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FCA Investigation Active

Were you mis-sold car finance?

Millions of UK consumers may have been overcharged on PCP and HP agreements due to hidden commission arrangements. The Supreme Court ruled this unlawful in 2024. Find out what you could be owed.

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Based on FCA published data
Free — no sign-up
Supreme Court ruling 2024
PCP Mis-Selling — Key Numbers
⚡ FCA Active
Estimated UK redress pool
£11bn+
Agreements potentially affected
14 million
FCA average overcharge estimate
£1,100
DCAs banned by FCA
Jan 2021
📡 Source: FCA Consumer Finance Review 2024 · Supreme Court ruling Oct 2024
£11bn
Redress pool (FCA est.)
14m
Agreements affected
£1,100
Average overcharge
6 yrs
Limitation period
2007–21
Agreements covered
Free
Initial assessment
Background

What is the PCP car finance scandal?

Between April 2007 and January 2021, many car finance agreements in the UK used a system called a Discretionary Commission Arrangement (DCA). Under a DCA, the car dealer could set — or increase — the interest rate on your finance agreement within limits set by the lender. The higher the rate they set, the more commission they earned.

This created a direct conflict of interest: dealers were financially incentivised to charge you more than necessary. The FCA found this practice caused widespread consumer harm and banned DCAs in January 2021.

In October 2024, the UK Supreme Court unanimously ruled that undisclosed commission arrangements were unlawful — paving the way for a mass consumer redress scheme that could total over £11 billion.

Who is eligible?

You may be eligible if you had a PCP or HP agreement arranged through a dealer between April 2007 and January 2021, and the finance involved a DCA.

Which products are covered?

Personal Contract Purchase (PCP), Hire Purchase (HP), and some conditional sale agreements. Not personal loans taken out directly with a bank.

What can I claim?

The difference between the interest rate you were charged and a fair rate — plus 8% statutory interest per year from the date of the overcharge.

Do I need a solicitor?

You can complain directly to your lender or the Financial Ombudsman for free. A solicitor or FCA-regulated CMC is optional but can help if your complaint is complex.

Free calculator

PCP compensation calculator

Enter your finance details to estimate how much you may have been overcharged. Based on FCA published methodology and average DCA uplift rates.

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PCP / Car Finance Calculator

Based on FCA average commission overcharge methodology

Your finance agreement
£
The loan amount, not the car price
%
As shown on your finance agreement
About your agreement
Estimated overcharge
—
commission uplift estimate
With 8% interest
—
statutory interest added
Claim viability
—
based on FCA criteria
Total interest paid (estimate)—
Estimated DCA commission uplift (~25%)—
Statutory interest at 8% p.a.—
Total estimated compensation—
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This is an estimate onlyThe actual overcharge depends on the specific commission rate applied to your agreement, which only the lender holds. A formal complaint will require the lender to disclose this. Our calculation uses the FCA's published average DCA uplift of approximately 25% of total interest charged.
Methodology: Overcharge estimated as 25% of total interest paid (FCA published average). Statutory interest at 8% per annum from mid-point of agreement to present. Estimates are indicative only and do not constitute legal advice.
Free specialist assessment
You may be owed significant compensation

Connect with an FCA-regulated specialist who handles PCP claims. Free initial assessment. No win, no fee available. No obligation to proceed.

FCA-regulated specialist
Free assessment
No win, no fee
Handles multiple agreements

Was the finance arranged through a dealer?

Step 1 of 4
Was the finance arranged through a car dealer?
Dealer-arranged finance is most likely to involve a discretionary commission arrangement.
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You look eligible to claim
Based on your answers, you appear to have one or more valid PCP claims. An FCA-regulated specialist will contact you — usually within 1 working day — to discuss your agreements in detail. No obligation to proceed.
Reference: — · Estimated value: —
✅ What happens nextThe specialist will request your agreement details, contact the lender on your behalf, and manage the complaint process. If successful, compensation is paid directly to you minus any agreed fee (typically 25–36% + VAT, capped).
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Pre-2007 agreements are less certain
The FCA's review primarily covers agreements from April 2007. Pre-2007 claims may still be possible under common law principles — a specialist can advise whether it's worth pursuing.
Reference: —
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Still worth exploringEven where the FCA's consumer duty regime doesn't apply, a secret commission claim under common law may still succeed. The Supreme Court's ruling applies broadly.
Affected lenders

Which lenders are involved?

The FCA's review covers all major motor finance lenders that operated DCAs. Below is a summary of the key lenders and the current status of their complaints handling:

Lender
Brand names
Status
Est. liability
Black Horse
Lloyds / Halifax
✓ Active review
£2–3bn
Santander Consumer
Santander
✓ Active review
£1–2bn
Close Brothers
Close Brothers Motor
✓ Active review
£400–800m
MotoNovo Finance
Aldermore
⏸ Complaints paused
£300m+
Moneybarn
Provident / Vanquis
✓ Active review
£200m+
FirstRand Bank
Wesbank / MotoNovo
✓ Active review
£1bn+
Volkswagen FS
VW / Audi / Seat / Škoda
⏸ Under FCA review
TBC

Status current as of May 2025. Subject to ongoing FCA review. Many lenders have paused complaint responses pending the FCA's formal redress scheme.

