PCP (Personal Contract Purchase) claims have surged as many UK drivers realise they were mis-sold car finance. Some firms promise quick payouts but often mislead claimants with hidden fees. Knowing how to spot a scam can save you time and money.
Understand How PCP Claims Work
PCP agreements involve monthly payments with a final balloon payment to own the car. Mis-selling occurs when lenders fail to disclose commission charges, unfair terms, or affordability risks. If your dealer didn’t explain these costs properly, you might have a valid claim.
Signs of a PCP Claims Scam
Many scammers target those seeking financial compensation. Warning signs include high upfront fees, pressure to sign quickly, and unrealistic success guarantees. Legitimate firms operate on a no-win, no-fee basis and provide clear terms before proceeding.
How to Verify a Claims Management Firm
Check if the company is authorised by the Financial Conduct Authority (FCA). Avoid firms using cold calls or unsolicited messages, as FCA regulations prohibit this. Reviews from independent sources can help verify legitimacy before signing anything.
Your Rights If You Were Mis-Sold Car Finance
If your lender failed to disclose essential details, you have legal grounds to claim compensation. The Financial Ombudsman Service (FOS) and the Financial Conduct Authority (FCA) regulate complaints and claims. Whether it’s a high commission fee or lack of transparency, you have the right to challenge unfair agreements.
Common PCP Claim Scams to Watch Out For
Some companies claim to handle your case but do nothing after charging a fee. Others may exaggerate your chances of success to lure you in. Always read the small print and confirm that no hidden charges apply before agreeing to any service.
How to Check If You Were Mis-Sold Car Finance
If your dealer didn’t fully explain commission structures or affordability risks, you could be eligible for a claim. Many people with mis-sold car finance Motonovo agreements found they paid more than necessary due to hidden fees. If this applies to you, seek FCA-regulated advice before proceeding with a claim.
Steps to Make a PCP Claim Safely
- Gather all finance agreement documents and emails related to your car purchase.
- Contact your lender and request details on any undisclosed commissions or hidden fees.
- If unsatisfied, escalate the case to the Financial Ombudsman Service (FOS).
- Avoid unregulated claims firms and always check their FCA authorisation before signing anything.
Conclusion
Scammers exploit financial vulnerabilities, so always verify any company before trusting them with your claim. If you were mis-sold car finance, go through official channels like the FCA or FOS. Protect yourself by doing research and avoiding firms that make unrealistic promises.
