# Could I have been mis-sold PCP finance? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-27 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Are You Owed Money on PCP Finance? Check Your Eligibility Meta Description: Discover how to claim back money on mis-sold PCP finance in the UK. Find out if you're eligible to reclaim funds from your PCP agreement today. URL: https://financedigest.com/could-i-have-been-mis-sold-pcp-financehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-935741720-1736814958337-compressed.jpg) The FCA and Ombudsman have found that approximately 560,000 UK motorists(1) are eligible to claim back money on PCP finance, which is a form of credit used to finance vehicles. It is currently the most popular way to finance a vehicle, with 90% of cars in the UK being bought with PCP finance as of May 2022. ## What is PCP Finance? Personal [Contract](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html) Purchase (PCP) is a way to pay for a car which works similar to a long-term rental, allowing you to use the car until the contract ends. To begin, [drivers pay a deposit on their car](https://www.financedigest.com/pimp-my-ride-south-east-drivers-most-likely-to-modify-their-cars.html "Pimp my ride! South East drivers most likely to modify their cars"), which usually totals around 10-20% of the car’s total value. The remainder is then paid off over a [set period](https://www.financedigest.com/hybrid-cars-market-projected-to-rise-at-a-cagr-of-16-5-during-the-forecast-period-set-between-2016-2024-tmr.html "Hybrid Cars Market Projected To Rise At A CAGR Of 16.5% during the Forecast Period Set Between 2016-2024 | TMR"), month by month. This period can vary, but is often 3-4 years. At the end of the contract, you have three options: 1. Return the car to the lender 2. Make a balloon payment and keep the car 3. Use the resale value [towards purchasing a new car](https://www.financedigest.com/rising-concerns-towards-safety-of-child-are-expected-to-drive-demand-for-baby-car-seat-market.html "Rising Concerns Towards Safety Of Child Are Expected To Drive Demand For Baby Car Seat Market") with your provider ## What makes PCP finance different from a long-term rental? The monthly payments made in a PCP finance agreement are higher than the payments made on a [leased car](https://www.financedigest.com/4-things-to-do-if-you-run-into-problems-with-your-leased-car.html "4 Things to Do if You Run Into Problems With Your Leased Car"). However, a leased car must be returned at the end of a contract, but with PCP [finance the driver has more options](https://www.financedigest.com/7-finance-career-options-to-consider-and-what-you-need-to-know-about-each.html "7 Finance Career Options to Consider and What You Need to Know About Each"). Similar to renting a car, the driver doesn’t own the car for the duration of the contract, and is usually in the name of the PCP [provider until the final balloon payment](https://www.financedigest.com/nets-acquires-polish-online-payment-service-providers-dotpay-ecard-from-mci-capital.html "Nets acquires Polish online payment service providers Dotpay/eCard from MCI Capital") is paid. After this, the car can be transferred to the driver’s name. ## Why do people claim money on PCP finance? Many drivers have been mis-sold PCP [finance over the years](https://www.financedigest.com/2019-year-must-re-build-public-trust-finance.html "2019 is the year we must re-build public trust in finance"). The Financial Conduct Authority estimates this number to be over 560,000 and motorists can check their eligibility for a claim – [find out more information here](https://claimsbible.com/pcp-finance/)(2). People who claim [money on PCP finance](https://www.financedigest.com/student-finances-exposed-how-do-they-really-spend-their-money.html "Student finances exposed: How do they really spend their money?") believe that their seller did not explain important details such as fees, interest rates, and other costs. This can [end up costing drivers more than anticipated](https://www.financedigest.com/orthokeratology-market-is-anticipated-to-reach-beyond-us-88-million-by-the-end-of-2028.html "Orthokeratology Market is anticipated to reach beyond US$ 88 million by the end of 2028"). For example, many PCP providers failed to explain [hidden mileage costs](https://www.financedigest.com/the-hidden-costs-of-property-investment.html "The Hidden Costs of Property Investment") to buyers. This meant that for every mile driven [beyond a set](https://www.financedigest.com/five-technologies-set-to-impact-commercial-banking-in-2018-and-beyond.html "Five Technologies Set to Impact Commercial Banking in 2018 and Beyond") amount, usually hidden in the fine print, drivers were charged high fees. Many sellers have also felt pressured into loans that they could not afford. This includes lenders who withheld important [information about financial](https://www.financedigest.com/overcoming-information-overload-in-the-financial-sector.html "OVERCOMING INFORMATION OVERLOAD IN THE FINANCIAL SECTOR") alternatives, or who pressured buyers into purchasing add-ons such as unneeded insurance. ## Is there a deadline to claim PCP finance? Claims can be made for any [car bought within the last](https://www.financedigest.com/brand-loyal-brits-have-longer-relationships-with-their-car-than-their-last-lover.html "BRAND-LOYAL-BRITS HAVE LONGER RELATIONSHIPS WITH THEIR CAR THAN THEIR LAST LOVER") 10 years. ## How much can I win back with a PCP finance claim? The average amount that people can win back is around £3000, but people can even win compensation of up to £10,000. The amount of compensation you could win back depends on a number of factors such as the duration of the PCP agreement, the value of the vehicle, and the amount and interest that you have been mis-sold. ## How do I make a PCP finance claim? Gather whatever evidence you can. This [includes your original finance](https://www.financedigest.com/ing-toughens-oil-and-gas-policy-to-include-trade-finance-midstream.html "ING toughens oil and gas policy to include trade finance, midstream") agreement and any correspondence with lenders. Even your own personal testimony and documentation counts as evidence. Next, go through the complaints procedure with your lender. Only if they reject your request for help can you escalate the claim. After this, you can launch an investigation with the [Financial Ombudsman Service](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services"). ###### Source 1: https://www.fca.org.uk/publication/multi-firm-reviews/our-work-on-motor-finance-final-findings.pdf ###### Source 2: https://claimsbible.com/pcp-finance/ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---