with the FCA estimating that around 14 million agreements could be affected.
But understanding how the PCP claim process works can feel confusing, especially with the FCA redress scheme, court rulings, and regulatory timelines all in play. This guide breaks everything down into plain English so you know exactly what to expect at each stage, whether you handle your claim independently or use an FCA-authorised PCP claim service.
Why Do PCP Claims Exist?
When you bought a car on finance, the dealership that arranged your agreement typically received a commission payment from the lender. In many cases, this commission was never disclosed to you. Worse still, under Discretionary Commission Arrangements (DCAs), the dealer was able to increase the interest rate on your agreement to earn a higher commission. The more interest you paid, the more the dealer earned.
The FCA banned DCAs in January 2021 after finding that they led to widespread consumer harm. In a 2019 review, the regulator confirmed that a typical DCA on a £10,000 finance agreement added approximately £1,100 in extra charges over a four-year term. This practice of hidden commission is the central reason PCP claims exist today.
In October 2024, the Court of Appeal ruled in Johnson v FirstRand Bank Ltd that motor finance brokers owe customers a fiduciary duty. The Supreme Court upheld the core principles of that ruling on 1 August 2025, strengthening the legal basis for claims. You can follow every development on our FCA car finance investigation page.
How the PCP Claim Process Works: Step by Step
Whether you claim directly through your lender or use a PCP claim service, the process follows a similar path. Here is how it works when you claim through PCP Missold.
Step 1: Submit Your Details
The claim process PCP starts with a short online form. You provide your name, contact details, and current address. That is all we need to get started. No paperwork is required at this stage. The form takes under two minutes to complete. See our how it works page for a full walkthrough.
Step 2: We Locate Your Agreements
Once your form is submitted, our team runs a soft credit check to identify any PCP or HP finance agreements linked to your name. This check does not affect your credit score. We can locate agreements going back to 2007, even if you no longer have the original paperwork or have changed address since taking out the finance.
Step 3: Your Agreements Are Reviewed
Our specialists examine each agreement for evidence of mis-selling. This includes checking for undisclosed commission payments, inflated interest rates, and whether the terms and risks of the agreement were properly explained before you signed. If you are unsure whether your agreement qualifies, our guide on how to check if you have a valid PCP claim explains the key criteria.
Step 4: A Formal Complaint Is Submitted
If evidence of mis-selling is found, we submit a formal complaint to your lender on your behalf. This complaint sets out the grounds for your claim, citing the specific commission arrangements, the lack of disclosure, and the financial impact on you. We handle all correspondence with the lender directly. We claim against all major UK motor finance providers. See the full list of lenders we claim against.
Step 5: The Lender Investigates
The lender reviews the complaint and either accepts it, offers compensation, or rejects it. Under normal circumstances, lenders have eight weeks to issue a final response. However, the FCA has currently paused the requirement for lenders to respond to DCA-related complaints until 31 May 2026, while the motor finance redress scheme is finalised.
Step 6: Escalation if Needed
If the lender rejects your complaint or you are unhappy with the offer, your claim can be escalated to the Financial Ombudsman Service (FOS). The FOS is an independent body that reviews complaints at no cost to you. Its decisions are binding on the lender.
Step 7: You Get Paid
Once your claim is successful, compensation is paid directly to you, minus any agreed fees. On a No Win, No Fee basis, you pay nothing if the claim is unsuccessful. It really is that straightforward.
What Affects How Long a PCP Claim Takes?
The timeline for the PCP claim process depends on several factors. The lender involved, the complexity of the agreement, and the current regulatory landscape all play a role.
As of March 2026, the FCA is expected to announce the final rules for its motor finance redress scheme in late March. Once the scheme launches, lenders will have an implementation period of up to three months (or five months for older agreements) to set up their redress processes. Consumers who have already complained will then be told of any redress they are owed within three months of that implementation period ending. For a full breakdown of every milestone, visit our FCA investigation full timeline.
How Much Compensation Could You Receive?
The amount you could receive depends on the size of your finance agreement, the interest rate you were charged, the value of the hidden commission, and the length of the agreement.
The FCA's current estimate is that most consumers will receive around £700 per agreement under the proposed redress scheme. However, some claims may be worth significantly more, particularly where multiple agreements are involved or where the commission was especially large. Our detailed guide on how much compensation you could receive explains the key factors.
Signs Your Agreement Was Mis-Sold
Not sure whether your car finance was mis-sold? Here are the most common indicators:
- You were not told that the dealer earned a commission from your agreement
- The interest rate on your agreement seems higher than you expected
- The dealer did not explain alternative finance options or let you compare rates
- You felt pressured into signing the agreement at the dealership
- The total cost of the agreement was not clearly broken down
If any of these sound familiar, you may have grounds for a claim. Read our full guide to PCP mis-selling red flags for more detail.
Why Use an FCA-Authorised PCP Claim Service?
You can submit a claim directly to your lender or the Financial Ombudsman Service yourself, at no cost. Many people prefer to use an FCA-authorised PCP claim service because the process involves specialist knowledge of commission structures, FCA regulations, and lender negotiation.
PCP Missold Ltd is authorised and regulated by the Financial Conduct Authority (FRN 1037114). We handle every stage of your claim, from locating your agreements to negotiating your settlement. Our service runs on a 100% No Win, No Fee basis, which means you only pay if your claim succeeds.
Start your free claim today. It takes less than two minutes.
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