PCP Claims: Who Can Claim on PCP Car Finance

What is a PCP claim?

A PCP claim is a car finance claim on a personal contract purchase agreement. A PCP has three parts: a deposit, monthly payments and an optional final payment at the end, often called the balloon payment. At the end you pay the final payment and keep the car, hand the car back, or part-exchange it for another one.

The claim is about the commission the lender paid your dealer, not about the car or the PCP's design. PCP mis-selling follows the same scheme test as other car finance claims: a mis-sold PCP is one where a discretionary commission arrangement, high commission or a tie was not properly disclosed to you. PCP and hire purchase claims follow identical rules, and the HP finance claim page covers HP and conditional sale.

Personal contract hire (PCH) looks similar to a PCP but is a lease, not credit, so the scheme excludes it. The title of your agreement says which one you had.

Which PCP deals count?

A PCP deal counts when it started between 6 April 2007 and 1 November 2024 and the lender paid the dealer commission through an arrangement you were not properly told about. The scope has four conditions:

• Date: agreements from 6 April 2007 to 31 March 2014 fall under Scheme 1 (CONRED 6); agreements from 1 April 2014 to 1 November 2024 fall under Scheme 2 (CONRED 5).
• Commission: commission was payable to the dealer or broker, even where it was never paid in the end (FCA).
• Vehicle: a car, van, motorbike, campervan or other motor vehicle.
• Borrower: you, a sole trader or a partnership of 2 or 3 people, living in the UK when the PCP started.

The three arrangements are a discretionary commission arrangement (DCA), high commission and a tie. A DCA let the dealer set your rate and earn more for a higher one. High commission means at least 39% of the total charge for credit and 10% of the amount borrowed, and a tie gave one lender exclusivity or first refusal. Discretionary commission arrangements in car finance explains each one.

A PCP gets nothing with commission of £150 or less (£120 before 1 April 2014) or an APR of 0% (CONRED 5.2.19R). The car finance claim checker runs the scope questions against your own paperwork.

What does a PCP claim pay back?

A PCP claim pays back the same way as any car finance claim: usually the average of your commission plus interest and the extra interest you paid, cut to the lowest of three caps. Very high commission works differently: the lender repays all of it plus interest, with no caps. That applies where commission was at least 50% of the total charge for credit and 22.5% of the amount borrowed, with a DCA or a tie. Under the hybrid remedy, an APR in the lowest 5% for its year gets nothing.

The FCA's average is £829 per agreement across every finance type in the scheme. Some agreements get more, some less and some nothing, and about 1 in 3 results are capped (FCA). People call the money a PCP refund or PCP compensation: it is car finance compensation linked to commission and interest, not a refund of the car's price or your monthly payments. How much compensation for mis-sold car finance explains the average and the method.

The PCP detail sits in the overcharge part. Lenders work it out from your payment schedule, in this order (CONRED 5.4.10R; FCA, August 2026):

1. 1
   your actual payments, where you settled early and the lender's records are complete;
2. 2
   the payment schedule in your agreement, where the lender holds it in full;
3. 3
   a schedule rebuilt from the amount borrowed, the APR and the term.

Does it matter how your PCP ended?

No. The scheme looks at the agreement and its commission, so a PCP still counts whether you paid the final payment, handed the car back, settled early or part-exchanged it. The FCA says an agreement stays in the scheme where commission was paid, even after early settlement, voluntary termination or repossession (FCA further information for firms, August 2026, 7.5). How it ended changes the figures, not the claim.

You paid the final payment and kept the car

Your claim is unaffected: the agreement ran its full term, which is what our calculator assumes. Include the optional final payment in the total you paid when the calculator asks for it, because that total sets the third cap.

You handed the car back

Handing the car back at the end, or ending the PCP early by voluntary termination, does not stop a claim. The lender cannot take a shortfall out of your compensation where voluntary termination left you owing nothing more on the agreement. Charges you still owe under the agreement, such as excess mileage, damage or missed payments, can be set off against it (FCA further information for firms, 7.30 to 7.32).

You settled the PCP early

An early settlement still counts, and it can lower the overcharge part of the claim. Lenders use your actual payments, or the early settlement figure, where they hold the records. Commission repayment cases ignore early settlement altogether (FCA further information for firms, 7.8). Our calculator works the agreement out as if it ran its full term, so its estimate can be too high for a PCP you settled early.

You part-exchanged it for another car

A part exchange settles the old PCP early, so the old agreement keeps its own claim and any new finance deal is a separate claim. Each agreement is assessed on its own dates and figures, under its own scheme. List both agreements in your complaint and estimate each one.

The car was repossessed or you fell behind

A repossessed PCP still counts where commission was paid, but the lender can take unpaid arrears on that agreement out of your compensation. You can object where the arrears are disputed or where the deduction leaves priority debts unpaid (CONRED 5.4.24R to 5.4.26R).

How do you make a PCP claim for free?

Complain to the lender named on your PCP agreement, not the dealer: it costs nothing, and the FCA says you do not need a claims company or a law firm. The free route has three steps:

1. 1
   Find your lender on the FCA's list of lenders, which gives contact details and a template complaint letter.
2. 2
   Send the complaint, or reply within 6 months if the lender writes to invite you into the scheme.
3. 3
   Accept or challenge the lender's decision within 1 month, and take a disputed decision to the Financial Ombudsman Service for free.

How to claim mis-sold car finance yourself, for free covers each step in detail. Car finance claims by lender links to the free complaint routes of 8 lenders, including Black Horse, BMW and Volkswagen Financial Services. A claims company or law firm can make the complaint for a fee of up to 36% of your compensation, including VAT, the FCA says. Car finance solicitors and claims companies sets out the caps.

PCP claim questions

Four more questions PCP borrowers ask, answered from the FCA's rules and statements as of 13 October 2026.