What’s happening with PCP car finance claims in 2025?
If you’ve started or are thinking of starting a car finance claim in the UK, 2025 is a key year. The Financial Conduct Authority (FCA) has paused the handling of complaints involving discretionary commission arrangements (DCAs) until 4 December 2025. That means lenders don’t need to respond to complaints until that date — but it doesn’t mean your complaint won’t count if you submit it now.
This pause gives regulators and the courts time to evaluate the scale of mis-selling and how compensation should be handled. It also gives you more time to take action — especially if your PCP agreement included hidden fees or unclear terms.
Why was this delay introduced?
The FCA’s investigation began after a surge in complaints from UK drivers who discovered their car finance agreements may have been mis‑sold. The biggest issue: undisclosed commissions. In many cases, dealers increased the interest rate you paid so they could earn more — and never told you. That practice, under what’s called a discretionary commission arrangement, is now under scrutiny.
To avoid confusion and overlapping decisions, the FCA decided to pause enforcement while legal clarification is underway. They will publish their findings — and possible next steps — after 4 December 2025. This includes potential redress schemes, payout guidance, and new complaint rules.
What about the Supreme Court case?
Alongside the FCA’s work, a key case is expected to reach the UK Supreme Court in late 2025. This case will address whether discretionary commissions violate consumer protection laws and whether they make a contract unenforceable or refundable.
If the court rules against the lenders, it could lead to automatic compensation models — similar to how PPI claims were handled. This is one reason many legal teams and claims companies are asking clients to be patient and prepared, even if it takes time.
What does this mean for your claim?
You can still file a complaint now. The FCA has been clear that customers should not wait to complain. Even though lenders aren’t required to respond until December 2025, the earlier your claim is submitted, the earlier it will be reviewed once the freeze is lifted.
If you wait too long, you may fall outside the eligible window for recovery — especially if a time-based redress scheme is introduced.
Do you need to use a claims company?
No. You are allowed to complain directly to your lender or car dealership — for free. If they do not resolve it, you can escalate the complaint to the Financial Ombudsman Service. This route costs nothing.
However, many drivers prefer using a legal firm or claims partner that can find their agreements, build the complaint, and deal with the lender. These companies typically charge a No Win, No Fee success fee of 18–36% if your claim is successful.
Timeline: What happens between now and December 2025?
- Claims continue to be submitted by customers via online checkers, solicitors, and self-service.
- Throughout 2025: Legal arguments and data analysis continue in court and with the FCA.
- Expected by Q3–Q4 2025: A ruling from the Supreme Court that could clarify legal precedent for car finance refunds.
- 4 December 2025: The FCA resumes case enforcement, publishes redress plans, and provides updated response timelines.
How to prepare your case now
If you think your PCP or HP agreement was mis‑sold, don’t wait. You can start your eligibility check online in minutes — often with no paperwork needed. Most claim tools link with credit reference agencies and databases to pull up your historical car finance records.
Once you’re eligible, your claim can be stored and ready. Legal teams will resume communication with lenders when the freeze ends.
Tips for getting ahead of the 2025 decision
- Gather any documents you still have — including email quotes or approval letters.
- Use your full legal name and address history when checking for finance matches — especially if you’ve moved or changed names.
- Don't submit duplicate claims to multiple firms — it may delay your process.
FCA messaging to consumers
The FCA’s own guidance page says clearly: “You can still complain now.” And MoneySavingExpert, Citizens Advice, and multiple law firms agree — acting early locks in your case and protects your rights.
With the legal picture still shifting, submitting a claim now could mean you’re one of the first in line when the rules change.
