Audi PCP Claim: Your Guide To Mis-Sold Car Finance Compensation

Audi PCP No Win No Fee Claims

UK residents who entered into a PCP (Personal Contract Purchase) car finance agreement to buy a new or used car before 28 January 2021 with car finance providers may be able to claim compensation if car dealers did not tell them about commission arrangements when they took out the car finance agreement. In some cases, lenders systematically incentivised brokers so that a car dealership mis-sold car finance by adding higher interest rates to UK car finance agreements in order to obtain bigger commission payouts. Some monthly payments on car finance agreements were much higher than they should have been, and now you can claim compensation from your car finance provider.

Let us put you in touch with the UK’s leading PCP claims solicitors to help you apply for compensation. It’s on a strict no win no fee basis, so you won’t pay a penny unless you receive compensation, and it’s free to check!

Why Choose PCP Claims UK

We will put you in touch with the UK’s top mis-sold car finance claims specialists to help you claim compensation for higher interest rates and inflated monthly repayments from dealers and brokers who didn’t give you all the facts at the start of the Personal Contract Purchase agreement. It’s strictly no win, no fee, and it’s completely free to check.

Claim £1000s – Receive compensation for your mis-sold PCP finance agreement.
Work with the pros – We team you up with the UK’s leading PCP claim solicitors.
No win, no fee – Our no win no fee basis means no financial risk to you.
60 second form – Fill in our form to find out if you have a claim.
Zero risk – We only share your data with solicitors if you’ll qualify.

Personal Contract Purchase (PCP) Explained: How It Works

With multiple car finance options available, it’s important to know exactly which deal you were on. Knowing how PCP car finance works is also important to determine if you were mis-sold car finance and need to take it to a PCP claims management company or solicitors to seek compensation for your overpayments.

PCP finance is an extremely popular type of car finance offered by car dealers; 80% of new cars are financed via these motor finance agreements.
PCP plans are structured with an upfront payment followed by a series of monthly repayments, similar to a hire purchase agreement, except there is usually a lump sum payment at the end of an agreement, often called a balloon payment.
PCP is the most popular car finance offered by vehicle finance providers, as it is more cost-effective for many customers because it accommodates the amount of depreciation in the vehicle.
Other types of car finance agreements include lease agreements and personal contract hire (PCH), but these are not available for making a claim in the same way PCP is.

How Was Mis-selling On Car Finance Contracts First Discovered?

Before 2021, a car dealer could raise their commission on a car finance agreement by imposing higher interest rates. Often, this discretionary commission arrangement was not disclosed to the customer, and the cost of a new or used Audi motor vehicle was inflated, with the consumer meeting higher monthly payments. Nobody knew other than the dealer.

The FCA began investigating mis-sold car finance claims in January 2024 after a case presented to the Financial Ombudsman Service was decided in favour of the consumer. This involved a PCP finance agreement provided by Barclays, who had paid a commission to a broker not revealed at the time.

Barclays has since taken this case to the High Court and is awaiting Judicial Review of the decision.

Even though discretionary commission arrangements are now banned on car finance deals, there has been an avalanche of complaints from consumers with an Audi vehicle about poor advice, hidden costs, and a potentially inflated interest rate on their historic car loan.

If you took out a PCP agreement on a new or used Audi before 28 January 2021, you may be entitled to compensation from your finance company for PCP mis-selling.

DID YOU KNOW…

You may still be able to make a claim even if your PCP finance agreement ended more than six years ago, you have paid the loan off in full and own the car outright, or even if you no longer have the car. If you have an old car finance agreement and have only just found out about mis-sold car finance claims, you may have three years to bring a claim for car finance mis-selling.

What Is Mis-Sold Car Finance?

Mis-sold car finance occurs when a customer is not given all of the information about discretionary commission arrangements by car salesmen when they enter into a car finance loan.

The Financial Conduct Authority (FCA) started an investigation into car finance mis-selling where car finance agreements were subject to undisclosed or hidden commissions. The Financial Ombudsman Service has received thousands of complaints.

You can start a PCP claim now. However, whilst the FCA investigation is ongoing, it has paused the standard eight-week deadline for financial institutions and motor dealers to submit a final answer to consumer complaints on mis-sold finance packages for a mis-sold PCP agreement.

This pause on car finance claims will last until May 2025. The FCA will have time to investigate high-pressure sales tactics and discretionary commission arrangements and ensure a fair way forward on motor vehicle complaints so that a standardised procedure and industry-wide redress scheme are in place.

Treating customers fairly may involve a compensation scheme, with compensation calculated to reflect the hidden costs in a car finance agreement. Some expert commentators are comparing this new car finance scandal to the mis-selling of PPI.

If you had a PCP agreement taken out before 28 January 2021, you can still register your car finance claim and should do this without delay.

