Mis-Sold PCP Agreements: What You Can Do Next

Personal Contract Purchase (PCP) agreements are one of the most popular ways to finance a car in the UK. They allow buyers to pay lower monthly instalments with the option to own the car at the end. However, many consumers were not given full details about balloon payments, mileage restrictions, or commission structures. As a result, thousands of drivers may be entitled to compensation.

Signs That Your PCP Agreement Was Mis-Sold

If you took out a PCP agreement and were not given clear financial terms, you may have been mis-sold. One common issue is dealers failing to explain how interest rates or commissions affect the total cost. Many consumers were also pressured into signing without understanding the final balloon payment. If the lender failed to conduct proper affordability checks, you could be eligible to make a claim.

How to Check If You Have a Valid PCP Claim

To assess whether you can make a claim, check your agreement for key financial details. If your dealer did not disclose the commission they received from the lender, it could be grounds for a claim. The Financial Conduct Authority (FCA) has already investigated hidden commission practices. You should also check whether your agreement included misleading terms about final payments or excessive mileage charges.

What Compensation Can You Receive for a Mis-Sold PCP Agreement?

If your claim is successful, you could receive a refund of extra charges or interest paid on your agreement. Some drivers have secured thousands of pounds in compensation after proving their agreements were mis-sold. The exact amount depends on factors such as total interest paid, undisclosed commission, and overpayment due to unfair terms. Using a PCP claims calculator can help estimate the potential refund you might receive.

Steps to Make a PCP Mis-Selling Claim

1. Gather Your Agreement Details – Find your original PCP contract and any related documents from the dealer or lender.
2. Check for Mis-Selling Indicators – Review your agreement for hidden commission, unclear final payments, or affordability concerns.
3. Contact Your Lender – Submit a formal complaint outlining why you believe the agreement was mis-sold.
4. Escalate to the Financial Ombudsman – If the lender rejects your claim, you can take it further by contacting the Financial Ombudsman Service (FOS).
5. Consider Legal Assistance – If you struggle with the process, a solicitor or claims management company may help.

Deadline for Making a PCP Mis-Selling Claim

There is a time limit for making a claim, usually six years from when the agreement was signed. However, if you only discovered the mis-selling recently, you may have three years from that date to take action. It’s crucial to act quickly before the deadline passes.

Should You Use a Claims Management Company?

You can make a PCP mis-selling claim yourself without paying fees to a claims company. Many firms take a percentage of your compensation, so it’s worth attempting a claim independently first. The Financial Ombudsman Service is free and impartial, making it a good first step before considering legal help.

Final Thoughts

If you believe your PCP agreement was mis-sold, you have the right to claim compensation. Reviewing your contract and acting quickly can help you recover unfair costs. With the increasing number of mis-sold PCP cases, now is the time to check if you are owed money. Don’t delay—start your claim today and take back control of your finances.