Many UK drivers may be entitled to a PCP finance refund or car finance compensation without even realising it. If you were mis-sold a finance agreement, you could be eligible to claim back money you unfairly paid. Whether you were misled about the terms of your loan, charged hidden fees, or unknowingly paid commissions to your lender, you have the right to seek compensation. At PCP Refund Claim, we help drivers reclaim what’s rightfully theirs. Read on to understand how mis-selling occurs and what you can do if you’ve been affected.
Understanding PCP & HP Car Finance Agreements
Car finance agreements, such as Personal Contract Purchase (PCP) and Hire Purchase (HP), have become one of the most popular ways for UK drivers to finance a vehicle. They offer affordability and flexibility, but not all agreements are sold fairly. Many drivers have been mis-sold finance deals without knowing it.
Personal Contract Purchase (PCP) Explained
PCP agreements allow drivers to pay lower monthly payments with a final ‘balloon payment’ at the end of the term. You can either return the car, trade it in for a new model, or make the final payment to keep it. However, some dealerships and finance providers have failed to disclose hidden costs, commissions, and inflated interest rates, making these agreements unfair to consumers.
Hire Purchase (HP) Explained
With a Hire Purchase agreement, you make fixed monthly payments until you own the vehicle outright. While this method is straightforward, some customers were misled about the total cost, interest rates, and additional charges.
If you believe you were not given clear, honest information about your finance deal, you may have a claim.
How Car Finance Mis-Selling Happens
A major car finance mis-selling scandal has surfaced in the UK, revealing that thousands of drivers were unknowingly put into unfair or misleading agreements. Some common unfair practices include:
- Hidden Commissions & Inflated Interest Rates
Many finance providers added secret commissions to PCP and HP deals, increasing the amount you paid each month. If your lender failed to disclose commission payments to a broker or dealership, this could be grounds for a claim.
- Lack of Transparency in Finance Agreements
Some lenders failed to explain the terms properly, leaving customers unaware of extra fees, balloon payments, or interest rate variations. If you were misled or pressured into a deal that wasn’t in your best interest, you could be eligible for compensation.
- Unaffordable or Unsuitable Agreements
Were your financial circumstances properly assessed before taking out a PCP or HP finance deal? If not, you might have been placed in a contract that was unaffordable or unsuitable for your situation.
The FCA Investigation into PCP Mis-Selling
The Financial Conduct Authority (FCA) launched an investigation into the UK car finance industry, uncovering widespread mis-selling and unfair practices. Their findings led to greater scrutiny of how lenders and dealers operate, giving consumers a stronger case for compensation.
If you were affected, it’s crucial to act now before claim deadlines expired.
Were You Mis-Sold PCP Finance?
You may have been mis-sold a PCP finance deal if:
✔ The dealership did not explain the total cost of the agreement properly.
✔ You were not told about commission payments to the dealer.
✔ You were pressured into signing a deal without understanding the balloon payment.
✔ Hidden fees, such as excess mileage charges or early termination fees, were not disclosed.
Do You Qualify for a PCP Finance Refund?
You could be eligible for a refund if:
✅ Your lender failed to disclose commissions
✅ You were misled about interest rates or hidden charges
✅ Your finance provider didn’t explain your options clearly
✅ You were pressured into an unsuitable or unaffordable agreement
If any of the above apply to you, PCP Refund Claim can help you take action on a No Win, No Fee basis.
How to Claim Your PCP Refund – No Win, No Fee
- Gather Your Documents
To make a claim, you’ll need your car finance agreement, details of payments made, and any correspondence with the lender or dealership.
- Submit Your Claim
Our expert team will assess your case and determine if you’re eligible. If you qualify, we’ll handle everything for you.
- Receive Compensation
Successful claims can result in refunds ranging from £1,500 to £10,000, depending on the extent of mis-selling and the total amount you overpaid.
Time Limits for Making a Claim
You typically have three years from when you realised (or should have realised) that you were mis-sold car finance. Don’t delay—if you miss this deadline, you could lose your right to claim.
Start Your PCP Refund Claim Today
If you suspect you were mis-sold PCP or HP car finance, don’t wait. Check your eligibility now and let us fight for the compensation you deserve.
📞 Contact us today for a free, no-obligation claim assessment!
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