Missold Car Finance Claims: A UK Guide to PCP, HP, and Leasing Complaints
If you’ve ever walked out of a dealership thinking “that was quick and easy”, you’re not alone. Car finance is now the normal way many people pay for vehicles in the UK, especially when buying new. With so many agreements being signed every day, it’s no surprise that some people later look back and feel the deal was not properly explained, or that they paid more than they should have.
This guide is here to help you understand mis-sold car finance complaints in the UK, including PCP, HP and leasing, in plain English. You’ll learn what to look out for, how the complaint process usually works, what evidence can help, and what to do if you’d rather not deal with lenders yourself.
If you want to explore the service straight away, you can start here:
Why mis-sold car finance claims are being talked about so much in the UK
You might be seeing more posts and headlines because regulators and consumer groups have been looking closely at how motor finance was sold, especially where commission was involved. In simple terms, commission is money paid to a broker or dealer for introducing your finance to a lender. In some cases, the way commission worked may have influenced the interest rate you were offered, and many customers say they were not told this clearly.
It matters because car finance is huge in the UK. Government and industry reports regularly highlight how common finance is for both new and used vehicles, and the overall value of borrowing involved. When a market is that big, even small issues in sales processes can affect a lot of people.
The key takeaway for you is this: if you suspect you weren’t told something important, or you feel you ended up paying more than you should have, it’s worth checking your agreement.
PCP, HP and leasing: what you actually signed up for
Before you can spot what may have gone wrong, it helps to understand the basics of each agreement type. Many people simply remember “monthly payments”, but the structure is different, and so are the common pain points.
PCP (Personal Contract Purchase)
PCP is built around the idea of lower monthly payments, with a choice at the end.
A typical PCP includes:
A deposit (sometimes £0)
Monthly payments for a set term (often 24 to 48 months)
A larger final payment (often called a balloon payment, or optional final payment) if you want to keep the car
End options: hand it back, part-exchange, or pay and keep it (sometimes by refinancing)
PCP complaints often come down to whether you were properly told:
How the final payment works and how big it could be
What happens if you go over mileage or return the car with damage
What the total cost would be if you keep the car
Whether the interest rate was fair and how it was set
PCP can be a good product when it fits your needs, but it can feel like a trap if the key parts were rushed or glossed over.
HP (Hire Purchase)
HP is usually simpler to understand.
A typical HP includes:
A deposit
Fixed monthly payments over a set term
Ownership transfers to you at the end (often after the final payment, plus any option fee)
HP complaints often focus on:
Affordability checks (were they realistic and responsible)
Whether the agreement was explained clearly
Fees and charges
Whether the APR was inflated or unsuitable
If you were told HP was the best or only option without explanation, that can also be relevant.
Leasing (often PCH, Personal Contract Hire)
Leasing is effectively renting a vehicle long-term. You pay to use it, then give it back.
A typical lease includes:
An initial payment (sometimes called an initial rental)
Monthly rentals for a set term
No ownership at the end
Mileage and condition rules, with charges if you breach them
Leasing complaints can involve:
Excess mileage charges that were not made clear
Wear-and-tear expectations that were not properly explained
Being steered into leasing when you wanted ownership
Affordability and suitability concerns
Leasing is not “bad”, but it must be sold clearly, with the right expectations.
What “mis-sold” can look like in real life
Mis-selling is not always about someone lying to you. More often, it’s about what you were not told, or what wasn’t explained clearly enough for you to make an informed decision.
Here are common issues that show up across PCP, HP and leasing.
1) Commission not properly explained
A major theme in UK car finance complaints is commission. If the dealer or broker was paid by the lender, you should have been given clear information about that arrangement. Many people say they were never told commission existed, or that it was brushed off as irrelevant.
If commission affected the rate you were offered, and you were not told, you may have a reason to complain.
2) You weren’t told the true cost
Monthly payments can look affordable while the overall deal is expensive. This is especially common with PCP because the final payment is a big part of the total cost.
