Receiving a rejection letter after submitting a PCP claim can be unsettling. For many drivers, the first feeling is worry. It can feel as though a decision has been made before you have had a proper opportunity to explain your situation.

In practice, a rejection is often not the end of the process. This is especially true while complaint handling remains affected by regulatory pauses linked to the wider car finance scandal.

Across PCP claims UK, many complaints now sit in a holding pattern. Lenders are operating under temporary restrictions [1], and that influences how responses are written. Some letters are cautious, limited, or procedural in tone. They do not always reflect a full decision on mis-sold car finance.

This guide explains what a rejected PCP claim can mean right now. It also outlines the next steps to consider and how to protect your position if you are dealing with car finance claims linked to PCP mis-selling or wider car finance mis-selling.

Why a lender may issue a rejection or holding response right now

Complaint handling for certain motor finance issues is currently restricted.

During this period, some lenders continue to send letters that appear to reject a car finance claim, even though a full assessment has not taken place. These responses are often shaped by the lack of final regulatory guidance, rather than by a conclusion about the complaint itself.

For several reasons, a lender might issue such a response. They may say they cannot conclude now. They might explain they have not reviewed all records. The complaint is sometimes admitted with no substantive result. Others issue a procedural or holding response instead of a final decision.

Letters like this should not automatically be treated as a definitive rejection of a PCP claim. In many situations, they reflect temporary handling constraints rather than a settled position.

It is also important to understand that the current pause on certain motor finance complaint responses is expected to lift on 31 May 2026 [2]. Once that happens, lenders are expected to return to fuller reviews and issue more complete responses.

The difference between a final rejection and a temporary response

Not every letter that says a complaint is “not upheld” means the same thing.

A final rejection usually confirms that a full review has taken place. It explains the lender’s reasoning in detail. It refers to specific evidence and sets out whether the complaint can be taken further.

A temporary or holding response is more common during the pause. These letters often use careful language. They may say the complaint cannot be upheld at this time or that no evidence has been identified yet.

Some drivers involved in PCP claims UK receive letters that feel conclusive at first glance, even though they are not intended to be final. Recognising this difference can help prevent unnecessary worry and missed next steps.

What to do when you receive a rejection-style letter

The most important first step is to keep the letter and all related correspondence.

Even if the wording feels unclear or frustrating, the letter forms part of your complaint history. It may become important later once complaint handling resumes or escalation routes reopen.

Take time to read the letter carefully. Pay attention to how the lender describes the outcome. Look for wording that suggests a temporary position. Note any reference to missing evidence or paused processes. Check whether escalation options are mentioned or deferred.

If the explanation feels brief or cautious, that is consistent with the current stage of the car finance scandal.

If the lender says there is “no evidence”

Being told that no evidence has been found does not mean evidence does not exist. It also does not mean your PCP claim has failed.

Many agreements are located later once fuller reviews resume or once additional information is taken into account. You can help protect your position by gathering what you already have.

This often includes old email confirmations or lender correspondence, credit reports showing historical PCP or HP agreements, and bank statements that show car finance payments. Any remaining documents can also help, even if they are incomplete or fragmented.

Missing paperwork is extremely common and does not prevent PCP claims. If this is your situation, you may find reassurance in Can’t Find My Car Finance Agreements. Can I Still Claim?, which explains how claims can still move forward with partial records.

You may also find How to Find My DCA Claim Even Without Paperwork helpful, particularly if commission or dealer involvement is unclear.

When the Financial Ombudsman may become relevant

In some cases, the Financial Ombudsman Service may become relevant after a PCP claim is rejected.

The Ombudsman can review complaints where a lender has issued a final response that the driver disagrees with. This can include complaints linked to PCP mis-selling, undisclosed commission, or unfair interest rates.

Escalation is not always available immediately. During periods when complaint handling is paused or restricted, lenders may not issue final responses. In those situations, the Ombudsman may not yet be able to review the complaint.

This does not remove your right to escalate later once normal handling resumes. If and when escalation becomes available, the rejection letter should explain whether the lender considers its response final and whether the complaint can be referred to the Ombudsman.

What to do if you are considering Ombudsman escalation

If you believe your PCP claim was wrongly rejected, it can help to prepare early, even if escalation is not yet possible.

Preparation usually means keeping copies of the rejection letter and all correspondence. It also means saving any finance documents you have, even if they are incomplete. Bank statements, credit reports, and affordability information can all be useful. It is also sensible to make a note of when you received the lender’s response.

Escalation routes and referral timeframes can vary depending on the type of car finance claim and the wording used by the lender. Because of this, it is important to rely on the details in your own letter rather than general timelines.

If you are unsure, contacting the Financial Ombudsman for guidance can help clarify whether your complaint is ready to be reviewed.

What to expect once complaint handling resumes

When complaint handling resumes after 31 May 2026, lenders are expected to return to fuller and more consistent reviews.

Drivers who submitted complaints earlier, including those who received holding or rejection-style responses, should already be recorded in the system. At that stage, lenders may request additional information. Earlier responses may be revisited. Decisions should become clearer and more detailed. Formal escalation routes should also reopen.

This applies across PCP claims, wider car finance claims, and complaints linked to car finance mis-selling.

For a clearer understanding of how this situation developed, it can help to read Car Finance Scandal Timeline. From DCA to FCA Intervention.

A final note for drivers who feel stuck

Receiving a rejection-style letter during a regulatory pause can feel confusing and disheartening. It does not automatically mean your PCP claim has failed.

Many drivers affected by mis-sold car finance are navigating the same uncertainty. The most important steps are to keep your records, understand the wording of any responses you receive, and be ready for the next stage once normal complaint handling resumes.

In the context of the wider car finance scandal, a rejection is often not an ending. For many people, it is simply part of a paused process.

_________

References:

1. Lenders are operating under temporary restrictions - https://www.fca.org.uk/news/statements/update-motor-finance-work
2. the current pause on certain motor finance complaint responses is expected to lift on 31 May 2026 - https://www.fca.org.uk/news/statements/pause-motor-finance-complaints-handling-lift-31-may-2026