Yes. Whether you are pursuing compensation for a personal injury or, more recently, a PCP car finance agreement, you are entitled to make a claim directly yourself instead of going through a claims management company.
Over the past two decades, claims firms have become increasingly common, promoting services for everything from injury compensation and PPI refunds to loan disputes and now PCP car finance claims. Regulators estimate that as many as 12 million people across the UK could potentially have been affected by PCP finance issues.
Although television adverts, radio campaigns, emails and text messages may encourage you to use a third-party company, many people are unaware that they can often handle the claim independently. While claims companies may offer convenience, they usually charge a percentage of any compensation awarded.
The Growing Attention Around PCP Car Finance Claims
In recent years, UK consumers have seen a sharp increase in communication regarding possible compensation linked to mis-sold PCP car finance agreements. Since PCP has been one of the most widely used methods of vehicle finance in the UK, many drivers who financed a car between 6 April 2007 and 28 January 2021 may potentially qualify for a claim.
As claim deadlines approach, solicitors and claims firms have intensified marketing efforts, often promoting potential average payouts of around £829 based on recent 2026 estimates.
For households facing financial pressure, these offers can understandably seem attractive.
However, it is important to understand that many claims companies deduct fees from any successful payout. These charges are commonly between 20% and 30% of the compensation received. For example, a successful £800 claim could result in up to £240 being taken in fees.
This leads many people to ask whether they actually need a claims company at all.
What Are PCP Finance Claims?
Personal Contract Purchase (PCP) finance is one of the UK’s most common car finance arrangements. Typically, customers pay a deposit followed by monthly instalments over several years, before either making a final balloon payment to own the vehicle or returning the car at the end of the agreement.
Concerns have emerged over how some of these agreements were sold. In particular, some customers were allegedly not given clear information about commission arrangements or how interest rates were determined. Because of this, regulators have increased scrutiny of historic finance agreements.
Research from the Financial Conduct Authority (FCA) has indicated that many households could potentially have multiple financial agreements that may have been mis-sold during this period, including vehicle finance products. In some circumstances, even agreements held by deceased relatives may still be eligible for investigation.
Why Claims Companies Are Contacting Consumers
Claims management firms are heavily targeting PCP finance customers because of the scale of the potential market. With millions of agreements signed over the years, even a modest number of successful claims represents a significant commercial opportunity.
These companies generally offer to manage the process on behalf of consumers. This can include collecting information, preparing paperwork, and dealing directly with lenders.
For some individuals, this support may be useful, particularly if they feel uncertain about handling financial complaints themselves.
Certain firms may also assist in locating older agreements or supporting documents that customers or their families no longer have access to. In some cases, claims relating to agreements dating back to 2007 may still be explored, including those connected to deceased relatives.
Can You Make a PCP Claim Yourself?
Yes. Consumers are able to submit PCP finance complaints directly without using a claims company. Guidance is available through the FCA, individual finance providers, and consumer advice resources such as those published by Martin Lewis.
Although managing the process yourself may take more time and effort, it could allow you to keep the full value of any compensation awarded. Depending on the circumstances, some claims may amount to several thousand pounds, particularly where multiple agreements are involved.
Why Some People Still Choose Claims Companies
Despite the option to claim independently, some consumers prefer to use claims management firms for convenience.
A claims company may help organise paperwork and get all your documents together to make a claim, structure the complaint correctly, and communicate directly with lenders throughout the process. Their experience with finance disputes may also help simplify what some people find to be a complicated process.
For those who lack the time or confidence to pursue a claim themselves, outsourcing the work can feel like a practical option.
Important Factors to Consider
Before deciding how to proceed, it is sensible to research the process carefully and understand the different options available.
If you are considering using a claims company, review the terms closely. Some firms may charge fees even if a claim is unsuccessful, while others operate on a no-win, no-fee basis.
It is also worth reviewing older finance agreements rather than focusing only on recent ones. Given the FCA’s findings, multiple historic agreements could potentially be relevant.
In some situations, families may also be able to investigate agreements held by relatives who have since passed away.
Weighing Your Options
The increase in PCP finance claims has created an opportunity for many consumers to recover money they may potentially be owed. While claims management companies can offer convenience, it is important to recognise that they are not essential in order to make a claim.
With the right information and guidance, many people may feel comfortable handling the process themselves and retaining the full amount of any compensation awarded.
At the same time, others may decide that the convenience and support offered by a claims company justifies the fees involved.
Ultimately, the best approach will depend on your personal circumstances, confidence in managing the process, and willingness to balance potential costs against convenience.
