PCP finance mis-sold claims explained

PCP (Personal Contract Purchase) is one of the most common ways people in the UK finance a car. It can look straightforward on the surface — monthly payments, an optional final “balloon” payment, and a choice at the end. But for many drivers, the problem wasn’t the product itself. It was how the deal was sold.

A PCP finance mis-sold claim is a way of challenging a car finance agreement where key information was not properly explained, important costs were not made clear, or the agreement was made unfair by the way it was arranged. Claim First’s approach is built around 1 simple idea: claiming what’s rightfully yours shouldn’t feel like a battle — it should be simple, fast, and stress-free.

For anyone who wants a direct route into the process, please check Mis-Sold PCP Finance Claims.

What “mis-sold” PCP finance actually means

Mis-selling usually comes down to clarity and fairness. If a customer took out PCP (or HP) and was not clearly informed about the total cost, interest rate, commission, or affordability, Claim First explains that the agreement may have been mis-sold.

In real life, that often looks like:

• The monthly payment was highlighted, but the true cost was not properly explained.

• The customer was not told how the interest rate was decided.

• The dealership’s role as a broker (and the incentives behind the scenes) were not made transparent.

• The agreement was presented as “the only option”, without a fair comparison.

A mis-sold claim is not about being “bad with money” or regretting a purchase later. It’s about whether the agreement was sold fairly, with the customer given the information they needed to make an informed choice.

Common red flags that can trigger a PCP mis-selling claim

Claim First highlights several examples of what can go wrong in PCP and car finance agreements:

1) Inflated interest rates

Some dealers could earn more commission by placing customers on higher rates than necessary. Claim First notes that if the customer wasn’t clearly shown how the rate was decided, they may have overpaid.

2) Undisclosed commission

If the customer wasn’t told the lender or broker would receive commission, Claim First says the agreement could be classed as unfair and non-transparent under FCA rules.

3) Vague or misleading information

Where the full cost, duration, or risks weren’t properly explained, Claim First suggests this may breach consumer protections.

4) Affordability concerns

If the finance was approved without a proper sense-check of affordability, that can form part of a complaint — especially if the repayments caused financial strain.

Who can make a mis-sold PCP finance claim?

Claim First’s eligibility guidance is intentionally simple: if someone financed a car since 2007 on a PCP or HP contract, they may be eligible to claim.

A few points that reassure many drivers straight away:

• The car does not get taken away. A claim challenges the fairness of the finance deal, not ownership of the vehicle.

• It won’t affect the credit score. Claim First explicitly states that making a claim will not impact credit.

• It’s free to check. Claim First promotes a free eligibility check, and their wider service is positioned as “No Win, No Fee”.

How much could someone get back?

Compensation depends on the agreement and what went wrong, but Claim First gives a clear expectation range: most successful claims are £1,500–£5,000.

On their PCP page, Claim First also states that if a claim is successful, the customer receives a refund that “could be anywhere between £1,500 and £5,000 on average.”

That doesn’t mean everyone gets the same amount. The value tends to move based on factors like the amount financed, the APR, how long the agreement ran, and whether the customer was pushed into a worse deal because of commission or poor explanations.

How the Claim First process works

Claim First lays out a 3-step process designed to keep things simple:

1. Share finance details – the customer fills out a short form and uploads the finance agreement if available. Claim First checks for signs of mis-selling.

2. Review and file the claim – their finance and legal team review the agreement and begin the legal process to challenge the lender.

3. Refund paid out – if the claim succeeds, the refund is paid to the customer.

This is consistent with the wider Claim First brand promise: start online in minutes, and they handle the paperwork and legal steps.

To start, use: Start a Mis-Sold PCP Claim.

What documents are needed?

Having the paperwork helps, but it’s not always essential. Claim First says the finance agreement is useful, but they can often retrieve the information from the lender or dealership with the customer’s permission.

Typically, claim handlers may ask for:

• the finance agreement (PCP/HP)

• any settlement letter (if settled early)

• basic personal details to locate the agreement

• any emails or written quotes you were given at the dealership

• (where relevant) evidence showing what you were told about the rate, commission, or total cost

If someone doesn’t have these to hand, they can still begin the process and let the team guide them.

How long do PCP mis-sold claims take?

Some claims can be resolved within months — and Claim First’s general FAQ says most claims are resolved “within a few months,” with updates along the way.

However, PCP mis-selling is also tied to a wider regulatory review around motor finance commission. The FCA has confirmed there has been a pause on handling certain motor finance complaints, and that it will lift that pause on 31 May 2026.

In plain terms: some cases may take longer than people expect, depending on the lender involved and whether the complaint falls under the commission issues being reviewed.

If a driver financed a car on PCP or HP since 2007 and feels the deal wasn’t properly explained — especially around interest, commission, or the true cost — the most sensible next step is simply to check eligibility.

If you believe you have been treated unfairly, Claim First is here to help you take action with confidence. Whether you’re dealing with a mis sold car finance claim, seeking expert payday loan refund services, or need trusted housing disrepair services to challenge poor living conditions, their experienced team will guide you every step of the way. Claim First also offers dedicated scam recovery services, helping you recover funds lost to fraud quickly and professionally. Don’t let lenders, landlords, or scammers benefit from unfair practices — start your claim today and let Claim First fight for the compensation you deserve.