PCP Finance Claims Process

Due to the current FCA review into discretionary commission arrangements (DCAs), firms (motor finance brokers, lenders and manufacturers) do not have to provide a “Final Response Letter” to any complaint submitted until December 2025.

Although each case may have different facts and circumstances, generally the complaint process is as follows:

1. You make contact with a motor finance broker, lender, or manufacturer.
2. Check to see if you have ever taken out a PCP or HP finance deal (note, also check if you have taken out multiple deals). You can do this by contacting them in the first instance.
3. If it is confirmed that you do have a PCP or HP finance arrangement THAT CONTAINS a discretionary commission agreement (DCA), then you may be eligible to submit a complaint. However, you need to check that the PCP or HP agreement was taken out before 28 January 2021.
4. On receipt of letter of authority, they can then request your files from any firms that we believe hold information necessary to pursue your claim. If you already have the information they need, then providing copies of this can save a lot of time.
5. When the claims processor are in possession of all necessary documents, they can then assess you case in more detail and proceed to making a complaint to the firm if appropriate.
6. Once a form complaint has been lodged with the firm(s) subject to the complaint(s) the firm has 8 weeks to respond. If the response is unsatisfactory then the case can be escalated to the Financial Ombudsman Service (FOS) or The Pensions Ombudsman who both have the powers to enforce payment of compensation should they uphold your case.
7. In cases where the firm responsible was found to have give bad or negligent advice but has now ceased trading and cannot respond to a complaint, your claims processor can still pursue the claim through the Financial Services Compensation Scheme (FSCS) who can refund up to £85,000 per claimant in compensation for if your case meet all their eligibility criteria.