Make Your BMW PCP Claim Today

BMW PCP No Win, No Fee Claims

UK residents who entered into a PCP (Personal Contract Purchase) agreement to buy a new or used BMW car before 28 January 2021 may be able to secure compensation from a mis-sold car finance claim if they were not told about the commission arrangements between the salesperson and the finance company on their finance agreement. In some cases, this led to unfair or higher interest rates in the agreement, meaning what could have been low monthly payments on their car finance agreement were higher than they should have been.

Can I Make A BMW PCP Claim Now?

You can start a BMW Select PCP claim now. However, whilst the FCA is conducting its investigation, it has paused the eight-week deadline for finance firms to provide a final answer to customer complaints about Discretionary Commission Arrangements (DCAs) on mis-sold PCP agreements.

The FCA was due to make an announcement in September 2024, but this deadline has been extended to May 2025, partly because the FCA was waiting for the outcome of a case in the Court of Appeal. The reason is to protect motorists from inconsistent outcomes while the FCA conducts its investigation and to allow time for them to assess the issue and work out a way forward.

This may include an industry-wide consumer redress scheme to ensure a fair and consistent outcome for all claimants with a PCP contract. Some commentators are comparing it with the PPI scandal between 1990 and 2010.

If you had a PCP agreement taken out before 28 January 2021 on a BMW car, you can still register your potential claim and start your claim today.

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 finance agreement and see if there was a dealer commission arrangement.

Why Choose PCP Claims UK For Your BMW PCP Claim?

We will put you in touch with the UK’s top PCP claims companies to help you recover 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 agreement with BMW Finance. It’s strictly no win, no fee, and it’s entirely 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 qualify.

How Did The Issue Of Mis-Selling On BMW Car Finance Contracts Come To Light?

Before 2021, a car dealer’s commission could be improved by adjusting the interest rate on a Personal Contract Purchase (PCP) agreement. If the rate was higher, the dealer received a larger commission for the car loan. Often, this was not disclosed to the customer. A new BMW would, during this time, come at a higher cost for the customer, and only the car dealer and lender would benefit, with the buyer knowing nothing about it.

The Financial Conduct Authority (FCA) banned discretionary commission arrangements in 2021, removing the incentive for brokers and dealers to increase the interest rate a customer pays on their motor finance.

The FCA’s investigation into historic PCP mis-selling began in January 2024 when the Financial Ombudsman Service (FOS) decided in favour of a customer and against Barclays, the finance provider. FOS stated that Barclays had unfairly paid a commission to a broker.

Barclays has gone to the High Court to seek a Judicial Review of the decision, which the Financial Ombudsman Service opposes.

In the meantime, the Court of Appeal decided in October 2024 that hidden commissions paid as part of a car finance agreement must be revealed to the customer so they have all the facts.

Customers have filed many complaints to car finance companies requesting a review of commission arrangements on PCP agreements taken out before the ban took effect without their knowledge. Regulators have warned motor finance providers to set aside significant reserves for potential refunds.

If you took out a PCP agreement on a new or used car before 28 January 2021, you could be entitled to claim and receive compensation for mis-selling on your car finance loan.

A PCP agreement is different from a hire purchase agreement. It has monthly payments and an optional final payment, sometimes called a balloon payment. A BMW hire purchase agreement provided the nature of the finance agreement was never changed from hire purchase to PCP, won’t be eligible for a claim in this instance.

DID YOU KNOW…

You may still be able to make a claim even if your PCP agreement ended more than six years ago, you have paid the loan off, or you no longer own the car. If you have an old PCP agreement and have only just found out about the issue, you potentially have three years to bring a claim.

Find Out If You Have Been Affected By A DCA On Your BMW PCP Agreement

You may be affected if:

You bought a BMW car (from the entire BMW range) at a dealership under a PCP finance scheme with BMW Financial Services or another finance provider they used before 28 January 2021
A finance claim affects new and used BMW models and includes part exchange where you traded in an old vehicle to use the value to pay towards the agreement
There was a discretionary commission arrangement between the car finance provider and the broker or dealer, which you were not aware of

Most car finance providers are waiting for the outcome of the FCA investigation. However, you can still start a claim today by finding out if the lender had a discretionary commission arrangement in place that was hidden from you.

