PCP car finance claims have quickly become one of the biggest financial compensation stories in the UK since the PPI scandal. The Financial Conduct Authority (FCA) believes that up to 12 million motorists could potentially have been affected by unfair commission arrangements linked to car finance agreements taken out between 2007 and 2024.
Many drivers are now discovering that dealerships and lenders may not have properly explained how commission was being earned on their finance agreement. In some cases, higher interest rates may have been applied because dealers received larger commissions from lenders.
As a result, millions of people across the UK may now be entitled to compensation. Current estimates suggest the average payout could be around £830 per vehicle, although some claims may be worth significantly more depending on the finance agreement and how much interest was paid.
One of the biggest questions people are now asking is what paperwork they actually need in order to make a PCP car finance claim.
Key Points
- Having the original car finance agreement, proof of ID, vehicle reg and any bank statements showing payments will be useful
- But, car finance claim companies can find this data for you
- Claims companies can also find the details of motorists who are deceased
- Claims companies can charge 20% to 30% commission to help you process successful claims
- Original car finance agreement
- Proof or identity or address
- Vehicle registration number
- Bank statements showing car finance payments
- Any agreements on upgrading or refinancing the vehicles
According to this guide from Claim Smart, the good news is that you may not need every single document connected to the vehicle purchase in order to start a claim. However, the more information you can provide, the easier it may be for lenders or claims companies to investigate your agreement.
Original finance agreement – This shows the details of the lender, the vehicle, the agreement dates and the monthly repayment amounts. It may also include details about the interest rate and any commission arrangements connected to the deal. Many people still have copies of these agreements stored in emails, online finance accounts or old paperwork folders at home.
Proof of identity and proof of address – This could include a passport, driving licence or utility bill.
Vehicle registration number – Even if you no longer own the vehicle, the registration can help lenders trace the agreement more quickly.
Bank statements – to help support a claim, showing monthly finance payments being made to the lender. Some people may also have settlement letters, vehicle invoices or dealership paperwork which can help confirm the details of the agreement.
If you refinanced, upgraded or changed vehicles during the finance period – it is worth gathering those agreements too. Many people had more than one PCP agreement over the years without realising each individual agreement could potentially qualify for compensation.
Do You Need the Original PCP Car Finance Agreement?
Not necessarily. A lot of people are worried because they no longer have paperwork from agreements taken out many years ago. However, lenders often still hold records of old agreements, particularly where the finance was active after 2007.
In many cases, consumers can begin the claims process using basic information such as their name, address history, approximate agreement dates and vehicle details.
The lender may then be able to locate the agreement internally.
This is particularly important because many PCP agreements were signed more than 10 or even 15 years ago, meaning paperwork may naturally have been lost or destroyed over time.
Can a Claims Company Find the Documents for Me?
Yes, in some situations a claims management company may be able to help locate missing paperwork on your behalf.
Many claims firms work with specialist tracing systems that can search historic finance agreements using details such as your name, previous addresses and vehicle registration numbers.
This can be useful for people who have changed address several times, lost access to old email accounts or no longer remember which lender they used.
Some companies may also contact lenders directly to request copies of agreements and supporting documents. This can reduce the amount of work involved for consumers who feel overwhelmed by the process.
However, it is important to remember that claims companies often charge fees if your claim is successful. These fees can sometimes range between 20% and 30% of any compensation awarded.
Because of this, some people prefer to contact lenders directly and gather the documents themselves in order to keep the full amount of any compensation.
Can a Claims Company Find the Documents of a Relative Who Is Deceased?
In some cases, yes. Claims companies and lenders may still be able to trace finance agreements belonging to relatives who have passed away.
This has become an increasingly important issue because the FCA investigation covers agreements dating back to 2007. During that time, many customers who took out PCP finance may sadly no longer be alive.
Families or executors of estates may still be able to investigate whether compensation is owed to the deceased person’s estate.
To do this, additional paperwork is usually required. This may include a death certificate, probate documents or proof that the person handling the claim has legal authority to act on behalf of the estate.
Claims companies may sometimes assist families with tracing older agreements where very little paperwork remains. This can be particularly helpful where relatives are unsure which dealership or lender was originally used.
Is It Worth Checking Old PCP Car Finance Agreements?
One of the key things many people are now realising is that they may have had several PCP agreements over the years without thinking twice about them.
Because PCP became one of the most common ways to finance vehicles in the UK, drivers who regularly changed cars may have entered into multiple agreements between 2007 and 2024.
Even if you no longer own the vehicle, have finished paying the finance, or cannot immediately find all the paperwork, it may still be worth investigating whether you could be eligible for compensation.
With average payouts currently estimated at around £830 per vehicle, multiple successful claims could potentially add up to a significant amount for some households.
