You Could Be Owed £1,400+

A PCP claim is a compensation claim against your car finance lender for mis-selling your Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement. Between 2007 and 2021, many lenders paid car dealers hidden commissions (called "discretionary commission arrangements" or DCAs) that incentivised dealers to push customers towards higher interest rates. The regulator ruled this practice unfair and potentially unlawful. If you were affected, you may be entitled to a refund of the excess interest you paid, plus compensation.

The amount varies depending on your finance agreement, the interest rate you were charged, and the size of the hidden commission paid to your dealer. Individual claims typically range from a few hundred pounds to several thousand. The average claim is estimated to be worth around £1,000–£2,000, though complex cases involving multiple agreements or high-value vehicles can be significantly higher. Some analysts have estimated the total industry compensation bill could exceed £30 billion.

You may be eligible if you: (1) took out a PCP or HP car finance agreement in the UK between approximately April 2007 and January 2021; (2) the finance was arranged through a car dealership (not directly with a bank); (3) you were a UK resident at the time. You don't need to still have the car or still be paying the finance. Even if your agreement has ended or the car was returned, you may still be able to claim.

In January 2024, the regulator launched a major review into historical discretionary commission arrangements in the motor finance market. The regulator found evidence that DCAs were widespread and that millions of consumers may have been overcharged. In October 2024, the Court of Appeal ruled against lenders in three key cases, finding that secret commissions were unlawful. The regulator paused the standard 8-week complaint response clock to allow an orderly industry-wide resolution. A Supreme Court hearing is expected to provide final clarity.

You can submit a complaint directly to your lender for free, then escalate to the Financial Ombudsman Service if needed — also for free. You do not have to use a claims management company. However, many people prefer to use a professional service because it's more convenient, the paperwork can be complex, and the professionals know how to maximise claims. Through Cash Me Up, the referral to our regulated partners is completely free to you — you pay nothing at all.

Once you submit your details, our regulated claims management partner will review your case and contact you — usually within 24 hours. They'll explain the process in full, ask any follow-up questions, and begin the claims process on your behalf. You'll be kept updated throughout. You don't need to do anything else.

Claims can be made against most major car finance lenders, including Black Horse (Lloyds Banking Group), Santander Consumer Finance, Motolio (formerly MotoNovo), Close Brothers, FirstRand (MotoNovo), Barclays Partner Finance, and many others. The key is not which lender you used, but whether a DCA was in place — and most were.

Normally, financial complaints must be submitted within 6 years of the event, or 3 years from when you became aware of the issue. However, the regulator's current review has complicated the timeline. The regulator issued guidance in 2024 extending the complaint response timeframe for lenders, and the situation is evolving. It's advisable to submit your claim as soon as possible rather than waiting, to protect your position.

"No win, no fee" means that if your claim is unsuccessful, you don't pay anything to the claims management company. You are only charged if your claim succeeds and you receive compensation. The fee is typically a percentage of the compensation received, agreed upfront. Through Cash Me Up, we pass your details to our partners completely free — there's no charge from us at any stage.

Both situations are fine. Whether your PCP agreement is still active, has been settled early, ran to the end of the term, or you've since returned the car under the voluntary termination provisions — you can still potentially make a claim for mis-sold commission. The claim relates to the original agreement and the hidden commission, not the current status of the car.