Ever see extra charges in your car finance documents for GAP insurance or other add-ons you never agreed to? You're not alone. Though the August 2025 Supreme Court decision [1] reformulated how some commission-related claims are handled, you still could challenge add-ons that were mis-sold. Such mis-selling of PCP has different rules and is still valid.

What Counts as an Add-On in Car Finance?

Add-ons are extra products or services included in your car finance agreement. Sometimes they are genuinely optional, but other times they’re added quietly, without much explanation.

Common examples include:

GAP Insurance [2]

This type of cover is designed to pay the difference between what your insurer pays out and the amount you still owe on your car finance if your vehicle is written off.

Paint Protection

Paint protection for your car from scratches and other damage.

Extended Warranties

Cover repairs after the manufacturer's warranty expires.

Service Packages

Plans that are pre-paid and cover servicing or maintenance for a set period of time.

These products aren’t necessarily bad, but problems start when they’re added without your full understanding or without anyone clearly explaining what they do, how much they cost, or whether you even need them.

When Does an Add-On Count as Mis-Sold?

Not every add-on means your finance deal was mis-sold, but there are some clear signs that should make you pause and take another look. 

• Has anybody stated that the product was optional (or would incur a premium price)?
• Were you told precisely what the product covered and how that might influence your monthly payment?
• Did the add-on come together with your agreement without your consent or knowledge?
• Did the salesperson make the product look like it needed the finance when it did not?

If you found out later that you paid for something you did not agree to, that may be a good indicator that your case involved mis-selling of PCP finance. Does any of this sound familiar? Double-check your paperwork.

What Do FCA Rules Say About Add-Ons?

The Financial Conduct Authority (FCA) has clear rules around how these add-ons should be sold alongside car finance [3].

Here’s what those rules say:

• Add-ons must be explained clearly and separately from your main finance agreement.
• You must actively agree to the product before it’s added to your deal.
• The product must actually suit your personal needs.

If your broker or lender didn’t follow these steps, they may well have acted unfairly.

Why GAP Insurance Often Triggers Complaints

GAP insurance is a frequent issue because:

• It might not be obvious that you were signed up to it.
• Some GAP products came with hidden commissions. If the loan involved a Discretionary Commission Arrangement (DCA), you might also qualify under the upcoming FCA redress scheme. See our page for more guidance: Discretionary vs Fixed Undisclosed Commissions.

Often, successful complaints will include a refund for the product plus any interest on it.

How Add-On Claims Stand After the FCA Investigation

Following the Supreme Court ruling:

• DCA claims will go through the FCA’s redress scheme.
• Fixed undisclosed commission claims are more limited.
• Add-on mis-selling claims remain capturable through the Financial Ombudsman or complaint to your lender.

If your PCP deal includes both hidden commissions and mis-sold add-ons, you can raise them together. The Ombudsman will review the full picture.

What Could Your Compensation Include?

You could be compensated for:

• Full refund of the add-on itself.
• Refund of interest you paid on the add-on via your finance payments.
• Plus compensation if the product was clearly unsuitable or financially stressful for you.
• Sometimes your lender will also need to correct your credit file if the add-on had an adverse effect.

Do I Need Paperwork to Make a Claim?

You do not always need paperwork, but it helps:

• You can ask your lender for a copy of your agreement.
• Bank statements showing overpayments are useful.
• You can still complain even if you no longer own the car. Visit our guide: Can I still make a PCP complaint if I traded in the car years ago?.

Will I Need to Go to Court?

Most claim outcomes are resolved without court involvement. The Ombudsman handles most cases. If you need help, see: Will I need to go to court to recover compensation for mis‑sold finance?.

Closing Thoughts

The Supreme Court decision changed the landscape for commission claims, but mis‑selling PCP car finance doesn’t only involve commissions. Add-ons like GAP insurance or service packages are still covered by consumer protection rules [4]. You may still be owed compensation.

At Reclaim247, we help drivers with no win, no fee claims. Use our free claim checker now to see if your deal had hidden add-ons or unfair terms.

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1. August 2025 Supreme Court decision - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. GAP insurance - https://www.gocompare.com/car-insurance/gap-insurance/
3. The Financial Conduct Authority (FCA) has clear rules around how these add-ons should be sold alongside car finance - https://www.fca.org.uk/publications/policy-statements/ps15-22-general-insurance-add-ons-market-study-%E2%80%93-remedies-banning-opt
4. Add-ons like GAP insurance or service packages are still covered by consumer protection rules - https://www.financial-ombudsman.org.uk/businesses/complaints-deal/insurance/motor-insurance/gap-insurance