Buying a car is one of the biggest personal finance decisions many people make. Whether it was a sporty hatchback, a practical SUV or a reliable family saloon, thousands of drivers across the UK chose Personal Contract Purchase (PCP) finance agreements to help spread the cost. These agreements were often promoted as flexible, affordable and low-commitment. But behind the promises, not every deal was as fair as it seemed.
If your PCP agreement was signed between 2007 and 2021, you may be one of many people questioning whether the deal was sold to you properly. With growing awareness of car finance claims, it’s important to understand your rights, recognise the warning signs and know what to do next.
Understanding PCP and Why It Can Be Mis-Sold
Personal Contract Purchase (PCP) is a popular form of car finance in the UK. It allows drivers to make lower monthly payments, with the option at the end of the agreement to:
- Return the vehicle
- Trade it in for another
- Pay a final lump sum (commonly known as a balloon payment) to own the car
Although this structure is appealing to many, it can also be confusing. Important details may be glossed over at the point of sale, leaving buyers unaware of the full costs, restrictions or commissions involved. This has led to a surge in complaints and a rising number of car finance claims being pursued by consumers who feel they were misled.
Was Your Deal Mis-Sold? Key Questions to Ask
It’s not always obvious whether a finance agreement was mis-sold. However, the following checklist can help you decide if your experience raises any red flags.
1. Were you told about dealer commission?
In many cases, car dealers or brokers were paid a commission by the lender. Sometimes, this commission increased with the interest rate applied to your deal. If you were not informed about this at the time of purchase, your deal may not have been transparent.
2. Did you fully understand the balloon payment?
A final payment is a key part of any PCP agreement. If this cost was not clearly explained or came as a surprise later, it suggests that crucial information may have been withheld or poorly communicated.
3. Were other finance options offered?
If you were only shown one finance product without the chance to compare alternative deals, that may have limited your ability to make an informed decision.
4. Were mileage and wear-and-tear terms made clear?
PCP deals often include mileage limits and penalties for excessive wear or damage. If these details were skipped over, or only mentioned after you signed, that could indicate poor selling practices.
5. Did you feel rushed or pressured to sign?
High-pressure sales tactics are another indicator of mis-selling. If you were made to feel you had to decide on the spot or were discouraged from reading the full agreement, that’s a problem.
What Counts as a Mis-Sold Agreement?
Mis-selling doesn’t mean your deal was unaffordable or that you regret it. It means you were not given the full, clear picture needed to make a properly informed choice. Examples include:
- Commission not disclosed
- Final payment unclear
- Restrictions hidden or poorly explained
- Inadequate explanation of your options
- Lack of time to read and understand the terms
If any of these occurred, and your agreement was signed between 2007 and 2021, you may have grounds to explore a claim.
Spotlight on Black Horse Claims
One finance provider that has drawn particular attention in the current wave of consumer action is Black Horse. Although many customers were happy with their agreements, a significant number of individuals have raised concerns about how their contracts were sold. Common issues include lack of transparency over commission and misleading explanations about interest rates or end-of-term costs.
Black Horse finance claims are just one part of a much broader pattern, but they highlight how even well-known names are not immune to scrutiny. If your agreement was with this provider, reviewing your documents carefully is strongly advised.
How to Check Your Agreement
If you’re unsure whether your car finance deal was mis-sold, here’s a simple checklist to get started:
Step 1: Locate your documents
Find your original finance agreement and any emails or paperwork from the dealership. This will help clarify the terms you agreed to.
Step 2: Review the payment structure
Check how the balloon payment was explained and whether it matched what you expected when signing.
Step 3: Look for mention of commission
See if the documents include a disclosure about any commission paid to the dealer or broker.
Step 4: Think back to the sales process
Were you rushed? Did you feel fully informed? Were you given time to read everything?
Step 5: Use a free eligibility checker
There are tools available online that can help assess whether your PCP agreement may have been mis-sold based on your answers to a few questions.
Why This Matters Now
Increased awareness in 2025 has empowered consumers to look back at old contracts with a more critical eye. The issue is not about assigning blame. It is about restoring fairness, protecting consumer rights and learning from past practices.
Many drivers now making car finance claims are doing so not because they dislike their car, but because they believe the terms were unclear, incomplete or influenced by sales incentives they were never told about.
What You Can Do If You Suspect Mis-Selling
If you believe your PCP deal may have been mis-sold, here are the next steps to take:
- Make a formal complaint to the lender
Start by writing to the finance provider, explaining your concerns in clear, factual terms. - Contact the Financial Ombudsman
If the lender does not resolve the issue to your satisfaction, you can escalate your complaint to the Ombudsman. - Keep all records
Document every step, from original agreements to email conversations and complaint letters. - Seek independent advice
There are professionals and tools available to help guide you through the process without pressure.
Final Thoughts
Your car finance agreement should have been built on transparency and fairness. If that did not happen, you are not alone — and you may have more options than you think. Many people are only now learning that their contracts from years ago could be challenged.
If your PCP agreement was signed between 2007 and 2021 and you were not fully informed about key details, it is worth investigating further. Whether it is about Black Horse claims or any other provider, understanding your rights is the first step toward fair treatment.
The road to fairness starts with a question: was I told everything I needed to know? If the answer is no, it might be time to take action.