Key dates

How the PCP scandal unfolded

April 2007
FCA consumer credit regulation begins
The FCA (then FSA) begins regulating consumer credit. DCAs are widespread but not directly targeted.
2019
FCA review of motor finance market
The FCA launches a wide-scale review of motor finance practices and finds evidence of widespread consumer harm from DCAs.
January 2021
FCA bans discretionary commission arrangements
Following its review, the FCA prohibits DCAs from January 28, 2021. New motor finance agreements must use fixed commission models.
January 2024
FCA launches formal consumer redress review
The FCA announces a formal review and orders lenders to pause complaint responses while the redress framework is developed.
October 2024
Supreme Court rules commission unlawful
In a unanimous landmark ruling, the UK Supreme Court confirms that secret commission arrangements were unlawful — broader than even the FCA's DCA review. Estimated consumer redress increases to £11bn+.
2025 onwards
FCA redress scheme expected
The FCA is developing a consumer contact and redress scheme. Consumers are advised to register their interest with lenders and seek advice promptly.
Common questions

PCP claims — FAQs

What is a discretionary commission arrangement (DCA)?+
A DCA was a commission structure where car dealers could set or adjust the interest rate on a customer's finance agreement within limits set by the lender. The dealer earned more commission the higher the rate they set — creating a direct incentive to overcharge consumers. The FCA banned DCAs from January 2021 after finding this caused significant consumer harm.
How do I know if my agreement included a DCA?+
You won't be able to tell just from looking at your agreement. The DCA was an arrangement between the dealer and lender — not disclosed to you. To find out, you need to submit a Subject Access Request or formal complaint to your lender, who must disclose whether a DCA applied. Most affected lenders have teams handling such requests.
Can I claim for multiple car finance agreements?+
Yes — you can make a separate claim for each qualifying agreement. If you've had multiple cars on PCP or HP finance between 2007 and 2021, each one could represent a separate overcharge. Some consumers with multiple agreements have claims in the range of £3,000–£8,000+ when combined.
Can I claim if I financed through a car manufacturer's own brand?+
Yes — manufacturer-branded finance (e.g. BMW Financial Services, Volkswagen Financial Services, Ford Credit, Mercedes-Benz Financial Services) is typically provided through third-party lenders operating under DCA arrangements. If the finance was arranged through a dealer, it is likely covered by the FCA review regardless of the brand.
What is the difference between a DCA complaint and a broader commission complaint?+
The FCA's review initially focused on DCAs (agreements where the dealer could set the rate). The Supreme Court's 2024 ruling went further — finding that any undisclosed commission arrangement (where the consumer didn't know the dealer was being paid commission at all) could be unlawful. This potentially widens the scope of claims beyond just DCA agreements to any finance where commission was not clearly disclosed.
Do I need to use a claims management company (CMC)?+
No — you can complain directly for free. You can submit a complaint to your lender directly at no cost. If the lender rejects the complaint (or doesn't respond within 8 weeks), you can escalate to the Financial Ombudsman Service (FOS) for free. CMCs and solicitors can handle the process on your behalf but will charge a fee — typically 25–36% + VAT of any compensation received. This is a personal decision based on how comfortable you are managing the process.
Lender & topic guides

Detailed guides for your lender and situation

Black Horse
Black Horse (Lloyds) PCP Claim
Step-by-step guide, calculator, complaint address →
Santander
Santander Consumer Finance PCP Claim
Full guide + personalised calculator →
Close Brothers
Close Brothers Motor Finance Claim
FCA enforcement target — claim guide →
VW, Audi, SEAT, Škoda
Volkswagen Financial Services Claim
All VW Group brands — guide + calculator →
Education
What is a DCA? Plain English Guide
How the hidden commission system worked →
Eligibility
Am I Eligible? — Interactive Checker
5-question eligibility check — 2 minutes →
⚠ Deadline
PCP Claim Deadlines — Time Limit Guide
6-year and knowledge-based limits explained →
Supreme Court
October 2024 Ruling — What It Means for You
Landmark judgment explained in plain English →
Payout guide
Average PCP Compensation — How Much Could You Get?
Why £1,100 is just the average →
Disclaimer: ClaimValue provides estimates for information purposes only based on FCA published methodology. This is not legal or financial advice. Actual compensation depends on the specific details of your agreement, lender practices, and the outcome of the FCA's formal redress process. Always consult an FCA-regulated solicitor or CMC before proceeding. ClaimValue is not regulated by the FCA or SRA.
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