Mis-sold Personal Contract Plans (PCP) - The FCA review

Personal Contract Plans (PCPs) have been the subject of scrutiny in the UK due to potential mis-selling practices. The regulators, The Financial Conduct Authority (FCA), have carried out a thorough review. This article takes a look at their findings, issues and actions.

Concerns have been raised about the way PCPs were sold to consumers, including issues related to transparency, affordability assessments, and the potential for misleading information. Some of the key concerns regarding mis-selling of PCPs include:


  1. Lack of Transparency: Consumers may not fully understand the terms and conditions of PCPs, including the potential costs and risks associated with the agreement. This lack of transparency can lead to misunderstandings and unexpected financial obligations.


  1. Affordability Assessments: There have been cases where the affordability assessments conducted by lenders did not adequately consider a borrower’s financial situation, leading to individuals entering into PCP agreements that they may not have been able to afford in the long run.


  1. Commission Structures: The commission structure in the car sales industry has been a focus of attention. There have been concerns that high levels of commission may have incentivized dealerships and salespeople to promote PCPs without adequately explaining the risks or exploring other financing options.


Regulators, including the Financial Conduct Authority (FCA), have been actively addressing these issues and taking steps to ensure fair treatment of consumers in the PCP market. The FCA has conducted investigations, issued guidance, and introduced regulations to improve the sale and financing of motor vehicles, including PCPs.

The full report from the FCA can be found HERE 

Essentially, do any of the following apply to you?

  • You were not given good advice on how much the vehicle would be worth at the end of the contract.
  • You were not advised about penalty fees if you switched your vehicle early.
  • You were not made aware of alternative finance options.
  • You were not informed of the commission the dealership would receive.
  • You were misled about interest rates.


If so, Sandstone Legal and our Associates can help, reviewing your potential claim and acting on your behalf to seek redress.

We offer our service on a ‘no win, no fee’ basis. To find out more and to start your potential claim CLICK HERE

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