Want to find out more? Read on or get in touch with us today. We’ll connect you with a law firm that works on a No-Win, No-Fee basis, so it won’t cost you anything to check your PCP finance agreement and see if there was a dealer commission arrangement.

Eligibility For Mis-Sold Audi Car Finance Compensation

You could be eligible to claim compensation for mis-sold car finance on a PCP finance deal if you bought a new or used Audi from 2007 onwards up until 28 January 2021.

In 2021, the Financial Conduct Authority banned discretionary commission arrangements, so no car salesperson or dealership could increase the interest rate on finance agreements in return for a higher commission payment.

Financial mis-selling depends on whether a sales person did not present information about a discretionary commission arrangement (DCA) and failed to discuss all the finance options available including the impact any commission would have on the interest rates on the agreement – and ultimately how much you pay each month.

A claim for mis-selling car finance depends on whether a customer is fully informed of all the different terms and conditions and given an adequate explanation with a clear breakdown of the costs.

How Much Compensation Could I Get?

You should be able to claim the difference between the interest rate you were charged on your required loan payments and a lower rate which might have been available to you if the car salesperson had received a lower commission and was honest about the commission they earned. On long agreements and high value cars, this could equal thousands of pounds. You will also be entitled to statutory interest of 8% on each overpayment.

There is one case where the FOS upheld a claim, and the claimant was entitled to the difference between the 5.5% charged on their car finance deal and a much lower rate of 2.49%, which cut the interest payments in half!

Make Appointment

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Support Your Claim

Provide any available evidence/documentation relating to your claim.

Allow Checks

Allow checks to be made to investigate whether you have a valid claim.

Leave It To Us

You’ll be referred to legal experts who will handle your claim and look to secure the PCP finance compensation you deserve.

What Happens Next?

The Financial Conduct Authority has power under section 166 of the Financial Services and Markets Act 2000 to review motor finance commission arrangements on historic car finance agreements.

The Financial Ombudsman Service has already received complaints from thousands of people about PCP mis-selling and who think they have paid too much interest on their car finance agreements.

Motor finance providers have rejected many of these complaints on finance agreements, disputing that they have not treated customers fairly.

Some claimants have already taken their cases to the lender directly or the Financial Ombudsman Service. There have also been examples of a car dealership or car finance brokers being taken to the County Court when they have rejected a customer claim for compensation.

At the moment, the motor industry is holding its breath. Many car finance companies are waiting for the FCA’s next statement before deciding what to do next.

The FCA has stated that it will issue another update by May 2025 at the latest. In the meantime, financial institutions have been warned to put aside reserves for sold car finance PCP claims.

Audi PCP Claims FAQs

Our most common PCP claim questions about Audi are answered for you below.

What do I need to demonstrate to make a mis-sold car finance claim?

You must have taken out a PCP (Personal Contract Purchase) agreement after 2007 and before January 2021. Hire purchase agreements do not form part of the FCA's review and neither will a personal loan. The car finance must have been subject to a hidden DCA which you knew nothing about, and this must have resulted in higher overpayments over the term of the agreement.

Is there any point starting a claim now whilst the FCA is conducting its investigation?

It's important to lodge your claim now because we can find out whether your car finance loan with Audi was subject to a discretionary commission arrangement. Motor finance providers are inundated with claims from unsuspecting customers so it's essential to act quickly. Your motor finance provider should be able to tell us whether there was any DCA on your finance deal, but it is unlikely that they will answer your complaint until the FCA issues its next statement.

Was Every Car Finance Agreement Sold with Hidden Commission Arrangements?

No, which is why it's important to establish the status of your car finance as early as possible. Some car finance was sold with no commission or a fixed commission fee, which was not related to interest rates set by car finance companies. Your paperwork (if you still have it) may tell you about commission payments, but if it doesn't, you should still make sure your finance deal is reviewed by one of our specialist lawyers so you don't miss out on possible compensation.

Can I Make a Car Finance Claim if I Bought a Used Car?

You can claim compensation for a mis-sold PCP agreement for used and new cars as long as you show that the finance scheme was mis-sold to you. The claim doesn't relate to the status of the vehicle and affects several motor manufacturers, not just Audi.

Start An Audi PCP Car Finance Claim Today

Even though the FCA is still reviewing the historic situation between car dealerships and PCP car finance agreements, you can still register your potential claim now. The first step is to determine if there was a DCA on your car finance deal.

If there was, and your car dealer or finance provider didn’t tell you, you might have paid higher interest rates impacting every monthly payment on your car finance deal. Over several years that’s going to add up to a lot of money! Motor vehicle finance providers have been overcharging unsuspecting customers for years.

The average compensation award for mis-sold car finance claims is £1,600, with some higher awards in excess of £3,000.

Start a free claim with our expert solicitors. There is absolutely no charge unless your claim is successful and you win compensation.