The deadline for submitting mis-sold PCP finance claims is 31st August 2027, with industry experts suggesting that motorists submit their applications as ‘the sooner, the better.’
The UK’s finance regulator, the FCA, announced its redress scheme in late March 2026 confirming that around 12 million PCP car finance agreements have been mis-sold with discretionary commission agreements (DCAs) or ‘hidden agreements’ in other words by car dealers and brokers. Common finance lenders in the space include Blackhorse, Close Brothers and MoneyBarn.
The latest figures suggest that the average motorist can claim back £829 in compensation for a mis-sold car finance claim between 2007 and 2024.
This is based on the FCA highlighting two schemes whereby Scheme 1 covers older motor finance agreements, those taken out between 6 April 2007 and 31 March 2014; scheme 2 is for more recent ones, those taken out between 1 April 2014 and 1 November 2024.
You can submit a claim yourself directly through the lender’s website or use a PCP claims company to do it for you, with a higher chance of approval.
Experts Say Submit a Claim Sooner Rather Than Later
Industry experts including Martin Lewis have said it is better to make a claim sooner rather than later - and the FCA Chief Nikhil Rathi has said there is no reason that car finance companies can’t start paying them out right away.
But realistically, and based on reclaims for things like payday loans and PPI, the earlier that these claims are made, the more likely the individual is set to receive the full amount owed. By comparison, companies such as Wonga and Amigo, both lenders, offered small percentages to victims of the amount owed such as 10% of the owed figure because their compensation pot quickly started to run out.
Car finance lender Close Brothers has already confirmed laying off 600 jobs to help fit these bills.
As the market becomes more saturated and more and more claims come through, those that apply earlier will certainly have an increased chance of their claim being successful.
How Long Does a PCP Finance Claim Take To Pay Out?
A PCP car finance claim can arguably be paid out in a few weeks, or even immediately, says the FCA chief, since all motor finance lenders know about the terms and conditions of this redress scheme.
However, a more realistic timeframe is up to 12 months for your compensation to be fully paid back to you.
Do I Need To Use a Claims Company To Make a PCP Car Finance Claim?
Yes and no. There is no legal obligation to use a claims management company and it is important to know that they can charge 10%-30% commission to handle your claim.
Whilst you don’t necessarily need to and can submit the claim yourself, you may find a claims management company might find all your documents and streamline the process with the lender - helping you to get the best outcome, best chance of approval and highest compensation possible.
Can I Make a Car Finance Claim Myself?
Yes, you always have the option to make a PCP car finance claim yourself, and it is essential you follow the set instructions so that your claim has the best chance of being approved.
To do this, you can follow instructions from the FCA website, the MoneySavingExpert website or details on the website of the motor car finance provider or dealer.
