Can I still make a PCP complaint if I traded in the car years ago?
Guide 25 August 2025 |  | Shannon Smith O'Connell |
Yes, you are still able to file a PCP mis-selling claim in case you sold or even traded in your car years ago.
The reason for this is that the complaint is not about the car itself, but about the way the finance agreement was arranged. It’s about the terms of the agreement and whether the finance company mis-sold it to you, for instance, by not disclosing commissions or by charging unfair interest, and when the agreement was signed. If you’ve paid off the finance years ago and no longer have the car, it’s still possible that the terms of the agreement were unfair, and you may be entitled to compensation.
Why Car Ownership Doesn’t Affect Your Claim
Some consumers think that because they no longer have the vehicle, they have no right to complain. The problem is how the car finance was sold, not what happened to the vehicle subsequently.
If a lender or broker failed to tell you about commissions, pressured you into unsuitable terms, or added hidden costs, that mis-selling occurred at the point of sale and trading in or selling the car later does not erase what happened. Many people who have since sold their cars are still eligible for a PCP claim back, provided the agreement itself was unfair.
So, even if you swapped your car for another in a part-exchange or simply sold it privately, you can still submit a complaint and potentially recover money owed.
Time Limits to Know
Understandably, many drivers also wonder, “how far back can I claim for car finance?”. The good news is that the Financial Conduct Authority (FCA) has not yet imposed a final deadline for complaints.
Even if your agreement dates back several years, you can usually still bring a complaint, particularly during the FCA’s investigation pause in 2025 [1], which temporarily stopped lenders from rejecting claims while mis-selling practices are reviewed. If you believe you were affected by undisclosed commissions or unfair terms, you should still act promptly, but don’t assume your agreement is too old.
You may find it helpful to use a free service to check car finance claim eligibility [2] before submitting a formal complaint.
Why 2025 is a key year for car finance
The car finance sector reached a watershed moment in 2025 in the Supreme Court’s ruling in August [3]. The top judges agreed that a commission on a finance deal is not automatically unlawful. However, where brokers or lenders have hidden discretionary commissions or inappropriately hiked interest rates, this may still lead to an “unfair relationship” under consumer credit law. As a result, many PCP complaints are still live and are still eligible for review.
The FCA has currently placed a pause on all commission-related complaints, until 4 December 2025 [4]. Consumers are still able to file a PCP complaint today, but most cases will not be reviewed until after the pause is lifted. The pause has been introduced to allow for a level playing field in the industry, as regulators work to finalise the rules for how these claims will be processed.
Nevertheless, the FCA has confirmed that it will issue a consultation in October 2025 [5], which will set up a potential industry-wide redress scheme. The consultation process is likely to last around six weeks, and final rules should follow in early 2026. The regulator has indicated that average redress in these cases will be in the region of £950 per agreement [6], but some drivers could be due significantly more, depending on the terms of their finance deal.
Example Scenario
To illustrate: A driver took out a PCP agreement in 2017 and traded in the car for a new one in 2019. For example, at the time, they did not realise the dealer had been paid a big, undisclosed commission for arranging the finance. In 2025, the driver learns about Discretionary Commission Arrangements (DCAs) and files a complaint.
Even though they no longer have the car, they are still entitled to pursue compensation because the unfairness was baked into the original contract, which remains the basis of their claim.
Conclusion
If you’ve traded in or sold your car, that does not prevent you from making a complaint about your past PCP agreement. What matters is whether the lender or broker mis-sold you the finance, and whether you’ve suffered financial harm as a result.
Your past agreement could still qualify even if it was years ago. Use Reclaim247’s simple checker today to see if you might be eligible for compensation.
FAQs & Related Resources
Undisclosed commission refers to hidden payments made to brokers without the customer’s knowledge, while unfair interest rates occur when a lender charges excessive rates, often influenced by those commissions.
Yes, in many cases you can. If the broker failed to disclose a commission or arranged an unsuitable agreement, you may still have grounds for a claim.
Only a few car finance claims are ever fought in court. Most are settled either through direct negotiation with the lender or through the Financial Ombudsman Service (FOS).
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References:
- FCA’s investigation pause in 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
- free service to check car finance claim eligibility - https://www.fca.org.uk/news/statements/key-considerations-implementing-possible-motor-finance-consumer-redress-scheme
- Supreme Court’s ruling in August - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
- The FCA has currently placed a pause on all commission-related complaints, until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
- FCA has confirmed that it will issue a consultation in October 2025 - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
- average redress in these cases will be in the region of £950 per agreement - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator