How much compensation you could claim for PCP finance mis-sold
How much compensation you could claim for PCP finance mis-sold
When someone hears “mis-sold PCP”, the first question is usually the same: how much could be coming back? And while there are headline figures floating around, the honest answer is that PCP compensation varies.
Some drivers may receive nothing (because the agreement was fair and properly explained). Others may be owed hundreds, and in some cases £1,000s — especially where the cost of borrowing was higher than it should have been because key information (like commission) was not made clear. The FCA’s own modelling suggests an average of around £700 per agreement under its proposed scheme, but with a wide range either side of that.
Claim First keeps the process simple: a quick eligibility check, a clear explanation of options, and then the team handles the hard work. The starting point is here: Mis-Sold PCP Finance Claims.
Why there isn’t a single “typical payout”
PCP compensation is not a fixed amount because agreements differ. Even two customers buying the same car can end up with very different outcomes depending on:
the interest rate (APR) and total amount borrowed
how long the agreement ran for
whether commission was paid and how it was structured
what the customer was told (and what was left out)
whether the deal was affordable at the time
whether extra products were added (warranty, GAP, service plans)
whether the agreement was settled early, refinanced, or rolled into another PCP
That is why any responsible firm will describe payouts as case-dependent, and why an eligibility check matters more than guesswork.
Claim First’s own guidance notes that most successful claims range between £1,500 and £5,000, depending on the agreement and the level of mis-selling.
At the same time, it’s also important to recognise the wider market position: the FCA’s proposed mass redress scheme modelling points to around £700 per agreement on average, with many people receiving more and many receiving less. The “right” expectation is not one number — it’s a range, with the final figure driven by the paperwork and the facts.
What compensation is usually made up of
While the exact calculation can differ by route (complaint outcome, settlement, ombudsman, or a wider scheme), compensation in PCP mis-selling cases often aims to put the customer back in the position they would likely have been in if they’d been treated fairly.
That can include:
1) Refund of what was overpaid
If the customer ended up paying more than they should have (for example, because commission arrangements pushed up the cost of borrowing), redress may include a refund of that “overpayment”.
2) Interest adjustments
Where money is refunded, there can be interest added to reflect the fact the customer was without that money for a period. The Financial Ombudsman Service explains that interest can be applied as part of putting things right, including interest “on top” of a refund where someone has been deprived of money.
3) Fees and charges (in some cases)
If fees were applied in a way that becomes relevant to the complaint (or are linked to an unfair agreement), they may be included in the calculation.
4) More than 1 agreement
Many drivers have had multiple PCP or HP agreements since 2007. Where more than 1 agreement is eligible, compensation may apply per agreement, so totals can rise quickly.
What makes a PCP mis-selling claim stronger (and often higher value)
A higher payout is not about luck — it’s usually about 1 or more clear issues being present.
Commission not properly disclosed
The FCA has been consulting on a compensation scheme relating to motor finance commission and the wider unfairness created when key information wasn’t disclosed. If commission played a part in the cost of the deal and the customer wasn’t given a fair chance to understand or challenge it, that can materially affect redress.
High interest and a large balance
A bigger borrowing amount and higher APR can mean a higher total interest bill — which can increase the “room” for redress if the agreement was unfair.
Long agreements, repeated refinancing, or rolling negative equity
If a customer repeatedly rolled from one PCP into the next, particularly with negative equity, the overall cost can compound — and the claim needs careful handling to untangle what happened.
Affordability concerns
If the finance was not affordable and checks were poor, complaints can focus on the lender’s responsibility and the harm caused. (These cases can be more complex, but the principle remains: the goal is fair redress based on evidence.)
What the FCA is doing (and why it matters to expectations)
Because of the scale of the issue, the FCA has been moving towards a structured approach. It paused the handling of some motor finance complaints in January 2024, and has said it will lift the pause on 31 May 2026, while finalising and beginning to implement any compensation scheme.
For customers, that means 2 practical things:
There may be waiting periods depending on the type of complaint and whether it falls inside any scheme rules.
Figures quoted online can change as the FCA finalises its approach.
The FCA’s published consumer guidance is clear: not everyone will be owed money, but where they are, the average is expected to be around £700 per agreement, with a wide range.
A realistic way to think about “how much could it be?”
Instead of fixating on a single number, it’s more useful to think in bands:
£0: where the deal was fair, the costs were clear, and no relevant mis-selling is found
£100–£1,000: where the impact is present but modest (lower balance, lower overall cost, smaller differential)
£1,000s: where the agreement was more expensive, ran longer, had higher interest, or involved more significant unfairness and/or multiple agreements
Claim First’s own FAQ on mis-sold car finance suggests most successful cases sit in the £1,500–£5,000 range, but the final outcome always depends on the specific agreement.
If you suspect you’ve been affected by unfair or unlawful practices, Claim First is ready to stand up for your rights. From making a car finance pcp claim to working with a trusted payday loan refund company, their specialist team makes the claims process clear and stress-free. Claim First also provides reliable housing disrepair services for tenants living in unsafe or neglected properties, as well as expert scam recovery services to help with lost funds from fraudulent schemes. Take control today — speak to Claim First and start your claim with confidence.
