# PCP Claims Company vs Claiming Directly: Which Is Better for You?

You have a choice when making a PCP mis-selling claim:

**Option A: Claim Directly**
- Keep 100% of compensation awarded
- Takes more of your time and effort
- Higher chance of mistakes without guidance

**Option B: Use a Claims Company**
- They handle everything
- They take 15-25% of your compensation as a fee
- Higher success rate due to their experience

There's no legal requirement to use a claims company. Many people successfully claim on their own. But claims companies exist for a reason—they make the process simpler and faster.

## How Claims Companies Work

A claims company (like **[MotorRedress](https://motorredress.co.uk)** or others) essentially works as your agent. Here's the process:

1. **You contact them** with basic info about your PCP
2. **They assess eligibility** - Is your claim viable?
3. **They collect your documents** - You provide originals, they make copies
4. **They prepare the claim** - Write the formal complaint letter
5. **They submit to the lender** - On your behalf or with your signature
6. **They negotiate** - Back and forth with the lender on your behalf
7. **They deduct their fee** - Usually 15-25% of total compensation
8. **They pay you** - The remaining 75-85% goes to you

Most claims companies operate on a **"no win, no fee" basis**:
- If your claim is rejected, you pay nothing
- If successful, they take a percentage (typically 15-25%)
- Average compensation is £700, so you'd net £525-600 after fees

## Real-World Financial Comparison

Let's say your claim is worth £800.

**If You Claim Directly**:
- Compensation awarded: £800
- Your fee: £0
- **You receive: £800**
- Your time investment: ~15 hours

**If You Use a Claims Company (20% fee)**:
- Compensation awarded: £800
- Company fee (20%): £160
- **You receive: £640**
- Your time investment: ~2 hours

**If You Claim Directly But Make a Mistake**:
- Your claim is rejected because you missed key evidence
- You receive: £0
- Opportunity lost forever

## What Mistakes People Make When Claiming Directly

1. **Not referencing FCA findings** - Just saying "I was mis-sold" isn't enough.

2. **Incomplete documentation** - Missing the original credit agreement means the lender can reject you.

3. **Vague complaints** - Just saying "I didn't know about commission" is weaker than detailing exactly what wasn't disclosed.

4. **Wrong lender contact** - Sending to the dealer instead of the finance company.

5. **Missing the deadline** - Forgetting about the 8-week response window, then the 6-month Ombudsman escalation window.

6. **Accepting a low offer** - Not understanding that you can negotiate or escalate a partial rejection.

## The Reality: Success Rates Differ

**Claiming Directly Success Rate**: ~60-70% of claims that reach the lender succeed

*Why?* Some people file incomplete claims. Some don't escalate to the Ombudsman when rejected.

**Claims Company Success Rate**: ~85-90% of claims succeed

*Why?* Professional firms don't make basic mistakes. They escalate properly. They know how to strengthen weak cases.

## When DIY Claiming Makes Sense

- You have a **simple, clear-cut case**
- You have **all original documents** readily available
- You're **comfortable with formal letter writing and paperwork**
- You have **time to spend** (10-20 hours over 6+ months)

## When a Claims Company Makes Sense

- Your **documents are incomplete**
- You're **unfamiliar with FCA rules** and complaints procedures
- You **lack the time** to manage this yourself
- You have a **complex case** (multiple vehicles, refinancing, etc.)
- You want **professional negotiation** with the lender

## Speed Comparison

- **DIY direct submission**: 2-4 months if lender cooperates
- **Claims company submission**: 2-4 months if lender cooperates
- **DIY + Ombudsman escalation**: 6-12 months
- **Claims company + Ombudsman escalation**: 6-12 months (but they handle the escalation)

Speed is roughly the same. The difference is stress and effort.

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**Summary**: You can claim directly and keep 100%, but claims companies handle the work for 15-25% of compensation. Direct claims work best for organized, detail-oriented people with time. Claims companies suit those who prefer to outsource the complexity. Success rates are similar; the main difference is effort vs. money.