In 2025, we’ll see the courts finally decide if motorists are due compensation.
Banks and lenders are bracing themselves for billion-pound payouts. Could you make a claim?
My Claim Group help car owners claim what they deserveCheck if you could claim for mis-sold car finance below
MY CLAIM GROUPIf you bought a car on PCP finance between 2007-21, there’s a high chance you could have been mis-sold.
It’s vital that you make a mis-sold car finance claim to ensure you receive a speedy settlement.
How can you get a PCP payout? We’re going to provide a step-by-step breakdown of how you can make a PCP mis-selling claim on your own or with the expert help of talkSPORT’s trusted partner, MyClaimGroup.
What is PCP car financing and how was it mis-sold?
For almost 15 years, some car dealers and finance providers were working together to increase the interest rates drivers were paying for PCP finance.
The practice, known as discretionary commission arrangements (DCAs), saw dealers paid more commission for arranging PCP finance with higher rates without telling the customer.
The practice was discovered by the Financial Conduct Authority (FCA) in 2021 and was immediately banned. Over the 15 years it was in place, millions of motorists could have paid thousands more than they should, says the MoneySavingExpert.
The good news is, the FCA is acting quickly.
In 2025, we’re going to see the court hand down a final judgement with lenders already getting ready for billions of pounds in claims.
Want to see how you can claim compensation? Follow our step-by-step guide below.
How will I know if I was mis-sold PCP?
It’s impossible for us to say yes or no, but we can help you find an answer.
Did you buy a car with PCP finance at some point between 2007 and 2021?
Several car dealerships mis-sold PCP car finance in the pastCheck if you could claim for mis-sold car finance below
MY CLAIM GROUPPCP mis-selling claims only cover this period. As soon as the FCA became aware of the practice of paying commission to dealers, it outlawed it.
Also, not all finance providers paid DCA or were involved in PCP misselling or other dodgy practices.
If you’ve had a PCP finance agreement, you have two options: you can find all the details of your lender directly and raise a complaint with them, or you can use a Claim Management Company like MyClaimGroup that can process everything on your behalf, including finding old finance agreements and confirming eligibility.
Don’t worry, we’re going to walk you through each option below.
Step-by-step guide to making a PCP mis-selling claim
Start here if you want to make a PCP mis-selling claim.
Step #1: Confirm you’re eligible to make a claim
Did you buy a car on PCP finance between 2007–2021? If you answered yes, then you could make a claim.
Not all PCP providers offer DCA incentives to dealers, so there’s no guarantees you’ll be able to make a claim. (There are so many PCP providers it’s impossible for us to provide a complete list)
You might need to wade through your old emails or finance paperwork to find the details.
Alternatively, if you have access to your credit history online, you can search through your old financial agreements to see if you can find information on your PCP provider.
The finance provider should get back in touch with you within 8 weeks, they should get back in touch within 8 weeks, the FCA says.
Due to the increasing number of claims, the date for a final response has been delayed until 4 December. (You can find more information on what to do on the FCA site.)
Do you know who your lender was? If you do, go straight to Step #2. If you don’t, go to Step #3.
Step #2: Want to do it yourself? You can
If you know who your lender was, you can contact them directly to raise a claim.
You’ll find some guidance on how to raise a PCP claim on the MoneySavingExpert website. It’s not an easy process and you’ll need to know a lot of details before you do.
Don’t worry if you don’t have that information, there’s another way which we’ll detail in Step #3.
Step #3: Sign up with a DCA claim company
The easiest way to submit a DCA claim is to sign-up with a PCP mis-selling claims provider who can manage the entire process.
You’ll need to provide some basic personal information about you and your address history.
The claims provider can save you the time and hassle of searching for old PCP agreements and do it for you.
They’ll be able to check out whether any of your PCP contracts was with a company who paid DCA.
This is typically done on a no-win, no-fee basis***, with one of My Claim Group’s partner law firms taking a percentage of any successful claim. All the figures should be made clear to you before you sign on the (digital) dotted line.
Check if you could claim for mis-sold car finance below
MY CLAIM GROUPStep #4: Agree for a company to act on your behalf
If you’re eligible to make a PCP mis-selling claim it’s vital that you only sign up with one provider.
Why? Because multiple claims could cause confusion, which may see your claim left at the back of what looks like a very long queue.
Step #5: Sit back and wait
The PCP mis-selling scandal is national news, with the Court of Appeal due to hand down a final judgement at some point this year.
If you are due compensation, My Claim Group will manage the process for you. You’ll learn whether you’ve been successful in making a claim and the amount you will receive.
Lawyers can be fast, but they don’t act for free. You’ll also be able to see the percentage of any claim that they will take.
PCP mis-selling FAQs
Here are some answers to PCP mis-selling questions…
What is the latest information on the Supreme Court appeal against the FCA’s decision?
The Supreme Court appeal against the FCA ruling was heard between 1-3 April. They’ll make a ruling at some point this year.
Six weeks after the ruling, the FCA plans to outline next steps. This could – and probably will – include a potential redress scheme.
Most finance experts believe that there’s a very strong chance that banks and lenders will need to pay out billions in PCP compensation.
Which brands of car could have been affected by mis-selling?
The PCP mis-selling scandal wasn’t about a make or model of car, it’s the finance agreement that was sold and how it was sold.
We can’t provide a complete list of finance providers that were and weren’t involved. We recommend that if you bought a car with a PCP agreement between 2007 and 2021, you dig out your old finance agreements and get in touch with your provider, or contact MyClaimGroup.
How much compensation are consumers likely to receive?
The FCA has calculated that on a typical motor finance agreement of £10,000,could lead to the customer incurring approximately £1,100 more in interest charges over the four-year duration of the agreement.The total amount of compensation you could be owed depends on a range of factors, including total purchase price and interest rate, so we can’t provide a definitive figure.
You can make a claim for each mis-sold PCP agreement. If you had more than one, you could be in line for an even bigger payout.
Check if you could claim for mis-sold car finance below
MY CLAIM GROUPMy Claim Group is a trading name of the Claims Protection Agency Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 836470). *My Claim Group will undertake a free check at no cost to you on your behalf to assess if you may have a vehicle finance claim. *** If you proceed, our panel solicitors work on a no win, no fee basis (subject to exclusions, for full details click on: myclaimgroup.co.uk/no-win-no-fee). Solicitor fees are up to 36% inc VAT. We receive a fee after a successful payout or a referral fee from your solicitor and this does not affect the compensation you will receive. You do not need to use a claims management company to make a claim; you can do this yourself for free by contacting the car dealership or finance provider and if that is not successful you can complain to the Financial Ombudsman Service. **See link for the FCA reference, solicitor fee tables & average valuations: myclaimgroup.co.uk/dca
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