⏰ FCA Redress Scheme expected 2026 — The more you know, the stronger your claim. Start below.

PCP Car Finance Claims Guide — Everything You Need to Know

From understanding what went wrong to estimating your compensation, this guide covers every aspect of the UK's biggest consumer finance scandal since PPI. Covering 14.2 million agreements, £30bn+ in potential redress.

14.2M
UK agreements affected
£700
Average compensation estimate
£30bn+
Total estimated industry redress
2007
When it started — qualifies through 2021

How the PCP Scandal Unfolded — A Timeline

April 2007
Start of the Qualifying Period
Finance agreements from this date onwards fall within the FCA's review of discretionary commission arrangements (DCAs) in motor finance.
January 2021
FCA Bans Discretionary Commission Arrangements
The FCA prohibited DCAs following its review finding that consumers paid an average of £1,100 extra in interest due to the practice. End date of qualifying agreements.
January 2024
FCA Opens Industry-Wide Investigation
The FCA announces a formal review of historical DCA motor finance, pausing complaint time limits to allow a coordinated industry response.
October 2024
Hopcraft v Close Brothers — Court of Appeal Ruling
Landmark ruling finding that undisclosed commission arrangements were unlawful — affirming the basis for consumer compensation claims. Close Brothers suspends lending.
November 2024
UK Supreme Court Confirms Mis-Selling
The Supreme Court upholds the Court of Appeal ruling, confirming the legal basis for consumer claims. Lenders begin announcing major financial provisions for expected redress.
2026 (Expected)
FCA Redress Scheme Opens
The FCA is expected to launch a formal consumer redress scheme requiring lenders to proactively identify and compensate affected customers — similar in structure to the PPI scheme.

Everything You Need to Know — Article by Article

Our guides are written by specialists in consumer finance law and FCA regulatory affairs to give you accurate, actionable information.

What Is PCP Car Finance Mis-Selling? A Plain-English Explanation
What went wrong, who is affected, and why the courts agreed you were overcharged. Covers how discretionary commission arrangements (DCAs) worked in practice — and why they were banned.
The FCA Motor Finance Redress Scheme 2026 — What to Expect
What the FCA's forthcoming redress scheme will look like, how it will work, who it covers, estimated timelines, and what you need to do now to secure your position in the earliest settlement batch.
Discretionary Commission Arrangements (DCAs) Explained
A detailed breakdown of how DCA schemes operated: what "discretion" actually meant, how dealer commission was calculated, what the FCA found, and why the courts ruled them unlawful. Includes worked examples showing the financial impact on a typical £15,000 PCP agreement.
The Hopcraft Ruling Explained — Why October 2024 Changed Everything
The Court of Appeal's landmark judgment in Hopcraft v Close Brothers & others established the legal basis for all PCP claims. This guide explains what the court decided, what "secret commission" means in law, and why the Supreme Court's confirmation matters for your claim.
How Long Does a PCP Car Finance Claim Take?
A realistic breakdown of the claims timeline — from registering your interest to receiving payment. Covers the FCA scheme, direct lender complaints, Financial Ombudsman escalation, and what "expected 2026" actually means in practice for your settlement date.
Can I Claim PCP Compensation Without a Solicitor?
Yes — but should you? This guide honestly compares the DIY route (free but complex) with using a regulated claims service. Covers what lenders require, how DSARs work, the Financial Ombudsman process, and where professional help genuinely adds value.
Is PCP Compensation Taxable? The Tax Implications Explained
Do you pay tax on your PCP redress payment? The short answer depends on whether your payment includes interest — and what type. This guide covers HMRC's position, the treatment of statutory interest on claims, and what to declare (and what not to). Always consult a tax adviser for your personal situation.
Which Car Finance Lenders Are Affected by PCP Mis-Selling?
The complete list of UK motor finance lenders subject to the FCA review — including provisions set aside, court exposure, and status of investigations. Covers Black Horse (£1.95bn), Santander (£461m), Barclays (£325m), Close Brothers (£300m), BMW (£207m), MotoNovo (£73m) and more.
How Much Am I Owed? Estimating Your PCP Claim Value
The average is £700 — but your figure could be higher or lower depending on your finance amount, interest rate, term length, and lender. This guide explains how compensation is calculated and links to our interactive calculator for a personalised estimate based on your actual agreement details.
PCP vs HP: Does the Type of Finance Affect My Claim?
Both PCP (Personal Contract Purchase) and HP (Hire Purchase) agreements may qualify for compensation if a discretionary commission arrangement was used. This guide explains the difference between the two products, which is more commonly affected, and whether your specific agreement type impacts your eligibility or claim value.

PCP Claims — Most Common Questions

What is PCP car finance mis-selling?+
PCP mis-selling refers to car dealers using discretionary commission arrangements (DCAs) to set higher interest rates on your finance — earning themselves more commission — without disclosing this conflict of interest to you. The FCA found that affected customers paid an average of £1,100 extra in interest. The Supreme Court confirmed in November 2024 that this practice was unlawful.
What is the FCA motor finance redress scheme?+
The FCA (Financial Conduct Authority) is expected to launch a formal consumer redress scheme in 2026 requiring lenders to proactively identify and compensate customers affected by DCAs between April 2007 and November 2021. The scheme follows the Supreme Court's ruling and is expected to be modelled on the PPI compensation programme — the largest consumer redress exercise in UK history.
What is a discretionary commission arrangement (DCA)?+
A DCA is a system where car dealers were allowed to set the interest rate on your finance agreement within limits set by the lender. Crucially, the dealer's commission was directly linked to the rate — the higher the rate, the more commission the dealer earned. This was a direct financial incentive to overcharge you, and it was never disclosed. The FCA banned DCAs in January 2021.
How long does a PCP car finance claim take?+
It depends on the route. Registering with MotorRedress now places you in the queue for the FCA's 2026 redress scheme — when it opens, lenders will be required to contact affected customers. Direct complaints to lenders currently take 8 weeks for a first response, with Financial Ombudsman referrals adding 3–6 months. Registering early puts you first in line.
Do I need my original finance documents to make a claim?+
No. You do not need to have kept your original paperwork. Our legal partner can submit a data subject access request (DSAR) to your lender, who is legally required to provide complete records of your agreement including all commission information. All you need to start is the approximate date of your agreement and the lender or car brand.
Is PCP compensation taxable?+
The main redress payment (the return of overcharged commission) is generally not taxable income. However, any statutory interest added to your compensation may be subject to income tax above the personal savings allowance (£500 for basic rate taxpayers in 2026/27). HMRC has confirmed it is monitoring the scheme — we recommend consulting a tax adviser for your personal position.

Ready to Check Your Claim? It Takes 60 Seconds

Everything you've read here points to one conclusion: if you had dealer-arranged car finance between 2007 and 2021, you should check your claim. It's free, takes 60 seconds, and there's no obligation.

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