PCP Finance Claims and Your IVA – Frequently Asked Questions (FAQs)
Understanding the Claim
What is a PCP finance agreement, and how do I know if I had one?
A PCP (Personal Contract Purchase) finance agreement is a type of car finance deal that allows you to pay monthly instalments for a car, with the option to buy it at the end of the term with a final “balloon” payment. You may have had one if you financed a car through a dealership or lender. If you’re unsure, we will help identify whether you had a PCP agreement as part of our checks.
What is an undisclosed or discretionary commission, and how would I know if that applies to me?
This refers to commission payments made by lenders to brokers or dealers, where the customer was not made aware of the commission or how it could influence the cost of the agreement. These types of arrangements may now be subject to redress following recent legal and regulatory developments.
Do I need to do anything right now to see if I’m eligible to make a claim?
No. As your IVA Supervisor, we are responsible for investigating any potential claims. We will carry out initial checks and contact you if we need further information. It is important to note that you are required to assist your Supervisor as per the terms and conditions you agreed to when entering into the IVA, failure to assist when required may constitute a breach of the arrangement.
If my PCP agreement ended years ago, can I still make a claim?
Yes. Even if your agreement has ended, you may still be able to claim compensation depending on the circumstances and timing of the agreement.
Will you be checking if I had any PCP finance, or do I need to provide that information?
We will begin by conducting checks using the information we have. If we require additional details, we will contact you directly.
Your IVA and Any Claim
What does it mean that the claim is part of my "IVA estate"?
This means that any compensation from a claim is considered an asset of your IVA and must be paid into the arrangement for the benefit of your creditors.
Will I personally receive any of the money if the claim is successful?
Any redress must be paid into your IVA and cannot be retained by you. In some circumstances, due to the value of the redress received, you may be in a position to pay your creditors in full and have surplus funds. If this happens you may receive some of the redress and we will contact you to arrange this.
Will any money from a claim reduce how much I still need to pay into my IVA?
This will depend on your individual circumstances, but in most cases you will still need to keep making your normal contributions to your IVA.
The Claims Process
When will I hear more from you? Is there a specific date I should expect further communication?
We will contact you again shortly with more details. At this stage, there is no fixed date, but rest assured we are actively progressing this matter and will keep you updated.
How long does the process take once it starts?
Timeframes can vary depending on the complexity of the claim, lender response times, and any further regulatory developments. We will aim to complete the process as efficiently as possible and provide updates along the way.
Who is the "specialist" you're using, and how are they chosen?
The specialist we have appointed to handle these claims is a company under common ownership with Financial Support Systems. We have conducted thorough due diligence and are confident in their ability to manage your claim securely and effectively. They are authorised and regulated by the Financial Conduct Authority and bring many years of experience in handling financial claims, with a strong track record of safeguarding customer data.
Will I need to sign anything or provide documents to support a claim?
Possibly. If we need further information, such as copies of finance agreements or a signed Letter of Authority (LoA), we’ll contact you with clear instructions.
Other Claims and Communications
What if I’ve already been contacted by a claims company—what should I do?
Please do not engage with any third-party claims companies or solicitors. Your IVA Supervisor is responsible for handling all claims during your arrangement. Appointing someone else could result in you being personally liable for their fees.
What if I’ve already submitted a claim myself—do I need to cancel it?
If you have already submitted a claim you will need to provide us with the information about your claim and your Insolvency Practitioner will take over the claim, please send any information you have about this to carfinance@financialsupportsystems.co.uk
Does this apply to other types of finance, like hire purchase or loans?
At this stage, the focus is on PCP agreements involving undisclosed or discretionary commission. However, we will review any other financial products where there may be a basis for a claim as part of our investigations.
Can I still make other types of financial claims while in an IVA?
No. All claims for financial compensation, including PPI, bank charges, payday loans, and PCP commission, form part of your IVA estate. Your Supervisor must manage them, and you should not pursue these independently.