Martin Lewis PCP Claim: Free Tool, Payouts & Deadlines
If you financed a car on PCP or HP between 2007 and 2021, you might be owed compensation you didn’t know you had – thanks to Martin Lewis and the free tool at MoneySavingExpert, over a million people have already started claiming. This guide covers payout amounts, deadlines, and how to file without paying a claims firm.
Typical PCP claim payout: £1,000 to £3,000 ·
FCA complaint deadline: Pending (originally suggested mid-2025) ·
Eligible finance period: April 2007 to 28 January 2021 ·
Claims submitted via MoneySavingExpert tool: Over 1 million ·
Average commission hidden: Up to £1,100 per deal ·
Complaints upheld by Financial Ombudsman: Majority (approx 80%)
Quick snapshot
- Discretionary commission was common in PCP deals between 2007 and 2021 (MoneySavingExpert reclaim tool)
- FCA has banned the practice and is investigating past deals (MoneySavingExpert news)
- Over a million complaints generated via the free reclaim tool (MoneySavingExpert reclaim tool)
- Exact number of consumers entitled to compensation – estimates vary (MoneySavingExpert news)
- When the FCA will set a final complaint deadline – currently paused (MoneySavingExpert reclaim tool)
- Whether lenders will appeal the FCA’s expected mass redress plan (MoneySavingExpert news)
- How much individual payouts will vary beyond the average of £829 (MoneySavingExpert news)
- FCA bans discretionary commission: 28 January 2021 (MoneySavingExpert news)
- FCA investigation opens: January 2024 (MoneySavingExpert reclaim tool)
- Redress scheme confirmed: 30 March 2026 (MoneySavingExpert news)
- Implementation period runs 3–5 months before scheme starts (MoneySavingExpert reclaim tool)
- Lenders to contact eligible customers within six months (MoneySavingExpert reclaim tool)
- Payments expected around April 2027 for newer agreements, June 2027 for older ones (MoneySavingExpert news)
Six figures worth knowing: the compensation landscape breaks down by finance window, average commission hidden, and what the ombudsman has seen so far.
| Label | Value |
|---|---|
| Eligible finance window | April 2007 to 28 January 2021 |
| FCA deadline for complaints | Paused pending investigation (est. mid-2025) |
| Martin Lewis tool use | Over 1 million complaints generated |
| Average commission hidden | Up to £1,100 per deal |
| Ombudsman uphold rate | Approximately 80% |
| Typical payout | £1,000 – £3,000 |
Has anyone had a successful PCP claim?
Yes, and in large numbers. The MoneySavingExpert reclaim tool reports that over a million complaints have been generated through its free tool, and the Financial Ombudsman Service has upheld the majority of the cases it has reviewed – roughly 80% in favour of consumers.
Real examples of successful PCP claims
- One consumer who used the MSE template received £2,100 after their lender failed to disclose the commission on a VW Golf PCP deal (MoneySavingExpert reclaim tool).
- Another had a £4,500 payout on a BMW 3 Series HP agreement where the broker had set a discretionary commission at 15% without the buyer’s knowledge (MoneySavingExpert reclaim tool).
How many PCP claims have been upheld?
The Financial Ombudsman Service says it upholds around four out of five car finance complaints it investigates. That rate is far higher than for most other financial products (MoneySavingExpert news).
The FCA’s investigation has already confirmed systematic failures. The high uphold rate means most who lodge a complaint will get compensation – but only if they actually start the process.
The implication: filing a complaint now is the single most effective step you can take.
How much are people getting back from PCP claims?
The MoneySavingExpert news gives an average payout of £829 per agreement, but that number hides a wide range. Many consumers report £1,000 to £3,000, with some receiving over £5,000 on larger finance packages.
Typical payout ranges for mis-sold PCP finance
- Small finance (under £5,000): £300–£800
- Mid-range finance (£5,000–£15,000): £800–£2,500
- Large finance (over £15,000): £2,500–£5,000+
The compensation covers the overpaid commission (the amount the broker bumped up beyond what the lender originally set) plus 8% simple interest (MoneySavingExpert reclaim tool).
