Over the last 25 years, the ambulance chasing claims management companies have emerged offering to help us get compensation over personal injuries, the huge PPI storm, loan refunds and now more recently PCP car finance claims, which the regulator says affects up to 12 million people in the UK.
But whilst you might be hearing jingles on the radio, adverts on TV and getting direct emails and whatsapp messages, it is important to know that you can actually make these claims yourself or you can use a claims management company for convenience, but consider that you might be giving up commission in the process.
The rise of PCP car finance claims
Over the past year, more people in the UK have been contacted about possible compensation linked to mis-sold PCP car finance agreements. With 9 out of 10 cars in the UK likely purchased using PCP finance, the chances are that if you purchased a car through finance during 6th April 2007 and 28th January 2021 (Source: Claims Smart)
But with a deadline for making a claim, you will likely be receiving letters, emails, and even text messages with promises of payouts from solicitors and third party claims companies, often suggesting you could receive on average £829, which is the latest figures in March 2026.
It sounds appealing, especially during a time when many households are looking for extra financial support.
However, it is important to note that you may be charged a fee for allowing them to broker the deal for you - and this is commonly between 20% and 30% of your compensation. For example, if you are awarded £800, you could lose up to £240 of it in fees.
This naturally raises an important question: do you actually need these companies, or can you make a claim yourself?
Understanding PCP finance claims
Personal Contract Purchase (PCP) agreements are pretty much the most common way to buy a car through finance in the UK, with a small deposit, a monthly repayment and a 3-4 year term allowing you to pay off in full via a balloon payment or simply give back the car and restart again.
However, over more or less the last 20 years, customers were not properly informed about commission structures or were given unclear information about interest rates. As a result, regulators have started looking more closely at how these deals were presented.
Recent data from the Financial Conduct Authority (FCA) suggests that the average UK household may have around 2.5 potentially mis-sold financial agreements during this period. This includes car finance deals, even for individuals who may no longer be alive, meaning families could still have grounds to investigate past agreements.
Why companies are contacting you about mis-sold car finance
Claims management companies are actively reaching out because they see an opportunity. With millions of PCP agreements in place over the years, even a small percentage of successful claims represents a large commercial opportunity.
These companies offer to handle the entire process for you. They gather your information, submit the claim, and communicate with lenders. For some people, this convenience is appealing, especially if they feel unsure about dealing with financial institutions.
In fact, some companies can run a search and help you find documents for you, and relatives, that you possibly cannot find and need to proceed. The ruling applies for deceased relatives too, as long as it dates back to 2007.
Can you make a PCP claim yourself?
Yes, it is possible to make a PCP car finance claim yourself and you can follow the instructions on the FCA’s website, the finance lender’s website or the website of Martin Lewis. By following the instructions closely and gathering your information, whilst a little longer and maybe somewhat daunting, you could hypothetically keep the entire compensation, which could be as much as £2000 in some cases, or add up if you have multiple claims.
So why use a claims company for PCP car finance?
Using a claims company can reduce the workload of gathering the documents and they can ultimately streamline your application. By formatting the claim in the right way, it could maximise your chances of the claim being successful and getting paid the maximum amount.
A claims company can handle the paperwork and may have experience dealing with lenders, which could hypothetically improve your chances of success.
Things to consider before deciding
Before choosing a route, it is worth taking some time to read up on your options. Understanding the process will help you decide whether you feel comfortable handling it yourself.
You should also check the terms of any claims company carefully. Some may charge fees even if your claim is unsuccessful, while others only take payment if you win.
Another important point is to look back at all your agreements, not just recent ones. Given the FCA’s findings, there is a possibility that multiple finance deals could be affected. This includes agreements taken out many years ago.
If a family member had a PCP agreement and has since passed away, it may still be possible to investigate whether compensation is due.
Weighing up the options
The rise in PCP finance claims means there is a real opportunity for people to recover money they may be owed. While the offers from claims companies can be tempting, it is important to understand the full picture.
You do not have to pay someone else to make a claim on your behalf. With the right guidance, you can do it yourself and keep the full amount of any compensation.
At the same time, there is no one-size-fits-all answer. Some people will prefer the ease of using a company, while others will choose to handle it independently.
The key is to stay informed, weigh up the costs and benefits, and make a decision that suits your situation.