For many UK drivers, purchasing a car through finance has become almost second nature. One of the most common methods—Personal Contract Purchase, or PCP—has been widely promoted for its flexible terms and lower monthly costs. But behind the marketing, a growing body of evidence suggests that many of these agreements were not as transparent as they should have been.
Legal professionals and consumer advocates are now scrutinising how these deals were sold. As the scale of mis-selling becomes more apparent, so too do the potential legal consequences. Understanding how this happened, and what it could mean for affected consumers, is crucial for anyone who entered a PCP agreement between 2007 and 2021.
What Exactly Went Wrong?
At the heart of the issue lies a lack of full disclosure. Many consumers who entered PCP agreements were unaware that dealers could earn commission by adjusting the interest rates offered. The more expensive the deal for the buyer, the higher the commission for the broker or dealership.
In many cases, customers were not informed about this commission structure at all. Instead, they were simply presented with an agreement and encouraged to sign—believing the interest rate and terms were fixed or standard. This lack of transparency has sparked a wave of complaints and a growing legal movement to investigate the fairness of those contracts.
Examples of Mis-Selling
- Salespeople failing to explain optional final payments (commonly known as balloon payments) properly
- Interest rates that were inflated without the customer’s knowledge
- Customers placed into agreements they could not realistically afford
- Little to no explanation of alternative finance options that may have been more suitable
Why PCP Mis-Selling Matters in Law
From a legal standpoint, these issues represent a breach of fair practice. Financial agreements must be sold clearly, with all key terms properly explained. If a customer is unaware of a significant part of the agreement—such as hidden commissions—then the contract may be deemed unfair or mis-sold.
In recent years, UK regulators and legal bodies have taken greater interest in consumer financial rights. When patterns of mis-selling appear across multiple providers, they can trigger broader reviews and compensation frameworks. That is exactly what is now happening within the car finance sector.
Why PCP Claims Are Rising Now
The surge in PCP claims reflects a broader shift in public awareness. For years, many consumers simply accepted their finance terms without question. But with growing media coverage and clearer legal guidance, drivers are now more willing to question whether they were treated fairly.
PCP claims are valid for agreements signed between 2007 and 2021, which covers a large portion of car buyers over the past two decades. This time frame is significant, as it spans the years when discretionary commission models were most commonly used.
Today, drivers are reviewing their options. Some are speaking to legal advisers. Others are using online tools to assess whether they have a case. The process is becoming more accessible—and the implications for lenders are becoming more serious.
Understanding Black Horse Finance Claims
While many providers are facing scrutiny, Black Horse Finance claims have drawn particular attention. As one of the more prominent finance names involved in PCP deals, their agreements are part of the growing investigation into potential mis-selling practices.
Consumers who took out finance through this lender are now reviewing their paperwork, with legal professionals helping to identify signs that key information may have been omitted. Importantly, the spotlight is not on individual dealerships or consumers, but rather on whether the agreements were fundamentally fair.
Black Horse Finance claims are not unique. They are part of a larger wave of cases where consumers believe they were offered deals that prioritised profit over transparency.
Signs You Might Have Been Mis-Sold
If you entered into a PCP agreement during the eligible period, here are some warning signs that suggest you may have grounds for a claim:
- You were unaware that the dealer could adjust the interest rate or earn commission
- The final balloon payment was not properly explained at the time of signing
- You felt pressured into the agreement without being shown other finance options
- You were told the deal was the best available, without a clear comparison
What Could Happen Next?
If the legal momentum continues to build, PCP mis-selling could become one of the largest consumer finance issues of the decade. Just as other financial scandals have led to widespread compensation in the past, this situation has the potential to reshape trust and standards within the automotive finance industry.
More importantly, affected consumers may be entitled to some form of redress. Depending on the outcome of investigations and individual claims, this could include refunds, adjustments, or other compensation for overpaid interest and unfair terms.
The Role of Legal Professionals
Law firms specialising in financial misconduct are now actively taking on clients who believe they’ve been mis-sold PCP agreements. Their role is not just to help with claims but also to hold lenders accountable for the contracts they’ve offered in the past.
The legal process may vary, but many firms start by assessing the agreement, reviewing communications, and identifying any red flags. With the correct documentation, they can build a case for compensation based on consumer rights legislation and the principles of fair financial practice.
Final Thoughts
The growing number of PCP claims shows that mis-selling in car finance was not a one-off event. It was, in many cases, a systemic issue rooted in profit-driven models that lacked transparency. As more drivers examine the fine print and ask difficult questions, the legal landscape continues to shift.
For anyone who entered into a PCP agreement between 2007 and 2021, now is the time to reflect. If the deal wasn’t clearly explained, if you paid more than expected, or if you were steered toward a specific option without proper advice—you may have been mis-sold.
Understanding your rights isn’t just about seeking compensation. It’s about ensuring that the car finance industry treats consumers with the fairness, respect, and transparency they deserve.
