PCP Claims: Claim For Mis-Sold Car Finance

Did you purchase a car on finance before 28 January 2021? If so, you could be owed thousands in compensation. Enter your vehicle registration number to see if you are eligible for compensation.
Vehicle Registration Number

PCP Claims: Claim For Mis-Sold Car Finance

Did you purchase a car on finance before 28 January 2021? If so, you could be owed thousands in compensation. Enter your vehicle registration number to see if you are eligible for compensation.
Vehicle Registration Number

With 9 out of 10 UK consumers opting to pay for new and used cars on finance, it’s estimated hundreds of thousands of people could have been mis-sold car finance. If you took out car finance before 28 Jan 2021, you could be eligible for thousands of pounds in compensation.

What are mis-sold car finance PCP claims?

The Financial Conduct Authority (FCA) has recently launched an investigation into hidden commissions charged on finance packages for new and used vehicles before 28 January 2021. It comes amid concerns from consumers that their vehicle finance contract was made more expensive as their dealer stood to earn a hefty commission by charging a higher interest rate.

This practice was known as a ‘discretionary commission arrangement’ (DCA), and saw brokers and car dealers earn hefty commissions by increasing a customer’s interest rate. The higher your interest rate was, the more commission they earned. DCAs were banned in January 2021 by the FCA in a bid to protect consumers, who were often unaware of the commission or that the interest rate they were being given was not a fixed price.

Unfortunately, before the practice was banned, DCAs were relatively common, with as many as 40% of car finance deals affected. This means thousands of vehicle owners across the UK could have been mis-sold car finance, paying far more than they should have been doing over an extended period of time.

At Slater and Gordon, we’re working hard to ensure those who have been affected receive the compensation they deserve. To speak to a member of our specialist car finance team, get in touch today and find out how much you could be owed.

Car finance signature
A parked vehicle

Can I make a car finance claim?

For many people, it can be difficult to know if you’ve been mis-sold car finance. You may have been entirely unaware of the commission hidden in your contract, or the additional costs that may have been associated with your agreement. The FCA has said that you may have been affected by hidden commission if:

  • ​You bought a car under a finance scheme (such as a hire purchase or personal contract purchase) before 28 January 2021
  • ​You have become aware of a discretionary commission arrangement between your lender and broker
  • ​You were not aware of the commission being made to the dealership at the time of purchase
  • ​You were not made aware of the additional costs you could incur through your finance agreements, such as charges and damages

If you have been affected by any or all of the above, or you feel that you were pressured into taking out car finance with your dealership, you could be eligible to claim compensation for mis-sold car finance.

As many as 40% of car finance deals made before 28 January 2021 could have included hidden commissions. Find out if you’re eligible for a mis-sold car finance refund.

Vehicle Registration Number

What are the most common types of mis-sold car finance?

Percentage signs in a row

Undisclosed or hidden commission

As a result of the FCA’s investigation, it has been revealed that as many as 40% of vehicle owners who took out car finance before January 2021 could have unknowingly signed up to agreements including discretionary commission agreements (DCAs). Brokers and lenders have a duty to inform their customers of all fees that form a part of the agreement, which includes any commission payments brokers may receive. If you were not informed, it means you’ve likely been mis-sold car finance and you could be entitled to compensation.

An inflated blimp in the sky

Inflated prices and interest rates

Prior to the FCA banning DCAs in January 2021, some brokers were offered larger commission payments if they signed customers up for loans with higher interest rates. The result was the many people were paying more interest than they should have been, often over a period of many years. This could have left some people out of pocket by thousands of pounds.

A pressure guage

Sales people pressured you into a finance agreement

While hire purchase (HP) and personal contract purchase (PCP) agreements are quite popular options for purchasing a new vehicle, they are not always the right option for everyone. Sales people should fully explain the detail of any agreement that is offered, as well as ensuring you are aware of alternative options and have the opportunity to consider the right solution for you. Unfortunately, this is not always the case, and some people feel pressured into agreeing to a contract that may not be suitable for them. 

A piggy bank with a smiling face

Failure to conduct affordability checks

Credit brokers and lenders have a duty to ensure that the loans they offer are affordable to their customers, and should always carry out affordability checks to prevent anyone taking out a loan that is unsuitable for their circumstances.

Where checks are not carried out properly, customers can find themselves stuck in unaffordable loan agreements for years, causing undue stress and financial issues.

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Finance companies mis-selling car finance

The FCA's investigation is currently underway and is predicted to continue until September 2024.

There are a number of finance companies and lenders suspected of mis-selling car finance.

If you have previously financed your vehicle and you believe you have been mis-sold an agreement for the non-disclosure of commissions received by the dealership, or you were inadequately informed of the hidden costs and interest rates, you could be eligible to receive compensation. It is worth getting in touch and finding out if you're eligible.

We are happy to take on all complaints relating to vans, caravans, motorbikes, boats, planes or any other motor vehicle but please note that the ongoing FCA investigation is in relation to cars only. The other categories of motor vehicle complaints will be explored with the Regulator moving forwards.

Think you have been mis-sold on your car finance agreement? Check your eligibility now for a refund.

Vehicle Registration Number

The process of claiming compensation for mis-sold car finance

It can seem like a daunting undertaking to start a claims process for mis-sold car finance, especially if you believe that you could have been mis-sold more than one car before January 2021. However, it doesn’t need to be complicated.

