Personal Contract Purchase (PCP) is a popular way to finance cars in the UK. It allows buyers to pay lower monthly instalments while deferring a large final payment. However, many agreements were mis-sold, leading consumers to claim compensation for unfair terms and hidden costs.
How Do You Know If You Have a Valid PCP Claim?
If a lender failed to explain the total cost, balloon payment, or interest rates, you may have a claim. Many drivers were not informed about commission structures between lenders and dealerships, which could impact affordability. Misleading sales tactics are a common reason for PCP compensation claims.
What Compensation Can You Receive?
Successful claims can result in refunds for overpaid interest, commissions, or even a write-off of remaining payments. The amount depends on the lender’s misconduct and the financial impact on the consumer. Some claimants receive thousands in compensation due to mis-sold PCP agreements.
Steps to Making a PCP Claim
- Gather Your Agreement Details – Find your PCP contract, loan agreement, and any relevant communication.
- Check for Mis-Selling Signs – Were hidden commissions or affordability checks skipped?
- Contact the Lender – Request clarification on terms and dispute any misleading elements.
- Use a Claims Specialist – Professional firms help navigate the claims process efficiently.
- Escalate to the Financial Ombudsman – If the lender refuses to compensate, escalate your complaint.
How Long Does a PCP Claim Take?
On average, claims take three to six months to process. The speed depends on lender cooperation and the complexity of the case. The Financial Ombudsman may take longer if the claim requires further investigation.
Can You Calculate Your PCP Claim?
Consumers can estimate potential refunds using a PCP claims calculator, which considers interest rates, commissions, and payments made. These tools provide a rough estimate of what you might recover before submitting a claim.
Are There Any Deadlines for PCP Claims?
Most claims must be made within six years of the agreement start date or three years from discovering mis-selling. Acting quickly ensures you don’t miss the opportunity to recover funds.
Final Thoughts
PCP claims are rising as more consumers realise they were mis-sold finance agreements. If you believe you were misled, start the claims process now to secure potential compensation. Seeking expert advice can improve your chances of a successful outcome.
