PCP Claims Template Letter

Tom Riley • 22 April 2025

Free PCP Claim Letter Template

If you had car finance before 28 January 2021, you may have been charged more than you should’ve paid — without ever being told. Use this free letter to start your claim and ask your lender if a hidden commission was involved in your agreement.

You don’t need a solicitor or claims firm to send this — it’s free, simple, and can be emailed or posted directly to your finance provider.

Which lenders have been named in past claims?

Here are just a few finance companies that have faced scrutiny for mis-selling or commission-related complaints:

(Note: Listing here does not confirm wrongdoing. Based on complaints, rulings, and investigations as of 2025.)

What is a discretionary commission arrangement (DCA)?

DCAs allowed dealers or brokers to increase your interest rate without your knowledge — in return for extra commission from the lender. You paid more, they earned more. This practice was banned in 2021, but thousands of older agreements still contain these unfair terms.

Why should I send a letter?

If you were affected, you could be owed money back. Refunds often range from £1,000 to over £5,000 — especially if your loan involved higher interest or a large vehicle value. Sending this letter is the first step to getting answers, and potentially compensation.

Reminder: The FCA is reviewing past complaints and may introduce automatic refunds. Sending your letter now helps register your interest, especially if your contact details have changed since you took out the finance.

When should I use this template?

  • If your car finance started before 28 January 2021
  • If you're unsure whether commission was added
  • If you want to raise a formal complaint to protect your position

How to use the letter

Copy the text below into an email or document, fill in your details, and send it to your lender’s complaints team. Their address is usually listed on their website.

Dear [Finance Company Name], I’m writing regarding a car finance agreement I took out with you. I’ve recently learned about the use of discretionary commission arrangements (DCAs), and I want to understand whether this applied to my case. Please confirm the following: 1. Did my finance agreement involve a discretionary commission arrangement (where the dealer or broker could influence the interest rate)? 2. If so, I would like you to treat this message as a formal complaint. I believe I was not made aware of this commission, and it may have resulted in me paying more than necessary. For your reference, here are the details you may need to locate my agreement: Full name: [INSERT YOUR FULL NAME] Date of birth: [DD/MM/YYYY] Current address: [YOUR CURRENT ADDRESS] Vehicle registration: [VEHICLE NUMBER PLATE] Where and when I took out the finance: [DEALER OR PROVIDER NAME + APPROXIMATE DATE] Please confirm receipt of this email within 30 days, and let me know if you need anything further to investigate. Kind regards, [YOUR NAME]
Download Letter

Need help?

For more guides, updates, or to check your eligibility online, visit: carfinanceclaimsuk.com

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