The Timeline of PCP Complaints & Claims: Key Developments in Consumer Rights

The personal contract purchase (PCP) claims timeline has undergone substantial developments over the revent years, especially with the shifts in legal and regulatory practices. These changes grants an advantage to UK consumers who may have been misled into unfavourable car finance terms, especially concerning commissions.

Recent legal decisions have changed the landscape of the investigation, broadening it to include non-discretionary commissions, otherwise known as fixed commissions. Prior to this, only complaints associated with DCAs were considered eligible for car finance compensation.  As awareness of consumer rights and protections becomes wider, the updates offer essential insights for anyone looking to file a mis-sold car finance claim. Keep reading to know more about the key developments in consumer rights related to the PCP claims timeline.

Timeline of Key Events

 2007–2021: Foundations of Eligibility

Consumers who entered into PCP mis-sold agreements during this period may be eligible to claim if their agreements involved undisclosed or discretionary commissions. This timeframe has been the focus of many complaints filed under the DCA framework.

With the aim of addressing complaints associated with the DCAs for vehicle finance agreements conducted before January 28, 2021, the FCA has temporarily introduced a new set of rules. These temporary regulations will be primarily targeted toward vehicles that have been purchased and financed via DCA agreements. These encompass a wide range of vehicle types, from cars, vans, campervans, and motorbikes. It is important to note, however, that these rules do not apply to hire arrangements, such as personal contract hire (PCH) agreements.

October 25, 2024: Court Ruling

The Court of Appeal delivered a pivotal ruling, declaring it unlawful for dealers to receive commissions without properly informing customers. This decision not only impacts future agreements but also opens doors for car finance claims on past contracts involving both discretionary and fixed commissions.

November 13, 2024: FCA Proposal

Following the court ruling, the FCA proposed an extended timeline for firms to respond to complaints. These deadlines include either May 31, 2025, or December 4, 2025, ensuring consumers have ample time to initiate claims.

Important Deadlines and Eligibility for Claims

To ensure your claim is valid, understanding the key deadlines is crucial. The FCA has clarified that consumers receiving final responses to their complaints have 15 months from the date of response to escalate their case to the Financial Ombudsman Service. Thus, the absolute deadline for filing these complaints is July 29, 2026.

FCA Timeline for Resolving Complaints

The introduction of temporary regulations broadens the opportunity for consumers to file claims. This extension likewise empowers consumers to seek compensation for wrongdoings they may have experienced due to the car finance dealer. Moreover, this initiative reflects the FCA’s dedication to addressing issues within the financial services industry, especially those that pertain to the car finance sector.

The FCA has established specific timelines for addressing consumer complaints. The FCA and its related firms are mandated to acknowledge consumer complaints within three business days. Meanwhile, these organisations are expected to deliver their final response to these complaints within eight weeks.

Complainants who are planning to file claims should bear in mind that given the complex nature of car finance claims, particularly those related to historical commission structures, the FCA has put forward the idea of possibly extending the resolution timeframe. This proposed extension seeks to point out the importance of filing complaints in an immediate manner to prevent delays in resolution.

If this proposal is accepted, firms will be given up to 45 weeks to resolve the complaints. Changes are slated to take effect by mid-December 2024. This extension gives FCA firms to opportunity to conduct more detailed evaluations of complaints they receive. However, this likewise changes the trajectory of the timeline. Although this may result in more thorough investigations, consumers can also expect longer wait times.

Consumers who believe that their complaints have not been addressed within the standard operating timelines have the option to further escalate the matter to the Financial Ombudsman Service.

Final Thoughts

The PCP claims process puts a stronger focus on consumer rights within the motor industry. With the FCA’s active pursuance of consumer protection and accountability from firms, UK drivers now have better access to resources and support needed to challenge mis-sold car finance arrangements. As the regulatory framework continues to evolve, consumers must remain vigilant and take swift action to secure redress.