Mis-Sold PCP Car Finance Claims
Discover how Locksley Law can help you claim compensation for mis-sold PCP and HP car finance agreements.
Expert Legal Team
UK-Wide Service
Were You Overcharged on Car Finance?
Many PCP and HP agreements before 2021 included hidden discretionary commissions (DCAs), where dealers could raise your interest rate without your knowledge. These practices are now banned.
Our Comprehensive Range of Legal Expertise
What is a PCP claim?
A PCP (Personal Contract Purchase) claim is a legal complaint against a finance provider or broker who mis-sold your car finance agreement.
Not being told about commissions paid to the dealer or broker
Being offered inflated interest rates without explanation
Poor or no affordability checks
Sales pressure or unclear information about key terms.
Important: Claims relating to balloon payments, hidden charges or other non-DCA issues are not covered by the FCA's redress scheme. Eligibility depends on individual circumstances and may require separate legal action. Outcomes cannot be guaranteed. Please refer to our full disclaimer below.
You may have a claim if any of the following apply:
- You took out a PCP or HP car finance agreement before January 2021.
- The commission model was discretionary, allowing the dealer or broker to set or influence your interest rate.
- The commission was large or a significant share of your total cost of credit, and it was not properly explained.
- You were not told that the dealer or broker received a commission from the lender.
- You were charged inflated interest without a clear explanation.
- Affordability checks were poor or not carried out, or the finance became unaffordable.
- You felt pressured to sign or salespeople misled you about your options.
- You did not fully understand key terms such as the repayment schedule or balloon payment.
- The relationship between the lender and the dealership was not transparent, or the commission structure was not adequately explained.
Once you have signed up, we can make these enquiries on your lender on your behalf to see if you were affected by any of the above.
Note: Not every PCP or HP agreement will qualify. Eligibility depends on your specific circumstances and the terms of your agreement.
Important Update | December 2025
Current Position
Following the Supreme Court's ruling on 1 August 2025, the Financial Conduct Authority (FCA) has now released its consultation paper — CP25/27 — Motor Finance Consumer Redress Scheme.
This paper sets out how a potential nationwide compensation scheme could operate for customers who took out car-finance agreements involving undisclosed Discretionary Commission Arrangements (DCAs).
The FCA consultation on the proposed motor finance consumer redress scheme closed on 12 December 2025.
Timeline and Next Steps
- The FCA's consultation is scheduled to run until 12 December 2025.
- A final decision on the scheme's structure is anticipated in early 2026, with payments expected to commence later this year.
- Lenders' deadlines for issuing final complaint responses have been temporarily extended to 31 May 2026, consistent with the FCA's consultation paper (CP25/27).
- Consumers who have already filed complaints with their lender or the Financial Ombudsman Service (FOS) are protected under the current pause and will retain their place in line.
Supreme Court Clarification
The Supreme Court confirmed that:
- Fixed-fee commission (where the dealer's commission is set and not linked to the customer's interest rate) does not generally give grounds for redress.
- Discretionary Commission Arrangements (DCAs), where a dealer could adjust the customer's interest rate to increase their own commission, can still create an "unfair relationship" under section 140A of the Consumer Credit Act 1974.
- The ruling did not award automatic compensation — it provides the legal foundation for the FCA's proposed redress process.
FCA Consultation - Key Points
Under the current proposal:
- The scheme would cover regulated hire-purchase and PCP agreements entered between 6 April 2007 and 1 November 2024.
- Redress would focus on cases where commission linked to DCAs was not properly disclosed to the customer.
- Typical compensation is projected to average around £829 per agreement, although some may receive more or less depending on their specific loan terms and commission level.
- The FCA is considering repayment of the commission and related interest as the likely remedy.
- Customers will be able to access the scheme directly through their lender or FOS at no cost, without using a solicitor or claims-management company.
All figures and timeframes are provisional and may change once the FCA publishes its final rules in 2026.
What This Means for Our Clients
Our legal teams continue to progress all existing client matters already lodged. For anyone who has not yet submitted a complaint, making an early complaint ensures you are included when the FCA's scheme goes live.
We remain ready to review each case once the FCA confirms the final redress process in 2026.
Our Fees
We act on a No Win, No Fee basis.
If your case succeeds, our fee is between 15% to 30% plus VAT.
If your claim is successful, our fees will be deducted from the compensation recovered. If your claim is unsuccessful, you will not be required to pay our fees.
You have the right to cancel this agreement within 14 days without charge. If you cancel after the 14-day cooling-off period, reasonable fees may apply for work already undertaken.
Full details of our fees and terms will be provided before you proceed.
Example:
If you are awarded £829* in compensation, our fee would be £248.70 + VAT (£49.74) = £298.44, leaving you £530.56.
No Win No Fee and Our Costs
Locksley Law Solicitors provides all PCP and motor finance claims on a No Win No Fee basis under a formal Conditional Fee Agreement (CFA).
