Personal Contract Purchase (PCP) agreements have become a preferred way for UK drivers to finance new and used vehicles. While they offer flexible repayment terms and vehicle upgrade options, some deals have been mis-sold—leaving many car buyers eligible to file PCP claims for compensation.
What Are PCP Agreements?
PCP (Personal Contract Purchase) allows you to drive a car by paying a deposit and monthly instalments over a fixed period. At the end of the term, you can return the car, exchange it, or pay a final balloon payment to own it. Although PCP offers affordability and flexibility, many consumers enter these agreements without understanding the full terms—making them potential candidates for PCP claims.
How Do You Know If Your PCP Was Mis-Sold?
Thousands of drivers are now questioning the fairness and transparency of their car finance agreements. You may be eligible to make PCP claims if:
- Commission was hidden: If a dealer or broker received a commission that wasn’t disclosed to you, this could have influenced the deal you were offered.
- Lack of explanation: If the terms of the agreement—like balloon payments, interest rates, or mileage limits—weren’t properly explained, that’s a red flag.
- Unsuitable product: If the finance package didn’t match your financial situation or needs, you might have been mis-sold.
- Unfair interest rates: Some consumers paid inflated interest rates compared to what they were originally quoted.
Any of these issues could be grounds for legitimate PCP claims.
Who Can Make PCP Claims?
You may be entitled to file PCP claims if the following apply:
- Your agreement started within the last six years, or you became aware of the mis-selling within the past three.
- You weren’t given the full details of how the deal worked, including any commission or interest rate details.
- You experienced financial loss due to undisclosed or unfair terms.
Even if you no longer have the car, you could still be entitled to compensation through PCP claims.
What Compensation Can You Expect?
Successful PCP claims could result in:
- Reimbursement of overpaid interest or fees
- Reduction of outstanding balances
- Compensation for financial stress or hardship
This could make a significant difference in your finances, especially if you’re still paying off your car loan.
How to File a PCP Claim
If you believe you’ve been affected, here’s how to get started with PCP claims:
- Check your paperwork: Review your agreement for missing or misleading details.
- Gather evidence: Save emails, messages, and finance documents that support your case.
- Raise a complaint: Contact your finance provider with a formal complaint.
- Seek expert help: If your provider doesn’t resolve it, a solicitor or claims specialist can help manage your PCP claims.
- Contact the Financial Ombudsman: For unresolved complaints, escalate the issue for independent review.
Final Thoughts
If you entered into a car finance deal without full transparency, you might have a valid case for PCP claims by Legal Assist. Don’t ignore the signs of a mis-sold agreement. By acting early and seeking advice, you can recover money you’re rightfully owed. As more consumers come forward, PCP claims are becoming a crucial route to financial fairness in the motor finance industry.
