Car Finance Claims UK

A PCP claim is a legal route for drivers to recover money lost through mis-sold car finance deals.

Many drivers were placed into unfair Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements without full transparency. From undisclosed commissions to unclear balloon payments, thousands of UK motorists have been left out of pocket.

If the lender or dealership didn’t properly explain the terms or ran poor affordability checks, you may be entitled to compensation. Claims often relate to agreements made between 2007 and 2021.

Which Car Finance Companies are involved?

Dozens of Finance Firms Are Now Under Review If you financed your vehicle through any of the following companies, you may be owed compensation:

✅ MotoNovo Finance
✅ Black Horse Finance
✅ Admiral Finance
✅ First Response Finance
✅ Close Brothers Finance
✅ Oodle Car Finance
✅ BMW Finance
✅ Audi Finance
✅ Renault Finance
✅ Suzuki Finance
✅ Moneybarn
✅ RCI Finance (Nissan)
✅ Fiat Finance
✅ Skoda Finance Services
✅ Volkswagen Finance

Are You Due a Refund?

Common reasons why millions of drivers may be eligible for compensation:

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Interest Rates Inflated

Car Dealers set higher rates to boost commission, costing you more over the term of your PCP agreement.

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Hidden Commissions

Car finance brokers often failed to disclose commission payments, and therefore breaching transparency rules on finance deals.

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Limited Finance Options

Many drivers were only offered PCP plans that benefited the dealership rather than providing fair alternatives.

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No Clear Explanation

Important information about car finance products was often not properly explained before signing agreements.

Dealerships Quietly Increased Costs

Between 2007 and 2021, many car dealers inflated interest rates to secure hidden commissions — costing UK drivers over £1,000 more on average without their knowledge.

FCA Bans Commission-Based Rate Setting

In January 2021, the Financial Conduct Authority banned discretionary commissions, helping to clean up the car finance industry and protect future borrowers.

Court Confirms Mis-Selling Breached Law

In a landmark decision in October 2024, the Court of Appeal ruled that many finance deals with hidden commission structures were unlawful under UK consumer law.

Regulator Launches Nationwide Investigation

In early 2024, the FCA began a wide-ranging review of car finance agreements stretching back 14 years — focusing on mis-selling across PCP and HP contracts.

Supreme Court to Rule on Automatic Refunds

The UK Supreme Court will soon decide whether affected drivers should receive refunds automatically, without having to file individual claims.

Thousands of Complaints Logged Already

By mid-2024, the Financial Ombudsman Service reported over 20,000 open car finance mis-selling complaints — and the numbers keep rising.

Lender Payouts Could Top £10 Billion

Industry analysts now estimate that refunds for mis-sold car finance could cost lenders between £8 billion and £13 billion — rivaling PPI claims in scale.

Average Refund Now Tops £1,100

While most successful claims return around £1,100, drivers with premium finance agreements have recovered over £5,000 to £10,000 in refunds.

Automatic Redress Scheme Incoming

The FCA is preparing to introduce automatic redress for affected borrowers — a move that could fast-track refunds without drawn-out claims processes.

Major Banks Already Setting Aside Funds

With legal pressure mounting, major banks and finance groups are already allocating billions in preparation for one of the UK’s largest compensation schemes to date.

Frequently Asked Questions

How can I tell if my car finance deal was mis-sold?

You may have been mis-sold if the dealership or broker didn’t explain key details like hidden commissions, interest rates, or balloon payments properly. If you weren’t offered alternative options or struggled with affordability from the start, it’s worth checking your agreement.

Who is eligible to make a PCP or HP claim?

Anyone who financed a vehicle before 2021 through a PCP or HP deal — and wasn’t fully informed about commissions, borrowing costs, or alternatives — could be eligible for a refund. It doesn’t matter if the agreement is finished or still ongoing.

What documents should I collect to support my claim?

It helps to have your original finance agreement, payment schedules, any dealership correspondence, and the terms and conditions. But even if you don’t have paperwork, we can often retrieve what’s needed directly from the lender.

Will making a PCP claim affect my credit rating?

No, your credit score will not be affected. Making a claim is about seeking compensation for an unfair agreement — it doesn't involve new credit checks or changes to your borrowing history.

How long does it take to settle a car finance claim?

Most claims are resolved between 6 and 12 weeks. Some can take longer, especially if the finance company contests the claim or if it needs to be reviewed by the Financial Ombudsman Service.

What action is the FCA taking on mis-sold car finance?

The FCA launched a major investigation in 2024 to review historic PCP and HP agreements. Depending on the outcome of a 2025 Supreme Court ruling, automatic refunds could soon be introduced for thousands of mis-sold customers.

Can I still claim if I no longer have my finance paperwork?

Yes. You don't need every document to start a claim. As long as you know the name of the lender and roughly when you signed the agreement, we can usually recover the necessary paperwork for you.

Is it possible to claim for more than one finance agreement?

Absolutely. If you had more than one PCP or HP deal that was mis-sold — even with different dealerships or finance companies — you can submit a separate claim for each agreement.

CAR FINANCE CLAIMS UK

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What is a PCP Claim?

Claiming is Easy as 1, 2, 3

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1. Start Your Free Check

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2. We Build Your Case

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3. Get Your Compensation

How much can I reclaim?