Claiming PCP Compensation: Doing It Yourself vs Using a CMC

One of the most common questions people ask when they hear about the PCP mis-selling scandal is whether they need to use a claims management company (CMC) or whether they can claim for themselves. The honest answer is: you can absolutely claim for yourself, for free. But there are real reasons why many people choose to use a CMC, and it is worth understanding both options before deciding.

This guide gives an honest comparison of both routes.

The DIY Route

Option 1: Complain directly to your lender

The first step in any PCP or HP mis-selling claim is to write a letter or email to your lender — the finance company, not the car dealer — asking them to investigate whether a discretionary commission arrangement or other undisclosed commission was applied to your agreement.

Under normal FCA complaint-handling rules, the lender would have eight weeks to respond. However, the FCA has granted lenders extended timescales during the current investigation, so direct complaints may take longer to process.

You do not need to pay anyone to do this. Your lender's complaints contact details can usually be found on their website or on your original finance documents.

What you need:

The lender's name and complaints contact
The approximate start date of your agreement
Your personal details (name, address at time of agreement, vehicle details if possible)

What to write: A simple letter stating that you believe you may have been subject to a discretionary commission arrangement on your finance agreement, that this was not disclosed to you, and that you would like them to investigate and explain what commission arrangements applied.

Option 2: Use the Financial Ombudsman Service

If your lender rejects your complaint, or if you are unhappy with their response, you can refer the case to the Financial Ombudsman Service (FOS) for free. The FOS is an independent body that adjudicates disputes between consumers and financial firms.

The FOS is currently managing a significant backlog of motor finance complaints, but it is actively handling cases. Referring to the FOS is free, and the FOS can order the lender to pay compensation if it upholds your complaint.

Timing note: Some FOS cases for motor finance are on hold pending the outcome of the FCA's investigation and the Supreme Court ruling. This may affect how quickly individual cases are resolved.

Option 3: Wait for the FCA Redress Scheme

The FCA is consulting on an industry-wide redress scheme. If this scheme is confirmed in its proposed form, lenders may be required to identify and compensate affected consumers automatically, or through a simplified process — potentially without consumers needing to have lodged individual complaints.

If this happens, waiting could result in receiving compensation without having done anything at all, for free.

The risk of waiting: The scheme is not yet confirmed. Timelines could slip. And if you have an ongoing claim through a CMC or have lodged a complaint directly, you may be better positioned when the scheme opens.

Using a Claims Management Company (CMC)

A claims management company like The PCP Team manages the claims process on your behalf. Here is what that typically involves:

What a CMC Does

Reviews your agreement to assess whether a claim is viable
Lodges the complaint with the lender on your behalf, citing the relevant legal and regulatory basis
Manages correspondence with the lender
Refers the case to the FOS if needed
Monitors the FCA scheme and progresses your claim within it
Keeps you updated throughout

What It Costs

CMCs work on a no win, no fee basis. If your claim is unsuccessful, you pay nothing. If compensation is recovered, a success fee applies — typically between 15% and 30% plus VAT, depending on the CMC and the size of the claim.

On the FCA's estimated average compensation of £700, that means a fee of approximately £126–£210 plus VAT. You would receive somewhere between £450 and £540 net after the fee.

This is less than you would receive if you claimed for free directly. That is an important point, and it is something reputable CMCs are required to disclose clearly.

When Does Using a CMC Make Sense?

A CMC may be the right choice if:

You don't have the time or confidence to research and manage the complaint yourself
You have multiple agreements and want everything handled at once
You prefer not to deal with lenders directly
The process stalls and you want professional escalation
You want certainty that the complaint has been properly structured

A CMC may not be the right choice if:

You are comfortable writing to your lender yourself
You are willing to wait and see whether the FCA scheme pays out automatically
The compensation amount is small enough that the fee significantly reduces the value

An Honest Assessment

There is no objective 'right answer'. The right choice depends on your personal circumstances, how much time you have, how comfortable you are managing financial correspondence, and how important it is to you to receive the maximum possible amount.

What we can say honestly is:

You will always be better off financially if you claim for free — whether directly with your lender or through the FOS.
CMCs provide genuine value for people who want the process managed professionally, who have multiple agreements, or who find the process daunting.
Both routes are legitimate and lead to the same underlying claim. A CMC does not have special access or higher success rates that are not available to individuals — they simply do the legwork for you.
The FCA redress scheme may eventually mean that some affected consumers receive compensation automatically without needing to have done anything — whether through a CMC or independently.

Questions to Ask a CMC

If you are considering using a CMC, here are five questions worth asking before you sign anything:

What is the exact success fee percentage, including VAT, that applies to my claim?
What happens if the compensation is offset against an existing debt — do I still owe the fee?
What is the 14-day cancellation policy?
Are you registered with and authorised by the FCA for claims management activity?
Can I see a copy of the Terms of Engagement before I commit?

Any reputable CMC should be able to answer all of these clearly.

Summary

| | DIY (Direct Lender) | DIY (FOS) | CMC | |---|---|---|---| | Cost | Free | Free | Success fee (15–30% + VAT) | | Effort | Medium | Medium–High | Low | | Timeline | Extended | Extended | Managed for you | | Multiple claims | You manage each separately | You manage each separately | Handled in one process | | FCA scheme benefit | You can still benefit | You can still benefit | CMC progresses through scheme |

The most important thing is to act. Whether you claim directly or use The PCP Team, the longer you wait, the more likely it is that records become harder to access and timelines extend further.

The PCP Team is a trading style of Credit Claim Assist Ltd, authorised and regulated by the Financial Conduct Authority for claims management activity (FRN 832480). Using a claims management company may reduce the net amount you receive.