If you’ve financed a car through a Personal Contract Purchase (PCP), you may be owed money. Many UK car buyers mis-sold their agreements, often without full disclosure of commission charges or unfair terms. A PCP claims calculator helps you estimate how much you could reclaim if you were mis-sold a deal.
How Does a PCP Claims Calculator Work?
A PCP claims calculator works by assessing key factors, including your initial deposit, monthly payments, interest rates, and the total cost of the car. It then compares this against industry standards and any potential overcharges. If your agreement involved hidden commissions or unfair terms, the calculator provides an estimate of your potential claim.
Most claims calculators use Financial Conduct Authority (FCA) guidelines and legal precedents to determine whether you could be entitled to compensation. The final amount depends on the level of mis-selling and how much you overpaid.
Why Are PCP Claims Important?
The FCA found that some car dealers and lenders failed to disclose high commission rates that inflated customer payments. Between 2015 and 2019, over 40% of PCP agreements included commission structures that encouraged lenders to set higher interest rates. This unfair practice led to consumers paying thousands more than necessary.
If you were not informed about commission fees, your agreement may have been mis-sold. This means you could be eligible to claim back the difference between a fair rate and what you actually paid. Using a PCP claims calculator is a simple way to check your eligibility before making a formal claim.
How to Use a PCP Claims Calculator
Using a PCP claims calculator is straightforward. You need to enter details such as:
- The amount you borrowed
- Your deposit and monthly payments
- The length of your agreement
- The interest rate applied
Once you submit these details, the calculator provides an estimate of what you could reclaim. If you have supporting documents like your finance agreement and payment history, you may get a more accurate result.
What Happens After You Use a PCP Claims Calculator?
If the calculator suggests you may have a claim, the next step is to contact a financial claims specialist or legal expert. They can help you submit a formal complaint to your lender, using FCA rules to support your case. If your lender rejects the claim, you can escalate it to the Financial Ombudsman Service (FOS), which handles disputes between consumers and finance companies.
Key Statistics on PCP Claims
- The FCA banned discretionary commission models in January 2021, stopping lenders from inflation interest rates.
- Over 5 million UK car buyers used PCP financing in the past decade, many unaware of hidden fees.
- The average successful PCP claim refund is between £1,000 and £5,000, depending on the case details.
Should You Make a PCP Claim?
If you suspect you were mis-sold a PCP deal, it’s worth checking your eligibility. The claims process can take time, but successful cases result in refunds or reduced loan balances. A PCP claims calculator is the best starting point to see if you have a case.
Final Thoughts
PCP mis-selling has affected thousands of UK drivers, and many are now reclaiming their money. If you think you overpaid due to hidden commission charges, use a PCP claims calculator to check your potential refund. The sooner you act, the better your chances of recovering what you’re owed.
