PCP Finance Claim

[Boothmeister]

Hi there.
I recently submitted a claim for missold PCP Finance on a no win no fee basis. The maximum they told be they could take from my award being 30%. However I have now recieved a further document which I believe they referred to as 'ATE'. In that document it states the solicitor can claim 100% plus vat and that I would be liable for the costs if the finance company went to court? It seems dodgy to me.

[Boothmeister]

Anyone? I can't seem to post the agreement as it says I'm not allowed?

[R0b]

I'm not particularly up to date with no win no fee claims but I thought the cap for solicitors deducting compensation was capped at 25%, not 30%. You may want to query that.

ATE is usually taken you to cover you in the event you lose your claim and costs are awarded against you then you won't need to pay anything so it would be strange why the document says solicitors can claim up to 100% plus VAT. Sometimes courts do not award the full amount of the solicitors fees awarded if they don't feel they are proportionate so it could be the solicitor looking to recover those missing sums from yourself.

The easiest thing to do is to talk to the solicitor and ask them to explain what all of this means, then get them to confirm that in writing to you. If you don't like what they're saying or they don't confirm it in writing after the call then that should ring alarm bells and you should consider looking elsewhere. If you decide to go ahead without covering your own back then really I don't think you have anyone to blame but yourself.

Solicitors work on your behalf so it is only right you get the information you need from them to make an informed decision but you need to ensure you have documented evidence because I see this happen alot. Solicitors say XYZ over the phone, client signs up then a dispute arises and client has no evidence to back up what was discussed, loses out and then complains it is unfair.

[anonymous10]

In the current PCP Claim industry, the success fees tend to be in the region of 25%-45% with VAT being charged on top. This fee is the maximum your solicitors can deduct from the damages awarded to cover their own costs.

The ATE (after the event) insurance will be purchased on your behalf and in the event of an unsuccessful claim - this will cover the legal fees. If you do receive a successful pay-out, the cost of this policy is also deducted from your total claim in addition to the success fee. The estimated cost of this policy is approximately £400 - £1,200 + IPT (12%). This charge will be waived if your claim is unsuccessful.

You have the right to refuse the ATE Insurance, however, this would mean you may have to pay substantial legal fees if your claim resulted in a loss.


Although Solicitors have to act in your best interests, most firms dealing with PCP / HP Claims are using marketing companies to gain rapid growth. It's probable that your advisor is working within one of these marketing companies and is likely not a qualified solicitor. The main issue with this set up is that your advisor will earn a commission when they submit your claim and may have 'the sale' as their best interest. Due to this common arrangement, key information such as the ATE Insurance cost is often only disclosed at a much later date in the claim. For this reason, you should follow Rob's advice and absolutely get everything in writing to cover yourself.

It's important to note that the No Win No Fee contract signed for these claims may result in you having to pay for court fees regardless of a win or lose. For a more in-depth analysis of these claims and this industry, there's useful information located on www.mypcps.com.