Updated: 29 September 2025

Originally Published: 03 February 2025

Signing up for a PCP (Personal Contract Purchase) or HP (Hire Purchase) deal often feels like a simple way to finance a new car. Predictable monthly payments, a fixed contract length, and the option to buy the vehicle at the end make these products look appealing.

For millions of UK drivers, however, the reality was very different. Most later discovered they paid more interest than expected, received large balloon payments or had extras like GAP insurance added without their consent. In countless cases, lenders paid hidden commissions to dealers and brokers, influencing the deals consumers were offered.

Between 2007 and 2021 these practices became widespread. Today they are central to the car finance scandal that could see billions of pounds in redress paid to consumers. The Financial Conduct Authority (FCA) believes as many as 14 million agreements may have been mis-sold [1]. A high Court ruling in August 2025 confirmed that the non-disclosure of commissions can create an "unfair relationship,"  [2] leaving a path to compensation open.

Those who suspect their car finance was mis-sold are not alone. Navigating the complaints process however is not straightforward while the FCA finalises its official redress scheme. That's why so many people are looking for the best PCP claims companies to support them.

In this guide, you will learn:

• What a PCP claims company does.
• The qualities that define the best car finance claims company.
• Why professional support from finance claims experts can protect your rights.
• What to consider before choosing a firm to represent you.

What Does a PCP Claims Company Do?

A PCP claims company acts on your behalf to investigate whether your car finance agreement was fair and transparent. If signs of mis-selling are found, the company helps you file a complaint with your lender so it is logged and ready when the FCA’s scheme comes into force.

A good PCP claims company:

• Checks your agreement for high interest rates, unfair terms or other extras.
• Checks whether a dealer or broker got an undisclosed commission.
• Handles all paperwork and communications with your lender.
• Gives regular status updates on where your case is.
• Operates on a win/no fee basis: you pay only if the claim is successful.

For consumers, that support removes much of the stress. Instead of missing deadlines or chasing paperwork, experts prepare your case.

What Makes the Best Car Finance Claims Company?

Not all claims management companies provide the same level of service. Some are specialists in car finance, while others add it to a long list of unrelated claims. Choosing the best car finance claim company means finding a firm that combines experience, regulation, and consumer care.

Key Qualities of the Best PCP Claims Companies

• Specialist expertise in car finance claims: The strongest firms focus specifically on PCP and HP agreements. These people know the legislation, how mis-selling generally happened and spot problems quickly.
• No-win, no-fee clarity: An actual no win/no fee policy means you pay only if your claim is successful. Best firms write this down, without any hidden charges or vague terms.
• FCA authorisation: Handling your finances requires trust. The best PCP claims companies are authorised and regulated by the FCA [3] and must therefore operate fairness and transparency standards. This gives you the reassurance that your case is being handled properly.
• Clear and consistent communication: A good firm makes the process easy to follow. They assign you a dedicated case handler, keep you updated in plain language, and are always on hand to answer your questions. You should never feel left in the dark about your own claim.
• A proven track record: Reputation is earned, not claimed. Look for independent reviews, real customer stories, and evidence of how many claims the company has already handled. These are signs you are dealing with a firm you can rely on.

For example, at Reclaim247 more than 400,000 drivers have filed claims with us so far. That trust has been built through transparency and consistent support, long before the FCA final redress rules are in place.

1. Car Finance Claims Specialist Experience

PCP and HP mis-selling often involved technical issues that someone would easily overlook. The best PCP claims companies know how to spot:

• Discretionary commission arrangements (DCAs) in which interest rates were raised to increase dealer commission.
• Unfairly high interest rates: charges that were higher than your credit history should have allowed.
• Unwanted extras: products such as GAP insurance or warranties that were bundled into the deal without your clear agreement.
• Confusing balloon payments: large final payments that were never explained properly, leaving you shocked at the end of the contract.

Generalist firms may overlook these issues. By contrast, specialist finance claims experts have the insight needed to recognise patterns of mis-selling and prepare a strong case.

2. A Genuine No-Win, No-Fee Promise

For consumers, a no-win, no-fee guarantee is an important safeguard. But not every company delivers on this promise. Some insert hidden charges into the small print, or ask for upfront “administration fees.”

The best car finance claims company will:

• Confirm in writing that you pay nothing if your claim is unsuccessful.
• Specify what percentage or fee you receive if your case succeeds.
• Be upfront about what their fee includes so there are no surprises later.

Having this transparency allows you to make an informed choice, with complete confidence in what you are signing up to.

3. A Reputation You Can Trust

Any company can say they are the best PCP claims company. The test is whether they can back that up. A reputable firm will have proof of the work they have done and the trust customers have in them.

• Independent customer reviews on platforms such as Trustpilot [4] and Google.
• Testimonials/feedback from people who have made car finance claims with them.
• Evidence of experience including the number of claims handled or registered.

At Reclaim247, more than 400,000 UK drivers have already trusted us to register their car finance complaints. That kind of engagement demonstrates how many consumers appreciate having professional support available.

4. Personal Support and Clear Communication

Car finance claims might seem daunting to those unfamiliar with financial or legal processes. The best PCP claims companies want to make it as easy as possible for you to get started with your claims.

That means:

• Every claimant is allocated a specialist law firm.
• Devoted case handlers give clear, personalised updates, explaining each stage and field questions in plain English.
• The service is designed to remove stress and confusion so even consumers who have never filed a financial complaint before feel supported.

Such clear communication separates good firms. Instead of being left in the dark, you know someone is working on your case and doing everything right.

5. FCA Regulation and Accountability

Any company offering financial claims must be authorised by the Financial Conduct Authority (FCA) [5]. This is not optional. FCA authorisation protects you as a consumer and ensures companies are held to clear standards.