This means you will not pay us for our work if your claim is unsuccessful.
If your claim is successful, our fees will be deducted from the compensation recovered. If your claim is unsuccessful, you will not be required to pay our fees.
You have the right to cancel this agreement within 14 days without charge. If you cancel after the 14-day cooling-off period, reasonable fees may apply for work already undertaken.
Full details of our fees and terms will be provided before you proceed.
For court proceedings or issued claims, our total fee (including our basic charges, success fee, and disbursements) will not exceed 30% plus VAT of the compensation recovered.
For Financial Conduct Authority (FCA) redress or other non-court settlements, our total charges are capped between 15% and 30% plus VAT, depending on the complexity and outcome of the case.
These limits ensure that you always keep the majority of any compensation you recover and that our charges remain within the Solicitors Regulation Authority (SRA) and FCA fee rules.
For a complete breakdown of our fees, funding options, and cooling-off rights, please see our our costs page.
How Does It Work?
01
We Locate Your Agreements
We will check, using multiple credit agencies, to identify any motor finance agreements going back 15 years or more.
02
We Qualify Your Claim
Our team will review, verify and qualify your claim against our carefully considered criteria.
03
Pursuing Your Compensation
Once we have everything we need, we will submit a complaint to your lender on your behalf. We will work tirelessly to secure the compensation you deserve, keeping you informed throughout the entire process.
Misleading Advice
Many consumers report receiving advice that isn't fully clear or balanced when it comes to car finance deals. According to the FCA's report (March 2019), key information such as how interest rates are set and the overall cost of the agreement is often not presented in a transparent way. This can lead to consumers agreeing to terms that are not suited to their needs.
The report highlights that commission structures rewarding brokers for recommending higher interest rates may result in advice that benefits the finance provider rather than the customer.
Key points from the FCA report include:
- Incomplete or unclear explanations of finance costs and interest rate calculations.
- Incentive structures for brokers that can lead to higher-than-necessary finance charges.
- The risk that consumers are not provided with all necessary information to make an informed decision before committing.
Pressure Tactics
Pressure tactics are a recurring issue in the car finance market, where consumers may be rushed into decisions without sufficient time to review all the details. The FCA report emphasises that some sales practices create an artificial sense of urgency, for instance, suggesting that a deal is only available for a limited time, to pressure customers into quickly signing on the dotted line.
Such high-pressure environments may not allow the consumer to fully consider the long-term implications of the finance agreement, particularly when key risks and costs are not yet fully disclosed.
The report advises that you should:
- Insist on sufficient time to review all documentation before making a decision.
- Seek independent advice if you feel pressured or rushed.
- Be aware that urgency tactics may be used to distract from missing or incomplete information.
Cancellation Rights
You have a legal right to cancel your Conditional Fee Agreement (CFA) within 14 days of signing, without giving any reason and without incurring any charges, in accordance with the Consumer Contracts Regulations 2013.
If you wish to cancel, you can do so by contacting us by email at contact@locksleylaw.co.uk or by post at our registered office. For full details of your cancellation rights, please refer to our Right to Cancel Policy in our costs page or your CFA Terms.
If your claim is successful, our fees will be deducted from the compensation recovered. If your claim is unsuccessful, you will not be required to pay our fees.
You have the right to cancel this agreement within 14 days without charge. If you cancel after the 14-day cooling-off period, reasonable fees may apply for work already undertaken.
Full details of our fees and terms will be provided before you proceed.
Helping You Pursue Fair Compensation
Important Legal Disclaimer
Eligibility depends on your individual circumstances and the terms of your agreement. While commissions are not unlawful per se, unusually high or unexplained commissions may be unfair. Any figures shown are for illustrative purposes only. FCA timelines and scheme rules may change. This page provides general information and does not constitute legal advice.
The Financial Conduct Authority (FCA) has indicated that consumers making a car finance complaint may receive on average £829* in compensation, although actual outcomes vary depending on individual circumstances. You can read more directly on the FCA website here.
Other issues such as balloon payments, affordability concerns or hidden charges are not included in the FCA's redress scheme. In some cases, these types of complaints may not succeed. In very limited situations, other legal routes might be available, but these are uncommon and success is uncertain.
You do not need to use a claims management company or solicitors to pursue a complaint regarding motor finance commission arrangements. Consumers are entitled to submit complaints directly to their lender and, if necessary, to the Financial Ombudsman Service (FOS), free of charge.
Under the new redress scheme, Lenders will refund only affected agreements. Compensation depends on eligibility and FCA redress criteria, FCA link - *Average payout figure and Redress Scheme: https://www.fca.org.uk/news/statements/fca-confirms-motor-finance-redress-scheme.
If you wish to raise a concern about our service or conduct, you can contact the SRA at sra.org.uk.