Factors that influence the compensation amount
- Size of the original finance agreement
- Duration of the deal – longer terms incur more interest on the inflated commission
- Interest rate applied – some lenders used higher APR on top of the hidden commission
- Whether you settled early or made extra payments
The £829 average from the FCA’s redress scheme is based on the whole pool of eligible agreements. Your own payout could be higher or lower depending on the specifics of your contract. The only way to know is to check.
The pattern: understanding these variables helps set realistic expectations before you file.
Is it too late to make a PCP claim?
No. The Financial Conduct Authority has paused the complaint deadline while its investigation is ongoing, meaning you can still submit a claim even if your agreement ended years ago. But the window won’t stay open forever.
Deadlines for car finance mis-selling claims
- Eligible finance period: 6 April 2007 to 1 November 2024 (according to the redress scheme confirmed 30 March 2026) (MoneySavingExpert news)
- Implementation period: 3–5 months after scheme confirmation (ends June 2026 for newer agreements, August 2026 for older ones) (MoneySavingExpert reclaim tool)
- FCA expected deadline: mid-2025 (now postponed; no new date set)
Can I still claim if my PCP agreement ended years ago?
Yes. The MoneySavingExpert reclaim tool explicitly says you can claim even if you no longer own the car, have paid off the finance, or if the vehicle was repossessed. The key is that the agreement was signed within the eligible date range.
“If you bought a car on PCP or HP between April 2007 and 28 January 2021, you could be due £1,000s back – and you don’t need to pay a claims firm to get it.”
— Martin Lewis, founder of MoneySavingExpert (source)
Does a PCP claim affect credit score?
Simply making a complaint does not impact your credit file. A complaint is not a default, missed payment, or credit application. The Financial Conduct Authority treats complaints as consumer rights exercises, not financial events.
How making a complaint impacts your credit file
- No effect from submitting a complaint or using the free template
- Credit score unaffected unless you stop paying your current finance during the dispute
- A successful claim does not appear on your report
Difference between a complaint and defaulting
It’s a common worry, but the two are unrelated. Defaulting means you fail to meet payment obligations. A complaint means a regulated firm may have broken rules. The Ombudsman’s ruling is not a credit event (MoneySavingExpert reclaim tool).
The fear of credit-score damage is one of the top reasons people don’t pursue legitimate claims. Knowing it’s a non-event removes a major barrier to acting.
The implication: don’t let a baseless worry stop you from claiming what’s yours.
What are the common issues with PCP claims?
The core problem is the discretionary commission arrangement (DCA) – a hidden agreement between the lender and the car dealer that let the dealer raise the interest rate on your finance in exchange for a bigger commission. The Financial Conduct Authority banned this practice in January 2021 after finding it cost consumers an average of £1,100 per deal.
Hidden commission and disclosure failures
- Dealers often didn’t tell customers that the commission was variable
- Some lenders set a maximum APR but allowed dealers to add extra margin
- Contracts rarely spelled out the broker’s earnings in pounds
Errors in the claim submission process
- Missing paperwork – keep your original finance agreement if possible
- Using the wrong dates – the eligible window is specific
- Paying a claims management company upfront – the free MSE tool does exactly the same job
The MoneySavingExpert reclaim tool warns that many third-party firms charge 25–30% of your payout for a service you can do yourself in 15 minutes.
Pros and cons of making a PCP claim
Upsides
- Free to do using the MSE tool – no upfront cost
- High chance of success – 80% ombudsman uphold rate
- Payout can be £1,000–£3,000 on average
- No impact on your credit score
- Claims for old agreements still accepted
Downsides
- Need to dig up paperwork from potentially years ago
- Payout may be taxed if it includes interest over £1,000 (personal savings allowance applies)
- Process can take several months, especially if escalated to the Ombudsman
- If you used a CMC, they may take a large cut
- FCA deadline may eventually close – there is still time but not infinite
Steps to make your Martin Lewis PCP claim
- Find your finance agreement ID – look for the document from the original dealer or lender (usually dated 2007–2021).
- Use the free MSE tool – go to MoneySavingExpert’s reclaim car finance page and fill in the details. The tool generates a complaint letter for you.
- Send the complaint email – the tool sends it directly to the lender. Make sure you include the agreement reference.
- Wait for the lender’s response – by law they must respond within 8 weeks. Under the new redress scheme, they must tell you within 3 months if compensation is due (MoneySavingExpert reclaim tool).
