If you’ve taken out a Personal Contract Purchase (PCP) finance agreement, you might be entitled to a refund. Many UK drivers have been mis-sold PCP deals due to unfair commission structures, hidden fees, or unclear terms. With lenders under scrutiny, thousands are claiming compensation for being overcharged.
How Does PCP Compensation Work?
PCP agreements have been the go-to option for car financing, but not all deals are fair. The Financial Conduct Authority (FCA) has been investigating car finance agreements, especially cases where dealers failed to disclose commissions. If your lender didn’t clearly explain how interest rates were set, you may have paid more than necessary.
Refunds are based on overpaid interest, additional fees, and compensation for unfair lending practices. If you suspect mis-selling, you can calculate potential compensation and start your claim.
Who Can Claim a PCP Refund?
Not every PCP deal qualifies for a refund, but you may be eligible if:
- You were not told that the lender paid commission to the dealership.
- Your monthly payments were higher due to undisclosed commission.
- The lender increased interest rates to benefit the dealer financially.
- You felt pressured into signing a finance deal without full transparency.
Even if you’ve already settled your PCP agreement, you might still claim compensation. Past mis-sold finance agreements could still be eligible for a refund under consumer protection laws.
How Much Compensation Can You Get?
The amount of compensation varies based on the agreement details. However, claims typically cover:
- Refund of overpaid interest (often thousands of pounds).
- Compensation for financial loss caused by misleading information.
- Possible adjustments to existing agreements if they are still active.
Average claims range between £1,000 and £5,000, but higher payouts are possible depending on the amount borrowed and the interest overpaid. Using a PCP refund calculator can help you estimate what you’re owed.
Step-by-Step Guide to Using a PCP Refund Calculator
- Gather Your Finance Agreement – Find your PCP contract, including the interest rate, loan amount, and monthly payments.
- Enter Key Details – Input figures such as loan term, interest charged, and total repayments made.
- Get an Estimate – The calculator will provide an approximate refund amount based on FCA guidelines.
- Start Your Claim – If eligible, submit your complaint to the lender or seek legal assistance.
What to Do If Your PCP Claim Is Rejected?
If your lender refuses to refund your overpaid charges, don’t give up. You can escalate your complaint to the Financial Ombudsman Service (FOS). They handle disputes between consumers and financial firms, ensuring fair treatment under UK finance regulations.
Submitting evidence such as email communications, finance agreements, and details of misleading sales tactics strengthens your case. Many rejected claims succeed after being reviewed by the Ombudsman.
How to Start Your Claim Today
If you believe you’ve mis-sold a PCP agreement, take action now. Visit pcp-claims.org for expert advice, free eligibility checks, and a simple claims process. Many drivers have successfully reclaimed thousands, and you could be next.
The longer you wait, the harder it may be to gather necessary documents and evidence. Start today and take control of your finances by claiming what’s rightfully yours.