At Slater and Gordon, we’re working hard to ensure that everyone affected by the mis-sold car finance scandal has the opportunity to claim the compensation they deserve, without the headache. We make the process straight-forward – simply enter your registration number to find out if you’re eligible. We’ll let you know whether you’ve been mis-sold car finance, and begin negotiations for your refund with your lender.  

A woman using her mobile smart phone
A woman making a calculation with a calculator at her desk

How is the amount of compensation calculated

The amount of compensation you receive for your mis-sold car finance will be dependent on a number of different factors, including:

  • ​The difference in the interest rate you should have been charged, and the one you ultimately were
  • ​How long you’ve been making re-payments on your loan (as this will determine how much money you’ve put into the loan to date)
  • ​The value of the loan you took out (the higher the value, the more interest you will have been charged)

For some, this could amount of thousands of pounds. It’s also worth remembering that if you’ve taken out multiple finance agreements before 28 January 2021, you could be eligible to make more than one claim.

Why choose Slater and Gordon for your car finance claim?

If you’re looking to make a car finance claim for compensation, our experts are here to help. Slater and Gordon was the chosen law firm representing the majority of claimants in the recent £193 million VW settlement in England and Wales. You can be rest assured that your claim is in safe hands with our collective action specialists.

At Slater and Gordon, we know that banks and financial institutions are not above the law. By joining our car finance group action, you’ll have the chance to hold these large corporations accountable for their actions. Check to see if you are eligible to make a claim here.

The front of a Slater + Gordon Lawyers office

Did You Purchase a Car on Finance Before January 2021? Find out if you qualify to claim.

Vehicle Registration Number

What are the most common types of mis-sold car finance?

Personal contract purchase (PCP)

A PCP is a popular way of financing a car. Taking out a car on a PCP finance agreement means that you typically pay a deposit up front and then a monthly fee for the car for an agreed number of years. Towards the end of the deal there is the ability to either give the car back for no extra cost or you can pay a substantial lump sum which enables you to keep the car, or you can put the value towards a different car with the same dealership.

Hire purchase agreement (HP)

HP is another way to finance a car. Ordinarily you will pay a deposit, then pay a set amount each month until the loan for the value of the car is paid off in full. With HP, you will own the car once you have made all of the required loan payments.

A pressure guage

What is the process?

There are a number of options available to you to make a mis-sold car finance claim. You can self-represent and approach the lender directly, go to the Financial Ombudsman Service (FOS), OR you can submit a claim with us and we'll do all the legwork for you.

Slater and Gordon operates on a No-win-No-fee basis. This means it costs you nothing upfront to join. If your claim is successful, we'll take a pre-agreed percentage as our fee. If we do not win your claim, you won't owe us a penny.

Frequently Asked Questions

Am I eligible to make a car finance claim?

Only people who took out finance on a vehicle between 2010 and 2021 are able to make a claim. To find out if your vehicle may have been affected, enter your registration number above.

Are all types of vehicle financing eligible to make a claim?

You should be eligible if:

   •    your car finance was a personal contract purchase (PCP) (which is a bit like a loan to help you buy the car); or
   •    a hire purchase agreement (which is where you pay off the value of the car in monthly instalments).

You probably won’t be eligible if you were just leasing a vehicle.

How do I sign up to make a car finance claim?

All we need you to do to be included within our claim is fill out the information shown at the top of this page. We’ll do the rest for you. 

Is it likely we’ll win?

We believe that there is a high likelihood many people will be paid out for this claim, otherwise we would not choose to pursue the claim.

How much compensation will I get?

The amount of compensation you receive will depend on several factors including the amount of finance taken out and the interest rates charged. However, Slater and Gordon will work tirelessly to ensure you get the compensation you deserve. 

Am I affected by the car finance scandal?

If you took finance out to purchase a car between 2010 and 2021, you may be eligible to make a claim. 

Is it hard to register a claim?

No – Slater and Gordon are experts, so we do the hard work for you. Simply fill out your information in the forms above and we’ll contact you if you need to do anything else. 

Can I claim for multiple finance agreements?

Yes, you can register as many finance agreements as you took out from 2010 to 2021. 

How long will the claim take?

The length of time it takes to finalise a claim can vary. However, we’ll work hard to ensure you get the compensation you deserve and will keep you updated throughout the process. 

How much will I be charged?

We operate on a no win-no fee basis which means there is nothing for you to pay if you aren’t successful in the claim. If you are successful, we’ll take a pre-agreed percentage as our fee. 

Why choose Slater and Gordon?

Slater and Gordon’s specialist collective actions team are experts in this field. We recently helped more than 70,000 claimants in England and Wales to secure a settlement payment of £193 million winning more compensation than any other law firm in the UK.  


UK car finance: ‘millions of drivers could get payout’ as watchdog investigates
Car finance misconduct probe could lead to compensation payouts

   Sky News
Watchdog to investigate compensation over car loans



To contact Slater & Gordon UK please use the details below

0330 107 6472

Did You Purchase a Car on Finance Before January 2021? Find out if you qualify to claim.

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Slater and Gordon UK Limited is a company registered in England and Wales with registration number 07931918, VAT 125 446 327 and registered office First Floor, Lee House, 90 Great Bridgewater Street, Manchester M1 5JW. We are an approved Alternative Business Structure authorised and regulated by the Solicitors Regulation Authority (SRA number: 591058) and authorised and regulated by the Financial Conduct Authority for insurance mediation activity (FCA number: 579176)