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Spotlight on PCP Claims: Could You Be Owed Compensation?

At SJS Legal, we’re committed to helping clients navigate complex legal matters. Since 2022, one area we have focused on is Personal Contract Purchase (PCP) car finance agreements.

If you entered into a PCP agreement between 2007 and the end of January 2021, you might be eligible for compensation. PCP agreements, a popular method of financing vehicles, have come under increasing scrutiny in recent years due to concerns about unfair practices specifically those with Discretionary Commission Arrangements – or known as DCAs.

Our dedicated team of specialists already have experience in dealing with these claims through the Court process and achieved some positive outcomes for our clients. The Court of Appeal have recently ruled in favour of Claimants that it was unlawful to for lenders to have paid undisclosed commission. The Lenders now seek to petition to the highest Court in the land – the Supreme Court – to challenge that decision. The legal battle is hotting up but they could be liable for millions if not billions in compensation.

Now, with the highly anticipated Supreme Court decision, the Barclays Judicial Review against the Financial Ombudsman who also held that the Lender acted unfairly, and further updates expected from the Financial Conduct Authority (FCA) , there’s never been a better time to explore your potential claim.

What You Need to Know

If you financed a car using a PCP agreement during the specified period, you may have grounds for compensation due to issues like:

  • Mis-selling of finance agreements.
  • Undisclosed commission payments.
  • Lack of transparency regarding the terms of the agreement.

The U.K.’s City watchdog, the Financial Conduct Authority, banned such deals in 2021. The FCA is now considering whether to introduce a consumer redress scheme for Discretionary Commission Arrangements and will announce its findings in May 2025.

Why Act Now?

The legal landscape around PCP agreements is evolving rapidly, and the outcomes of upcoming cases could directly impact your claim. By acting quickly, you can ensure your case is assessed before any potential deadlines or changes in eligibility.

You can bring your own complaint, but we strongly recommend you seek legal advice given the potential challenges to ensure the best outcome for your complaint.

How We Can Help

At SJS Legal, we offer a free, no-obligation review of your PCP agreement to determine whether you may be entitled to compensation on a no-win no-fee basis. With our experience and proven track record, you can trust us to guide you through the process.