PSA Finance UK Car Finance Claim: Was Your PCP or Hire Purchase Mis-Sold?

Who Is PSA Finance UK?

PSA Finance UK is the dedicated vehicle finance division serving the UK franchised dealer networks of Peugeot, Citroën, DS, Vauxhall, and Opel — all brands now operating under the Stellantis umbrella following the merger of PSA Group and Fiat Chrysler Automobiles in 2021.

As a captive lender, PSA Finance UK operated exclusively through franchised dealerships rather than offering finance directly to consumers. This meant that millions of UK drivers who bought a Peugeot, Citroën, or Vauxhall on finance during the DCA period were dealing with PSA Finance UK without necessarily knowing it — the finance was arranged by the dealer on their behalf.

Like other major captive lenders, PSA Finance UK was deeply embedded in the discretionary commission arrangement system that the FCA has since identified as a widespread source of consumer harm across the UK motor finance industry.

How PSA Finance UK Agreements Worked

When you visited a franchised Peugeot, Citroën, DS, Vauxhall, or Opel dealership that offered PSA Finance, the process typically worked like this:

• You chose a car and the dealer offered to arrange finance on your behalf.
• The dealer applied to PSA Finance UK for a loan on your behalf.
• PSA Finance set a base interest rate — but crucially, gave the dealer the power to adjust this rate upward.
• The higher the interest rate the dealer set, the more commission PSA Finance paid to the dealer.
• You were typically not told that the dealer was receiving commission, or that it was linked to your interest rate.

This arrangement — known as a discretionary commission arrangement (DCA) — was banned by the FCA in January 2021 precisely because it created a direct financial incentive for dealers to overcharge customers.

Why Some PSA Finance UK Agreements May Have Been Mis-Sold

Under FCA Consumer Credit rules and common law principles around fair dealing, lenders and brokers have a duty to act in customers' best interests. The key failures identified by the FCA include:

• Commission not disclosed: Most customers were never told the dealer received commission from PSA Finance UK.
• Inflated interest rates: Dealers had every incentive to set the highest rate you would accept rather than the lowest available.
• Conflict of interest: The dealer was acting as your credit broker while simultaneously being paid more by the lender the more they charged you.
• Lack of meaningful choice: Customers who didn't know about the commission structure couldn't meaningfully negotiate their rate.

Signs Your PSA Finance UK Agreement May Qualify

• Your car was bought through a franchised Peugeot, Citroën, DS, Vauxhall, or Opel dealership
• Finance was arranged at the point of sale, not independently sourced
• Your agreement was signed between January 2007 and January 2021
• The agreement was PCP, hire purchase, or a conditional sale agreement
• You were not explicitly told about the commission arrangement or given the option to shop around

How to Check Your PSA Finance UK Agreement

To confirm the details of your finance agreement, you have several options:

• Contact PSA Finance UK directly: You can request a copy of your original credit agreement. They are legally required to provide this under the Consumer Credit Act 1974.
• Check your credit file: Services like Experian, Equifax, or TransUnion will show historical credit agreements, including lender names and amounts.
• Review old paperwork: Look for the finance agreement document you signed at the dealership. The lender name, APR, and agreement number will be listed.

The Claim Process

1. Submit your details using the form below.
2. Case review: An FCA-authorised claims specialist will assess your agreement and determine whether you have a valid claim.
3. Claim submitted: If eligible, the specialist will handle all correspondence with PSA Finance UK and the Financial Ombudsman if required.
4. Compensation paid: If your claim succeeds, you receive your payout directly. Most claims management companies operate on a no-win, no-fee basis.