Start my PCP claim
It is simple and easy
The PCP claim process
Professional claims management from start to finish. Understand our simple 5 step PCP process.
Initiate your claim
Step 1
To start your PCP claim simply call us on 0161 834 5333, fill in one of our forms, or email info@redstarfm.com today! This will allow us to prepare the documents so we can issue them to you for your consideration
Your claims pack
Step 2
Our PCP claims pack will be sent to you via the post. Upon receipt please read over to make sure you are happy with everything. If you are happy, please review, complete and sign the relevant documents in our claims pack, and send them back to us in the freepost envelope provided.
Document completion
Step 3
Upon receipt we will review the information received. From time to time we may require more information from you, which we will contact you to request.Once we have prepared all the information, we are then able to build up the complaint to issue to your bank.
Your complaint
Step 4
Once we have registered a complaint with your lender, we will ensure any requests are dealt with in a timely manner. We will keep you updated every step of the way. We expect a decision from the lender within 8 weeks as per the complaint handling rules set out by the Financial Conduct Authority. If we do not receive a final response from the lender, we will then submit the complaint to The Financial Ombudsman Service on your behalf.
Please note: The FCA currently has a temporary hold on complaint resolution timescales related to PCP finance claims until December 2025. This means that responses from lenders and the Financial Ombudsman Service may take longer than usual during this period.
Case completion
Step 5
If the lender upholds the complaint, we will contact you to inform you of their decision. Should the lender choose to defend the complaint then we will fully inform you of the next steps of the process involving submitting the complaint to The Financial Ombudsman Service.
Do You Have Multiple Unchecked PCP Finance Claims?
Many UK drivers may have unknowingly entered into mis-sold PCP (Personal Contract Purchase) agreements. If you took out one or more PCP agreements without being fully informed about key terms, commissions, or costs, you could be eligible for compensation.
The good news is that Red Star Financial Management Ltd has made the process of checking these potential claims straightforward and hassle-free.
Data sourced from the Financial Conduct Authority (FCA), accurate as of 2023.
44,000,000,000
is the figure that the FCA have suggested the total compensation could amount to for affected consumers
1,100
The average compensation payout for a mis-sold car finance agreement is estimated at £1,100, though this amount can vary based on individual circumstances.
40
of pre-2021 car finance agreements (approx) may have been missold
60,000
New claims already submitted
It’s easier than ever to start your PCP claim
Contact Us Direct
Have your case initiated by one of our specialist claim handlers over the phone today.
PCP claim... What is it?
Is the next big scandal upon us? You will have already heard about the vast mis-selling of Payment Protection Insurance (PPI) and how consumers have claimed back over £25 billion since January 2011 as published by the Financial Conduct Authority (FCA). Now, were here again, with PCP claims…
You may have the right to make a PCP claim if you believe you were mis-sold a Personal Contract Purchase (PCP) finance agreement when buying your vehicle.
A PCP finance agreement could be mis-sold if the salesperson did not provide full information, gave misleading advice, failed to disclose commissions or interest charges, or otherwise left you unaware of important details about the deal.
A PCP agreement is considered mis-sold if you were not given enough information to judge whether the contract was financially suitable or represented good value.
A recent investigation by the Financial Conduct Authority (FCA) revealed widespread mis-selling across various types of UK car finance agreements.
The FCA reported that commissions were paid on 95% of UK car finance deals, with estimates suggesting that up to 40% of these agreements may have been mis-sold.
Did the FCA bad discretionary commission models for PCP finance sold via brokers?
In January 2021, the Financial Conduct Authority (FCA) implemented a ban on discretionary commission models in the motor finance industry. Prior to this, some car retailers and brokers received commission linked to the interest rate paid by customers, creating an incentive to sell more expensive credit. The FCA estimated that this practice cost consumers approximately £165 million annually. source
The ban aimed to remove the financial incentive for brokers to increase interest rates and to give lenders more control over the prices customers pay for motor finance. This move was part of the FCA’s broader efforts to increase transparency and protect consumers in the motor finance market. source
Why Are PCP Complaints on Hold?
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In January 2024, the Financial Conduct Authority (FCA) placed a temporary hold on complaint handling timelines for motor finance commission-related complaints. This pause was introduced to allow the FCA to thoroughly assess the scale of potential mis-selling across the industry and determine whether a redress scheme may be required.
The investigation follows significant concerns that customers were not made aware of discretionary commission arrangements, which may have led to higher costs on PCP and other motor finance agreements. The FCA is expected to provide an update by September 2024, with the hold currently in place until December 2025.