Before you sign up with a PCP claims company, always check the FCA register. If a firm cannot prove its status, walk away. The best car finance claims companies are open about their regulation and provide transparent procedures for raising concerns if needed.

Should You Consider a Claims Management Company?

Some financial commentators suggest waiting until the FCA’s redress scheme is launched in 2026. Others warn that this approach could leave millions of consumers at risk of being overlooked.

Why Waiting Can Be Risky

• An estimated 14 million people were mis-sold car finance between 2007 and 2021.
• Only 23 percent of drivers trust lenders to pay compensation fairly.
• 57 percent have moved house since taking out their agreement, and more than 8 million have lost important paperwork.

(Source: Slater & Gordon)

These figures suggest that waiting for lenders to contact you may not be enough. Many people could struggle to prove their claim without professional support.

How a PCP Claims Company Helps

If you are unsure who your lender was, cannot locate your paperwork, or simply want professionals to manage the claim for you, a PCP claims company can help. At Reclaim247, for instance, all that is needed is your name, address, and date of birth. No paperwork. No car registration. Everything is managed on a no-win, no-fee basis, with solicitors available where necessary.

Comparing Your Options

If you want to pursue a claim, you generally have three choices.

• DIY complaint: Free to do yourself and keeps you in control. The downside is that the process can be complex, time-consuming, and easy to get wrong. Best for confident consumers with all the necessary paperwork.
• Solicitors: Provide strong legal expertise regulated by the Solicitors Regulation Authority. Fees may be higher and not all firms take consumer finance claims in bulk. Optimal for complex or unusual cases.
• Claims management companies: CMCs are FCA-authorised and usually work on a no win no fee basis: you pay only if your claim goes through. They handle everything from gathering information, filing your complaint to meeting deadlines. They do charge a percentage of your compensation as their fee, but they make the process much more accessible for most people. These are often best if you lost your paperwork, moved house since taking out the finance or just want to have the process handled by professionals.

How to Choose the Best PCP Claims Company

Before committing, always ask:

• Are you authorised by the FCA?
• What will I pay if my claim succeeds?
• Do you provide written terms before I sign?
• Will I get a dedicated case manager or law firm?
• How will you keep me updated?

These questions are answered clearly by the best PCP claims companies and they will never pressure you into making an instant decision.

Qualities That Define the Best PCP Claims Companies

Warning Signs to Avoid

Some firms cut corners or use high-pressure tactics. Be wary if you encounter [7]:

• Cold calls and unsolicited texts.
• No proof of FCA authorisation.
• Promises of guaranteed wins without checking the documents.
• Hidden charges are in the fine print.
• Pressure to sign before you have time to consider.

Why Reclaim247 Is Regarded as One of the Best Car Finance Claim Companies

At Reclaim247, we have built trust through transparency and consumer care. With over 400,000 claim registrations, we are helping drivers across the UK prepare for the FCA redress scheme.

We are recognised as one of the best car finance claims companies because we provide:

• A genuine no-win, no-fee guarantee with no upfront costs.
• Specialist law firms assigned to every claimant, ensuring consistency.
• Dedicated case handlers who provide clear, personalised updates.
• Full FCA regulation, giving you protection and peace of mind.
• A service designed to reduce stress and make the process manageable, even if you have no paperwork.

Frequently Asked Questions

Who is the best car finance claim company in the UK?

The best car finance claims company is FCA-authorised, operates fairly under a no-win, no-fee model, and has a strong success record. At Reclaim247, we meet each of these standards and we are trusted by thousands of drivers.

How can I check if a company is genuine?

Search the FCA register, read independent customer reviews, and confirm fees in writing.

Are all PCP claims companies truly no-win, no-fee?

Not always. Some add hidden charges. The best PCP claims companies put their no-win, no-fee guarantee in writing.

Is it too late to bring a PCP claim?

No. Agreements made between 2007 and 2021 are still within scope. Acting now ensures your case is logged before any deadlines.

Should I wait for the FCA scheme before complaining?

No. Complaints can be logged today. Filing now secures your place in the system and prepares your case for review once the scheme begins.

Do I need my paperwork to start?

Not necessarily. Many claims management companies can start your case using only your personal details.

Final Thoughts

The car finance scandal has exposed widespread unfair practices, with millions of drivers affected. Billions of pounds may be paid out once the FCA’s redress scheme is in place.

Choosing the best PCP claims company gives you access to expertise, FCA regulation, and genuine no-win, no-fee protection. Whether you have lost paperwork, moved house, or simply prefer professionals to handle the process, finance claims experts can make sure you are not left behind.

At Reclaim247 we are proud to be one of the best car finance claims companies in the UK. Clear communication, assigned law firms and more than 400,000 registered eligibility claims already mean we can help drivers prepare for redress with confidence.

If you are ready to take the next step, our team is here to guide you carefully and professionally.

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References:

1. Financial Conduct Authority (FCA) believes as many as 14 million agreements may have been mis-sold - https://www.moneysavingexpert.com/news/2025/09/car-finance-redress-treasury-committee-update/
2. A high Court ruling in August 2025 confirmed that the non-disclosure of commissions can create an "unfair relationship,"  - https://supremecourt.uk/cases/press-summary/uksc-2024-0159
3. PCP claims companies are authorised and regulated by the FCA - https://register.fca.org.uk/s/
4. Trustpilot - https://uk.trustpilot.com/review/www.reclaim247.co.uk
5. Any company offering financial claims must be authorised by the Financial Conduct Authority (FCA - https://www.fca.org.uk/consumers/car-finance-complaints
6. Source: Slater & Gordon  - https://www.slatergordon.co.uk/newsroom/23-million-people-expecting-car-finance-scandal-compensation/
7. Be wary if you encounter - https://www.gov.uk/complain-about-claims-company