PCP claims

What a PCP claim is

Personal contract purchase (PCP) was the most popular way to buy a new car on finance. You paid a deposit, then monthly payments, and at the end you could hand the car back, pay a final "balloon" payment to keep it, or part-exchange it for another car on a new PCP.

A PCP claim is a complaint that your lender didn't properly tell you about the commission it paid the dealer, or that the dealer could raise your interest rate to earn more. PCP agreements are credit agreements, so they're covered by the FCA's scheme in the same way as hire purchase.

Why PCP customers often have several claims

Many people changed car every three or four years by rolling one PCP into the next. Each of those was a separate agreement, often with a different lender, and each one can be a separate claim.

If you've had PCP since 2007, you could have three, four or more agreements in scope. That's where a soft credit search helps: it finds agreements in your name, including ones you've forgotten.

Find all my agreements

Is my PCP covered?

• You took it out between 6 April 2007 and 1 November 2024.
• You paid interest (0% PCP deals aren't covered).
• The dealer arranged it and was paid commission.
• It doesn't matter if you handed the car back, paid the balloon or part-exchanged.

Personal contract hire (leasing) is a hire agreement rather than credit, so it generally falls outside the scheme.

How dealer commission worked

The dealer acted as a credit broker and the lender paid it commission for each PCP it arranged. Under a discretionary commission arrangement, a higher rate meant more commission for the dealer, and you paid that higher rate.

Questions people ask