Examples include:
You were shown the monthly payment but not the total repayable
The PCP final payment was not properly explained
Extra fees were included without a clear explanation
3) Affordability checks felt rushed or unrealistic
If your finance was approved quickly with minimal questions, or you were clearly stretching yourself financially, you may feel the checks were not responsible. Affordability is important because a finance agreement should not put you in financial trouble.
4) You were pushed into a product that didn’t fit you
Mis-selling can involve suitability. For example:
You wanted to own the car, but you were pushed into leasing
Your mileage needs were not discussed properly, and you later faced charges
You were encouraged to take a longer term than you were comfortable with
5) Pressure selling or “today only” tactics
If you felt pushed to sign quickly without time to understand the deal, that matters. You should have been given a fair chance to read and ask questions.
A quick self-check: do you have a valid complaint?
You don’t need to be a finance expert to spot warning signs. Ask yourself:
Were you told the dealer or broker might be paid commission by the lender?
Did anyone explain how your interest rate was set?
Were you clearly shown the total repayable (not just the monthly figure)?
For PCP: did you understand the final payment and end options?
For leasing: were mileage and condition charges explained properly?
Did affordability checks feel light-touch or rushed?
Did you feel pressured to sign?
If a few of these feel familiar, it’s usually worth getting your agreement checked.
Useful Claim First pages if you want to start reading around the topic:
How the UK complaints process works (step-by-step)
Most people worry that complaining will be complicated. In reality, the process is usually straightforward, as long as you focus on the key points and keep a record of what you send.
Here’s the usual route.
Step 1: Identify your lender and agreement type
If you’ve lost your paperwork, you can often find the lender’s name in:
Old bank statements
Emails from the dealership or finance provider
Your credit report
Don’t worry if you don’t have everything. Lenders typically keep records of agreements.
Step 2: Gather what you can (but don’t get stuck)
Helpful documents include:
Your finance agreement
Pre-contract information or key facts illustration (if you have it)
Emails or texts with the dealer
A settlement figure (if you settled early)
Notes about what you were told at the point of sale
Even if you only know the rough date, the vehicle, and where you bought it, you can still begin.
Step 3: Send a complaint to the lender (and sometimes the broker or dealer)
Your complaint should be simple and factual. You’re explaining:
What you believe was unclear or unfair
What you were not told (commission, rate-setting, total cost, penalties)
How it affected your decision or what you paid
What outcome you want (often a refund of overpaid interest or charges)
A common approach is to ask direct questions, such as:
Was commission paid to the dealer or broker?
Did the dealer have any discretion over the interest rate?
How was the APR set for your agreement?
What would your costs have been if commission was not involved?
Step 4: Keep track of responses and timelines
Once your complaint is submitted, keep a simple timeline:
Date you complained
Any replies received
Any final response letter date (if issued)
This matters if you need to escalate later.
Step 5: Escalate if you need to
If you don’t agree with the lender’s final response, you may be able to take it further through the standard complaint routes (depending on your circumstances). This is where many people want support, because it can involve more back and forth.
What compensation could look like
Every case is different, and nobody should promise you an exact figure without reviewing your agreement.
If your complaint succeeds, compensation can include things like:
A refund of interest you should not have paid
A refund linked to undisclosed commission (where relevant)
Associated fees and charges
Statutory interest (where applicable)
In some situations, adjustments to the account balance
The exact value depends on your agreement, APR, term length, and what went wrong in the sale.
“My agreement is finished or the car is gone. Can I still complain?”
In many cases, yes.
A mis-selling complaint is about how the finance was sold, not whether you still have the car today. If you sold the vehicle, returned it, or changed cars since, you may still be able to raise concerns about the sale and what you were told at the time.
Next steps
If you think your PCP, HP, or leasing deal wasn’t properly explained, whether that’s commission, an inflated APR, unclear costs, or affordability issues, don’t just leave it. You don’t need perfect paperwork, and you don’t need to know the legal wording. You just need to take the first step.
Start your check today here:
Or get in touch directly:
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.
