First Response Finance PCP Claims

If you took out a PCP or car finance agreement with First Response Finance between 2007 and 2021, you could be eligible for compensation if the deal was mis-sold. Many people were not properly informed about important details such as balloon payments, mileage limits, and interest rates.

In some cases, First Response Finance dealers earned hidden commissions from lenders without disclosing them, which could have led to higher borrowing costs. If your agreement was unsuitable for you or affordability checks were not fully carried out correctly, you may have a strong claim for compensation.

Payouts for mis-sold Bank of Scotland finance agreements are averaging over £1,100, with some drivers recovering £5,000 or more. You can start a claim with a specialist or escalate it to the Financial Ombudsman Service if it's needed.

You may be eligible to claim a refund from First Response Finance if your PCP or HP car finance agreement involved a discretionary commission arrangement. Many customers who bought vehicles before January 2021 were not given full details about interest rates, commissions, or dealer-lender relationships, which could make the agreement mis-sold.

You bought a car on PCP finance with Bank of Scotland before January 2021.
You paid a higher-than-average interest rate without a clear explanation.
First Response Finance or the car dealership you used failed to carry out proper affordability checks.
The relationship between First Response Finance and the car dealer was not disclosed to you.
You were not told about sales commissions influencing your finance terms.

If First Response Finance or the car dealership you used failed to be fully transparent about commissions or financial relationships, you may have entered into the agreement without complete information. This lack of disclosure can be grounds for a refund claim.

First Response Finance PCP Claims - Key Facts Slider

First Response Finance as a Subprime Vehicle Specialist

First Response Finance is a Nottingham-based vehicle finance provider founded in 1998. Over the last two decades it has specialised in sub-prime car loans, earning a reputation as one of the industry’s leading non-prime lenders. The company operates across the UK with major offices in Nottingham, Leigh and Glasgow. It has won multiple awards, including being a five-time winner of the Dealer Magazine “Sub-Prime Finance Provider of the Year.”

First Response’s Focus on Hire Purchase

Unlike many car finance lenders, First Response Finance has a business model centred on hire purchase (HP) rather than PCP deals. It offers straightforward HP loans for cars, motorbikes and vans, typically ranging from around £2,000 up to £15,000 over 18 to 60 months. At the end of these fixed monthly instalments, the customer owns the vehicle outright.

Supporting Non-Prime Borrowers

First Response Finance is known for helping customers who might be turned away by mainstream lenders. With over 20 years of experience, the company uses flexible criteria to approve applicants with limited or adverse credit history. It plays a vital role in expanding access to vehicle finance in underserved areas.

First Response and Commission Practices

Although the wider industry is under investigation for hidden commission practices, First Response Finance maintains that it did not use discretionary commission arrangements (DCAs). These were banned in 2021 by the FCA. First Response customers were not subject to interest rate mark-ups by brokers, reducing the risk of unfair overcharging.

Can You Claim a Refund from First Response?

Following a major 2024 court ruling, even standard undisclosed commissions can be grounds for compensation. If you were not told about any broker or dealer commission when arranging a First Response HP agreement, you may still be eligible for a refund of the interest paid on that basis.

What Happens if Redress Becomes Industry-Wide?

The FCA has indicated it may launch an industry-wide redress scheme in 2025 if the Supreme Court upholds the current ruling. If this happens, First Response Finance may be required to review old cases and proactively offer compensation to affected customers, even if they haven’t complained yet.

PCP Car Finance Claims - Refund Reasons Section

Are You Due a PCP Refund?

Common reasons why millions of drivers may be eligible for compensation:

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Interest Rates Inflated

Dealers set higher rates to boost commission, costing you more over the term of your PCP agreement.

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Hidden Commissions

Brokers often failed to disclose commission payments, breaching transparency rules on finance deals.

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Limited Finance Options

Many drivers were only offered PCP plans that benefited the dealership rather than providing fair alternatives.

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No Clear Explanation

Important information about car finance products was often not properly explained before signing agreements.

First Response Finance FAQs - Hire Purchase Agreements

Frequently Asked Questions

What is a First Response Finance hire purchase agreement?

A hire purchase (HP) agreement from First Response Finance allows customers to make fixed monthly payments over a set period. Once the final payment is made, the vehicle becomes yours. It's a straightforward way to finance a used car, motorbike or van without balloon payments.

Can I claim compensation if my First Response agreement included hidden commission?

Yes, you may be eligible for compensation if your finance agreement involved undisclosed commission payments to a broker or dealer. Although First Response did not use discretionary commission models, standard commission payments without disclosure could still result in a refund.

How do I find out if commission was part of my First Response loan?

You can submit a finance disclosure request directly to First Response Finance. Reviewing your original paperwork or asking the dealer who arranged your loan may also reveal whether commission was included.

Does First Response Finance offer PCP agreements?

No, First Response specialises in hire purchase agreements. These differ from PCP because they do not include a balloon payment at the end. Ownership passes to the customer automatically once the final payment is made.

How long does a mis-selling claim with First Response take?

Most complaints are responded to within eight weeks. If you're unhappy with the outcome or don't receive a reply in time, you can escalate your case to the Financial Ombudsman Service, which could take several months depending on complexity.

Can I make a claim without using a solicitor or claims company?

Absolutely. You can raise a complaint directly with First Response Finance. If the issue is not resolved, you can contact the Financial Ombudsman Service for free assistance—no legal fees required.

First Response Finance PCP and HP Claims

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First Response Finance PCP Claim Key Facts