What a hire purchase claim is
With hire purchase (HP) you paid a deposit and fixed monthly payments, and owned the vehicle after the last payment. It was common for used cars, vans and motorbikes, and for people who wanted to own the vehicle outright.
An HP claim is a complaint that the lender didn't properly disclose the commission it paid the dealer, or that the dealer could set a higher interest rate to earn more. HP agreements are covered by the FCA's scheme in the same way as PCP.
Is my hire purchase covered?
- You took it out between 6 April 2007 and 1 November 2024.
- You paid interest.
- A dealer or broker arranged it and was paid commission.
- It's covered whether the vehicle was a car, van or motorbike, new or used.
Conditional sale agreements, which work much like HP, are covered too.
Used cars and independent dealers
A lot of HP was arranged by independent used-car dealers. Many of these dealers worked with lenders such as Black Horse, Close Brothers, MotoNovo and Santander, and were paid commission on each deal. If you don't know which lender you had, here's how to find out.
How dealer commission worked
Sources
Checked on 7 October 2026 against:
Questions people ask
Can I claim if I've paid off my HP?
Yes. Most HP agreements in scope have already ended. What matters is when you took the finance out.
I bought a van on HP. Is that covered?
It can be, if the finance was regulated. That usually means it was in your own name as an individual or sole trader. Finance taken out by a limited company isn't covered.
Does a claim affect my credit score?
No. Making a complaint doesn't affect your credit score, and the soft search Consultation Claims uses to find agreements can't be seen by lenders.
You don't have to use a claims management company. You can complain to your lender, and then to the Financial Ombudsman Service, for free.