Personal Contract Purchase (PCP) agreements have been a popular way to finance cars. However, many people mis-sold these agreements without clear explanations of costs, commissions, and options. If you took out a PCP deal, you might be entitled to compensation. This guide will help you check if you qualify and explain how to claim for free.
What Is a PCP Claim?
PCP claims arise when lenders fail to disclose key details about car finance agreements. Many customers were not told about hidden commissions, unfair interest rates, or how balloon payments affect costs. The Financial Conduct Authority (FCA) has been investigating these practices, and compensation claims are increasing.
If a lender failed to explain the commission paid to car dealers, it could have influenced the interest rate you received. This lack of transparency is now grounds for a claim. The good news? You can check your eligibility in minutes.
Who Can Claim for PCP Compensation?
You may be eligible for a PCP refund if:
- You took out car finance through a dealer or broker.
- Your agreement included a commission that was not disclosed.
- The lender failed to explain your repayment options clearly.
Even if your PCP deal has ended, you could still have a valid claim. Many claims are being approved for agreements dating back several years.
How to Check If You Can Claim for Free
Checking if you qualify is simple and does not require expensive legal help. Follow these steps:
- Find your agreement – Look for your car finance contract and review the terms.
- Check for commissions – If commission details are missing, you could have a case.
- Use a free claims checker – Online tools can help determine your eligibility.
Lenders have set aside millions for potential refunds, so it’s worth checking. A successful claim could result in a refund of overpaid interest and fees.
How Much Could You Be Owed?
Compensation amounts vary based on the loan size, interest rates, and hidden commissions. Some claims have resulted in payouts of £1,000 to £10,000. The exact figure depends on how much extra you paid due to undisclosed commissions.
Many lenders, including banks and finance providers, have already started settling claims. If you were mis-sold a deal, you have a legal right to seek redress.
Motonovo Finance Compensation and Other Lenders
Motonovo Finance is one of several lenders facing compensation claims for undisclosed commissions. If you had a PCP agreement with them, you should check if you were affected. Many claims have been approved for customers who were unaware that brokers earned extra from their finance deals.
Similar cases involve other major lenders, so even if your finance provider was different, you may still qualify. The process is straightforward and free to check.
What to Do Next
If you suspect you were mis-sold a PCP deal, don’t delay. The claims process is simple, and you don’t need to pay upfront fees. Here’s what to do:
- Check your agreement – Look for missing commission details.
- Submit a claim – Use a free claims service or contact your lender directly.
- Wait for a response – Lenders typically reply within 8 to 12 weeks.
Many people are receiving refunds, so it’s worth checking. If your claim is successful, you could get back thousands in overpaid interest.
Final Thoughts
PCP mis-selling has affected thousands of drivers, but compensation is available. If you believe you were misled, checking your eligibility is free and easy. Don’t let finance providers keep money that rightfully belongs to you—take action today.
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