Were You Mis-Sold Car Finance?

A PCP (Personal Contract Purchase) car finance claim is a legal claim for compensation if you were not properly informed about commission payments made by your lender to the car dealer who arranged your finance. The Supreme Court confirmed that these hidden commissions — known as Discretionary Commission Arrangements (DCAs) — were unlawful and inflated the cost of borrowing for millions of UK motorists.

You may be eligible if you took out PCP, HP, or conditional sale car finance in the UK between 2007 and 2024. You do not need to still have the car or the finance agreement. The free eligibility check takes approximately 60 seconds.

The average PCP car finance claim is worth between £700 and £5,000, depending on the finance amount, interest rate, and the commission structure used by the lender. Some claims have resulted in payouts exceeding £10,000. The FCA estimates the total redress for UK motorists could reach £30 billion.

No. The eligibility check is completely free and takes around 60 seconds. MotorRedress operates on a No Win No Fee basis, meaning you only pay a success fee if your claim results in compensation. There are no upfront costs, no hidden charges, and no obligation to proceed.

No. MotorRedress uses a soft credit search. Soft searches are not visible to other lenders and have absolutely zero impact on your credit rating. Only you can see soft searches on your credit file.

Milberg London LLP is an internationally recognised law firm regulated by the Solicitors Regulation Authority (SRA number 670230). They have recovered over £193 million in compensation for consumers and led the landmark Dieselgate litigation against Volkswagen Group in the UK. Milberg is ranked by Legal 500 and Chambers and Partners.

The eligibility check takes approximately 60 seconds. Once submitted, many lenders resolve claims within 8 to 12 weeks. The FCA is implementing a redress scheme in 2026 which is expected to streamline the process further.

No. A soft credit search can locate your past and present motor finance agreements automatically through Equifax and TransUnion. You do not need any paperwork, agreement numbers, or account details.

Yes. You can claim regardless of whether you still own the vehicle or have finished paying off the finance. The claim relates to the finance agreement itself — specifically the hidden commission that inflated your borrowing costs — not the current ownership of the car.

You are entitled to complain directly to your lender or refer your complaint to the Financial Ombudsman Service (FOS) free of charge, without using a claims management company or solicitor. MotorRedress provides a convenient service for those who prefer professional assistance, but using our service is entirely optional.

You were likely mis-sold PCP finance if the car dealer did not disclose the commission they received from the lender for arranging your finance. Under Discretionary Commission Arrangements (DCAs), dealers could set higher interest rates to increase their own commission — meaning you paid more than necessary. The Supreme Court ruled in Johnson v FirstRand [2025] UKSC 33 that this practice was unlawful. If you took out PCP, HP, or conditional sale car finance in the UK between 2007 and 2024, you may have been affected.

The FCA estimates the average PCP mis-selling compensation at around £700 per agreement. However, claims management firm Bott & Co reports average payouts of up to £1,600, and some claims exceed £10,000. The amount depends on the size of the finance agreement, the interest rate charged, and the commission structure used. UK lenders have set aside over £8.2 billion in total provisions for redress.

The eligibility check through MotorRedress is completely free. If you proceed with a claim, it is handled on a No Win No Fee basis — you only pay a success fee if compensation is awarded. The maximum fee is capped at 30% for claims under £1,500 as regulated by the Claims Management Conduct of Business (CMCOB) rules. Alternatively, you can claim directly through your lender or the Financial Ombudsman Service at no cost whatsoever.

The Financial Conduct Authority (FCA) is implementing a motor finance redress scheme to handle the volume of PCP and HP mis-selling claims across the UK. The scheme provides a standardised process for lenders to assess and pay compensation to affected motorists. The FCA estimates 14.2 million agreements may be affected, with total redress potentially reaching £30 billion. The scheme deadline is expected by the end of March 2026, making it important to check your eligibility as soon as possible.

The initial eligibility check takes approximately 60 seconds. Once a claim is submitted to your lender, most respond within 8 to 12 weeks. If the lender rejects your claim or does not respond, it can be referred to the Financial Ombudsman Service (FOS), which may take additional time. The FCA redress scheme launching in 2026 is expected to streamline processing times significantly.

No, you do not need a solicitor. You can complain directly to your lender or use the Financial Ombudsman Service free of charge. However, using a regulated solicitor like Milberg London LLP (SRA 670230) can be helpful for complex cases or if your lender disputes the claim. Milberg is ranked by Legal 500 and Chambers and Partners for consumer group litigation. MotorRedress connects you with Milberg on a No Win No Fee basis.

You do not need any documents or paperwork. MotorRedress uses a soft credit search through Equifax and TransUnion to automatically locate your past and present motor finance agreements. You do not need your original finance agreement, account numbers, vehicle registration, or any other documentation. The soft search has zero impact on your credit score.

Yes, absolutely. You can claim regardless of whether you have finished paying off your finance or no longer own the vehicle. The claim is about the hidden commission embedded in your finance agreement, not the current status of the car or loan. Agreements dating back to 2007 may be eligible. Many successful claimants paid off their car finance years ago.

In October 2024, the Court of Appeal ruled in Johnson v FirstRand and Hopcraft v Close Brothers that motor finance lenders had acted unlawfully by paying secret commissions to car dealers without the knowledge or informed consent of the borrower. The Supreme Court upheld this in [2025] UKSC 33, confirming that Discretionary Commission Arrangements (DCAs) were unlawful. This landmark decision affects an estimated 14.2 million finance agreements in the UK and has prompted lenders to set aside over £8.2 billion in provisions.

Yes, making a PCP claim is entirely safe. The eligibility check uses a soft credit search which has zero impact on your credit score and is invisible to other lenders. Your personal data is protected under GDPR and encrypted with 256-bit SSL. Milberg London LLP is regulated by the Solicitors Regulation Authority (SRA 670230), ranked by Legal 500 and Chambers and Partners. MotorRedress operates on a No Win No Fee basis, so there is no financial risk to you.