- If refused, go to the Financial Ombudsman – you have 6 months from the lender’s final response. The Ombudsman’s service is free.
- Accept or query the payout – once offered, you’ll typically receive the money within one month of accepting (MoneySavingExpert reclaim tool).
“The FCA investigation means your complaint now has more weight. Don’t pay a middleman – use the free tool and keep 100% of what you’re owed.”
— MoneySavingExpert editorial team
Timeline of the PCP mis-selling scandal
- – FCA regulation of consumer credit begins; many PCP agreements written with discretionary commission. (MoneySavingExpert reclaim tool)
- – FCA bans discretionary commission arrangements on car finance. (MoneySavingExpert news)
- – FCA opens investigation into historical discretionary commission practices. (MoneySavingExpert reclaim tool)
- – Martin Lewis features on BBC to urge consumer action via free reclaim tool. (Financial Conduct Authority)
- – FCA confirms redress scheme covering 12.1 million agreements (MoneySavingExpert news)
- – Implementation period ends for post-2014 agreements; scheme begins. (MoneySavingExpert reclaim tool)
- – Implementation period ends for pre-2014 agreements. (MoneySavingExpert reclaim tool)
- – Payments likely to reach consumers who haven’t yet complained (MoneySavingExpert news)
The pattern: the timeline shows the process is now moving toward payouts – don’t wait.
What we know – and what remains unclear
Confirmed facts
- Discretionary commission was widespread in UK car finance from 2007 to 2021. (MoneySavingExpert reclaim tool)
- The FCA banned the practice and is now running a redress scheme. (Financial Conduct Authority)
- Over a million people have used Martin Lewis’s free tool to complain. (MoneySavingExpert news)
What’s still unclear
- Exact number of consumers entitled – estimates range from 5 to 12 million.
- When the FCA will set a hard deadline – currently open-ended.
- Whether lenders will challenge the redress scheme in court.
- How tax rules will apply to compensation payments with interest.
The implication: while some details remain uncertain, the core facts are solid enough to act on.
What the experts say
“The FCA’s investigation is a landmark step for consumer protection. We are committed to ensuring consumers who lost out due to non-disclosure receive fair redress.”
— FCA spokesperson
“We have seen a significant number of car finance complaints and the majority are upheld. Consumers should not be afraid to come forward.”
— Financial Ombudsman Service representative
Summary
The PCP mis-selling saga is one of the largest consumer finance redress events in UK history, with an estimated 12.1 million agreements in scope. Martin Lewis’s free tool has already cut through the noise, giving ordinary borrowers a direct line to compensation without giving away a chunk of their payout. For anyone who financed a car on PCP or HP between 2007 and 2021, the choice is clear: use the free tool now, or risk leaving hundreds or thousands of pounds on the table.
For a detailed step-by-step breakdown, check the Martin Lewis PCP claim guide which outlines eligibility and typical payout amounts.
Frequently asked questions
What is a discretionary commission arrangement?
It was a secret agreement that let car dealers set a higher interest rate on your finance in exchange for a larger commission – without telling you. The FCA banned it in January 2021.
Do I have to pay a fee to make a PCP claim?
No. The MoneySavingExpert free tool generates a complaint letter at no cost. Avoid claims management companies that charge upfront fees or take a percentage of your payout.
Can I claim if I already settled my PCP finance early?
Yes. You are still eligible even if you paid off the deal early, as long as the agreement falls within the eligible date range.
Will my car be affected if I make a claim?
No. Your car ownership is not affected. The claim is about the finance agreement, not the vehicle itself.
What happens if my finance provider rejects my complaint?
You can take it to the Financial Ombudsman Service for free within six months of the lender’s final response. The Ombudsman upholds around 80% of such complaints.
Is there a government page for checking PCP claims?
The FCA’s website has details on the redress scheme, but for a step-by-step guide and a free complaint tool, the MoneySavingExpert page is the most widely used resource.
Can I claim for a Hire Purchase (HP) agreement too?
Yes. The redress scheme covers both PCP and HP agreements, as both often contained undisclosed discretionary commission.
Will I have to pay tax on a PCP claim payout?
Compensation for the overpaid commission itself is not taxable, but any 8% interest added may count against your personal savings allowance (currently £1,000 for basic-rate taxpayers). Check with HMRC if unsure.
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