Mis-sold car finance FCA announcement

The FCA’s decision to expand its investigation into the mis-selling of personal contract purchases (PCP) and hire purchases for cars is a significant development. Including all types of finance deals – not only contracts that included discretionary commission agreements (DCAs) – could at least double the number of people entitled to compensation from previous estimates of around 10 million.

“An outcome from the FCA’s investigation is not expected until May 2025, but if you bought a car through a PCP or hire purchase prior to January 2021 the time to take action is now. The scale of the mis-selling scandal could be greater than PPI and initial estimates suggest that the average compensation per affected consumer could be as much as £1,100.

“While the FCA has temporarily paused responses to complaints as it reviews the issue, it is still a good idea to look at your options. Start by collecting all relevant documents, including your original contract, reference numbers, and any correspondence related to your finance agreement. At the same time, consider consulting a legal advisor specialising in financial mis-selling, who can help you determine if you were affected, whether you are entitled to complain, and assist in obtaining additional records and evidence.

“Acting now will ensure that your case is in the queue and ready for processing once the investigation concludes. There will be a long backlog of cases to work through and having yours logged sooner rather than later can only put you in a better position to receive any compensation due in a timely manner.”

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As featured on Edinburgh Chambers of Commerce