HSBC (Card Services) PCP Car Finance Claim

Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.

Think you were mis-sold PCP car finance with HSBC (Card Services)? You could claim compensation for hidden commissions, unfair terms, or undisclosed fees – check eligibility and start claim today.

In this guide

• About HSBC (Card Services)
• How HSBC (Card Services) may have engaged in irresponsible lending with car finance agreements
• Do you have a claim against HSBC (Card Services) for a car finance agreement?
• Our Partner's Fees Explained
• Think You May Have a Motor Finance Claim?

The UK is a nation of car lovers, with more than 41 million cars and vans registered on UK roads. For many people, owning a car is essential for daily living and commuting, but it can be pricey. Financing a car has become one of the most popular ways to obtain a new car, as you don’t have to pay for it outright. Countless car finance providers exist in the UK, including established banks like HSBC that can provide credit via card services. However, when lenders don’t provide car finance responsibly, customers can end up trapped in debt.

If you’ve struggled to keep up with your car finance repayments through HSBC and suspect you were given credit you couldn’t realistically afford, you could be entitled to claim back interest and charges. This guide explains how HSBC (Card Services) may have failed to act responsibly, what claim criteria apply, and how Claims Bible can help you take action.

About HSBC (Card Services)

HSBC is one of the world’s largest banking and financial services providers, with millions of customers across the UK. Through its Card Services division, HSBC has historically provided a variety of consumer credit products, including car finance agreements.

HSBC’s car finance products have often been promoted as convenient ways for customers to spread the cost of purchasing a new or used vehicle. These agreements typically include options like hire purchase (HP) or personal contract purchase (PCP), each with different payment structures and end-of-term options. While these products can be helpful, problems arise when they’re approved for customers who can’t really afford the monthly repayments, or when key costs and fees aren’t clearly explained.

How HSBC (Card Services) may have engaged in irresponsible lending with car finance agreements

In the UK, all car finance providers must follow the rules set out by the Financial Conduct Authority (FCA), which include the standards in the Consumer Credit Sourcebook (CONC). These rules require lenders to check that customers can afford any credit product they offer, and that includes car finance agreements.

Despite these requirements, there have been complaints from customers who say that HSBC did not carry out sufficient affordability assessments when approving car finance. Some borrowers claim they were encouraged to take on more expensive vehicles, higher monthly repayments, or longer loan terms than they could realistically manage. This was sometimes based only on a superficial credit check, rather than a full review of income and expenses.

A look at decisions from the Financial Ombudsman Service (FOS) shows that many complaints about irresponsible car finance have been upheld where lenders, including examples against HSBC directly. These complaints can stem from many different issues, including:

• Approving agreements without thoroughly checking income and outgoings.
• Issuing car finance that clearly went beyond what the borrower could afford.
• Failing to step in when the borrower showed signs of struggling with repayments.
• Not explaining the true cost of the car loan, including interest and balloon payments, in a clear and transparent way.
• Providing incentives to upgrade to a more expensive vehicle, despite affordability concerns.

If HSBC acted in any of these ways when you took out your car finance, it could be a breach of FCA rules, and you may be entitled to recover any interest and charges that you shouldn’t have been made to pay.

Do you have a claim against HSBC (Card Services) for a car finance agreement?

Car finance can easily become unaffordable if the bank or lender fails to check that repayments are within your means. You could have a claim if any of the following apply to your agreement with HSBC:

• You weren’t asked for detailed information about your income, bills, or other debts before being approved.
• Your monthly repayments stretched your budget, leaving you struggling to cover essential living costs.
• You were encouraged to take out a bigger loan than you needed or could afford, to buy a more expensive car.
• HSBC failed to help when you fell behind, instead adding interest or penalties that made the debt worse.
• You weren’t given clear information about interest rates, fees, or final balloon payments.
• You have experienced stress, worry, or financial hardship because of your car finance agreement.

If any of these sound familiar, you might be eligible to claim back interest and charges from the agreement with an irresponsible lending claim against HSBC. At Claims Bible, we can help you check your eligibility and connect you with experts to fight your case.

How to start your claim for compensation against HSBC (Card Services) for a car finance agreement

If HSBC approved a car finance deal that you couldn’t afford, or if you’ve ended up in financial difficulty because they failed to step in, you have every right to take action.

Car finance claims are temporarily paused while we appoint a new claim partner. You can still complain to HSBC yourself for free — our complaint letter generator writes a ready-to-send letter in under a minute — and this page will be updated when claims reopen.

Don’t let an unaffordable car finance agreement hold you back. If HSBC failed to lend responsibly, Claims Bible is here to help you claim back what you deserve.

Think You May Have a Motor Finance Claim?

The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.