If your car finance agreement was signed after 28 January 2021, this investigation won’t apply, as discretionary commission arrangements were banned after this date.

Other Motor Finance Companies Involved In PCP Arrangements

Car dealerships supply finance in different ways. Some use their own financial services companies, such as BMW Financial Services or Toyota Financial Services, whilst others use industry providers like Black Horse Financial Services, Santander, Barclays, and Close Brothers.

It’s possible if you have more than one historic PCP finance agreement that they could be with two different finance companies. It means you will have two claims against two different lenders if there was a discretionary commission arrangement on your PCP car finance.

A claim is based on the fact that BMW misled motorists by mis-selling finance packages without revealing hidden commissions and that they would receive a higher commission payment if the interest rate on the agreement were also higher.

How Much Compensation Could I Get For A BMW PCP Claim?

In one mis-sold car finance case where the Ombudsman found in favour of the consumer, the claimant was charged 5.5% on their PCP agreement, whereas they could have received a much lower rate of 2.49%. That’s more than double!

You might be entitled to the return of the difference between the interest rate you were charged on your BMW Select PCP agreement and what was available at the time, which could amount to thousands of pounds. Plus, you will also receive statutory interest on each overpayment at a rate of 8%.

It’s important to note that excess mileage, vehicle condition, or any of the other usual suspects in car claims do not affect compensation here. Either you overpaid on your BMW finance offers, or you didn’t.

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BMW PCP Claims FAQs

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

What exactly is a PCP finance agreement?

PCP car finance is a car loan that allows you to buy a car with borrowed money. It's flexible so you can choose what to do as the final payment approaches. For example, you may take a PCP contract out over 5 years; then, as the final payment approaches, you can choose whether or not you return the car to the dealership or pay the final payment, known as a 'balloon payment' to own the vehicle. You can also pay the car's resale value and keep it or use the resale value as a downpayment for another car (usually with the same dealership for even better rates).

Should I wait to start a claim because of the FCA investigation?

You should still begin your claim today. We can start by finding out whether your PCP car finance agreement with BMW Financial Services was subject to a discretionary commission arrangement. Your motor finance provider should be able to answer this question. However, it won't have to respond to your complaint until after the FCA's announcement, May 2025, at the earliest.

What types of motor finance agreements are under investigation?

The FCA is looking at historic commission arrangements between consumers and brokers/finance providers. This includes Personal Contract Purchase agreements (PCP), but the mis-sold car finance investigation doesn't include BMW Personal Contract Hire (PCH), which involves leasing rather than buying a vehicle.

What will it cost me to start a PCP claim?

Absolutely nothing. There are no upfront fees or charges: you will only pay a small percentage of your compensation award if you receive one.

How far has the FCA got In its investigation?

The Financial Conduct Authority is using its power under section 166 of the Financial Services and Markets Act 2000 to review motor finance commission arrangements on historic PCP agreements. Consumers have already complained about discretionary commission arrangements (DCA) to motor finance companies and brokers. The Financial Ombudsman Service has received complaints from over 10,000 people who think they have been charged too much on their finance agreement. Motor finance providers have rejected many complaints, and there have been disputes about whether firms have breached regulatory requirements. Some claimants have taken their cases to the Financial Ombudsman Service (FOS), and others to the County Court if their finance provider has repudiated their claims. The situation is still unfolding, and the FCA will announce another update on the progress of its review by May 2025.

Start Your BMW Claim Today

Even though the FCA is still conducting its reviews, you can still claim compensation today by finding out whether there was a discretionary commission arrangement on your PCP agreement on your BMW vehicle.

If there was, and you weren’t told about it, you could have paid a higher interest rate, affecting every monthly repayment on your loan amount, potentially amounting to thousands of pounds. Your motor finance could have been cheaper; now it’s payback time!

If your car finance agreement was subject to an undisclosed discretionary commission arrangement then you can start a free claim with our recommended solicitors, experts in this field. There is no charge unless you are awarded compensation.