Between school runs, packed lunches and the never-ending laundry pile, it is easy to put financial admin on the back burner – but if you are a mum who signed a car finance agreement between 2007 and 2021, there is something you should know. Your deal may not have been as fair as it seemed, and you could have the right to take action.
Many families financed their cars using a popular method known as Personal Contract Purchase, or PCP. While these agreements offered flexibility and low monthly payments, they also came with terms that were not always explained clearly. That is why a growing number of parents are now taking a closer look and submitting car finance claims where mis-selling occurred.
Here is your straightforward, no-nonsense guide to what it all means and how you can check your own agreement from home.
What Is a PCP Agreement?
One kind of auto financing that lets you drive a car for a certain amount of time while paying monthly payments is a Personal Contract Purchase agreement. Typically, you have three choices at the end of the term:
- Return the car and walk away
- Pay a final “balloon” payment to own the vehicle
- Trade it in for a new finance deal
This setup appeals to many parents because it keeps monthly costs predictable and provides access to newer vehicles. While the benefits are clear on paper, the small print has caused problems for many consumers.
What Counts as Mis-Selling?
Just because a deal was agreed to does not mean it was fair. A PCP agreement is considered mis-sold when key details were left out, were confusing or were misleading. The most common problems include:
- Not being told the salesperson earned commission on your deal
- Being charged a higher interest rate because of hidden commission
- Not being shown other finance options
- Having balloon payments explained poorly or not at all
- Not being told about mileage restrictions or end-of-term penalties
- Feeling rushed or pressured into signing
These might not sound serious at first. But they can add up to unexpected costs, especially for families already managing tight household budgets.
Why This Matters in 2025
There is growing awareness across the UK about unfair car finance practices. Investigations, news reports and regulatory guidance have highlighted just how many consumers may have been affected. If you signed a PCP agreement between 2007 and 2021, it is worth checking whether you were given full and fair information at the time.
Even if the car has been returned or paid off, you could still be eligible to raise a PCP claim. Many parents are now revisiting their old paperwork with fresh eyes and in some cases, submitting a car finance claim to recover costs they should never have paid.
Quick Check: Was Your PCP Deal Mis-Sold?
You do not need to be a finance expert to do a basic review of your agreement. Ask yourself the following:
- Did the salesperson tell you they were earning commission?
- Were you told how your interest rate was set?
- Did anyone explain the balloon payment in detail?
- Were you given the chance to consider different finance options?
- Were mileage limits or return fees clearly outlined?
- Did you feel rushed, unsure or pressured during the sale?
If you answered yes to one or more of these, it may be worth looking into a car finance claim.
What Does a Car Finance Claim Involve?
Submitting a claim is a formal way to challenge a finance agreement you believe was not fairly presented. You do not have to go to court, and you can often begin with a simple written complaint to your finance provider.
If they do not resolve your concerns fairly, the case may be escalated to the Financial Ombudsman. This is especially relevant if the vehicle was for personal use.
There are also tools online that can help you check whether your PCP claim may qualify without needing to send any paperwork upfront.
How to Start the Process
Taking the first step is easier than it sounds. Here is what you can do today:
1. Gather Your Documents
Look for your original finance agreement, emails from the dealership or any sales brochures. Even if some items are missing, start with what you have.
2. Review the Details
Focus on interest rates, balloon payments and whether commission was disclosed. Was everything made clear at the time of purchase?
3. Use an Eligibility Checker
Many websites now offer free tools that can help you assess whether your case might be valid.
4. Raise a Complaint
If you think you were misled, send a complaint to your finance provider outlining your concerns. Attach any documents that support your case.
5. Keep a Record
Save copies of emails, call logs and letters. If you escalate the complaint, you will want a clear timeline of events.
Why This Is Worth Your Time
Between parenting and work, it might feel like just one more task on your to-do list. But taking ten minutes to check your car finance deal could make a meaningful difference to your household budget. Even if you find that your agreement was fair, the peace of mind is worth it.
If your claim is successful, it could result in a refund of interest or other charges. More importantly, it contributes to a wider effort to hold finance providers accountable for how they treat customers.
Final Thoughts
As a parent, you make countless decisions every day. Some are big, some are small, but all are made with your family’s wellbeing in mind. Revisiting your old car finance agreement might not feel urgent, but it could uncover something that was not as fair as you were led to believe.
A car should make your life easier, not quietly cost you more than it should. If you financed your car between 2007 and 2021 and suspect the terms were unclear, checking your eligibility for a car finance claim is a sensible next step.
Whether it leads to a PCP claim or simply confirms your deal was handled properly, you deserve to know the truth behind what you signed. Your time is valuable, and your finances deserve the same care and attention you give to everything else in your family’s life.
