What is a Mis-Sold Car Finance Claim?
A mis-sold car finance claim is made when a car finance deal wasn’t explained clearly or fairly.
This can happen with Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements – the two main ways people finance a car.
In many cases, dealerships or brokers were paid a commission by the finance company for arranging the deal. That isn’t automatically wrong, but you should have been told about it and how it affected your interest rate.
If the commission or other key details were hidden or unclear, you might have paid more than necessary for your finance.
Please Note: The Financial Conduct Authority (FCA) is currently consulting on a proposed industry-wide redress scheme for motor finance commission arrangements covering agreements taken out between 6 April 2007 and 1 November 2024. This may affect the timing and outcome of your claim.
Who is Eligible to Claim?
- You took out PCP or HP car finance between 6 Apr 2007 and 1 Nov 2024
- The finance was unaffordable, or you felt pressured into it
- You didn’t fully understand the repayment terms or balloon payment
- You were not told that the dealer or broker got a commission, or how that commission might affect the deal you were offered.
Learn more about Our Fees and How Our Fees Work.
Why Were Car Finance Agreements Mis-Sold?
For many years, car finance deals were often arranged in ways that weren’t fully transparent.
While commission payments between lenders and car dealerships were common, many customers weren’t told how those payments affected what they were charged.
Hidden Commissions
You should always be told if someone is earning money from your finance deal.
Inflated Interest Rates
Your interest rate should reflect your circumstances, not a broker’s commission.
Poor or Unclear Advice
You should have been given clear information before signing any agreement.
How Do I Know if I Was Mis-Sold?
It isn’t always obvious whether your car finance agreement was mis-sold.
However, there are a few clear warning signs that could mean you weren’t given the right information or advice at the time. You might have been mis-sold if:
You weren't told about commission
In many finance agreements, the car dealer or broker received a payment (commission) from the lender for arranging the finance.
You should have been told about this and how it affected your interest rate or the overall cost.
If the commission was not disclosed, the agreement may not have been sold in a transparent way.
Your interest rate seemed high
Some brokers were allowed to adjust the interest rate offered to customers.
In some cases, this rate was increased to generate a higher commission for the dealer or broker.
If you were not told how your interest rate was set, you may not have been given the information needed to make an informed decision.
The costs weren't clear
Finance agreements can include features such as balloon payments, mileage limits, or conditions on ownership.
If these were not explained clearly, or if key terms were missing or confusing, you may not have fully understood the financial commitment you were entering into.
The finance was unaffordable
Before arranging finance, the dealership or lender should check that the repayments are affordable for you.
If this wasn’t done, or your income and expenses were not properly considered, the finance may have been unsuitable for your circumstances.
You felt pressured to sign
Some customers were encouraged to sign finance agreements on the spot, without being given enough time to review the details.
If you felt rushed, or weren’t offered the chance to compare options, the agreement may not have been sold fairly.
The Claim Process Timeline
We handle every stage of your car finance claim carefully and transparently, keeping you updated from start to finish.
Important Notice
As of late 2025, The Financial Conduct Authority (FCA) is reviewing all motor finance commission complaints. During this period, some cases may be paused or delayed until the FCA introduces its final redress scheme in 2026.
We’ll keep you fully updated and make sure your case is ready to progress as soon as the review concludes.
Sign-Up & Basic Details
When you start your claim, we’ll ask for just a few details.
This gives us the information we need to open your file and begin the process.
After signing up, you’ll have 14 days to change your mind. If you decide not to go ahead during this period, you can cancel without charge or obligation. Please see our 🔗Cancellation Policy for more information.
Soft Credit Check & Initial Review
With your consent, we carry out a credit check through our partner, Valid8.
This check is soft-search only, meaning it won’t affect your credit score, this helps us locate any car finance agreements on your credit history so we can review them quickly for possible signs of mis-selling or unfair terms.
ID Check & Information Gathering
To meet legal and regulatory requirements, we’ll confirm your identity and collect any additional details about how your finance agreement was arranged.
This ensures everything is handled securely and accurately from the start.
Formal Complaint to the Lender
Once we’ve reviewed your information, we prepare and send a Letter of Complaint to your lender.
This sets out the issues we’ve identified and requests that they investigate and respond.
Lender Review & Response
Your lender will review the complaint and issue a formal response.
If they need extra time, they may send a holding letter while their review continues.
We keep in touch throughout and update you on any progress.
Outcome & Next Steps
When the lender’s decision arrives, we’ll discuss it with you.
Depending on the result, your case may:
Be resolved directly with compensation agreed;
Be referred to the Financial Ombudsman Service for further review; or
Be escalated to court if that’s the most appropriate route.
We’ll explain each option clearly so you can decide how to proceed.
Frequently Asked Questions
No. You are not required to use a law firm or claims company to make a complaint or claim for compensation.
You can raise a complaint directly with your lender yourself, and if you are unhappy with their response, you can escalate the matter for free to the Financial Ombudsman Service (FOS).
We are here to provide expert support, handle the process on your behalf, and improve your chances of navigating complex issues successfully, but the choice is entirely yours.
No.
The checks carried out to review your claim are classed as soft searches, meaning your credit score is not affected.
The PCP Redress Scheme is a UK-wide compensation scheme designed to compensate consumers who were potentially mis-sold a Personal Contract Purchase (PCP) car finance agreement. The Financial Conduct Authority (FCA) introduced the scheme following concerns that some lenders and dealerships may have used discretionary commission arrangements, which allowed them to increase interest rates for their own financial gain.
The FCA is currently consulting on a redress scheme for customers affected by undisclosed commission arrangements. Until the scheme launches (expected 2026), some complaints may be paused or reviewed later. We’ll keep clients informed of any updates.
You usually have six years from when you took out the finance, or three years from when you first became aware there might be an issue. The FCA’s upcoming redress scheme will introduce its own specific deadlines, and the Financial Ombudsman Service (FOS) has suggested a long-stop date of 29 July 2026 for some motor-finance commission complaints. To keep your case eligible under FCA and FOS timelines, it’s best to act promptly
To help us process your claim quickly, please gather relevant documents, such as your original car finance agreement, any correspondence with your finance provider, proof of payments made, and any documentation related to your complaint. The more information you can provide, the easier it will be for us to assess your case.
We will also require a form of identification, not only to comply with Anti-Money Laundering (AML) regulations but also to verify your identity with the lender if you’re making a PCP claim. Identification ensures that your claim can be processed smoothly and prevents any delays. Acceptable forms of ID include a valid passport, driving licence, or other government-issued identification.
If you have any concerns about providing documentation or identification, our team is here to assist you every step of the way.
- If your claim is settled and your damages or compensation is accepted, the defendant will pay the total sum into our ‘client account’.
- When we receive the money from the defendant, our fees will be deducted. Our fees depend on each claim and will be detailed in the agreement document you signed at the beginning of the process.
- Once the fees have been deducted, we will promptly send the final amount to your bank account.
- We then kindly ask you to leave us an honest Trustpilot or Google review of the work we did on your claim and your experience throughout! This helps show that we are a reliable and trusted service.
Each claim is different and depends on how much information we have, or how responsive the defendant is. We’ll always keep you updated at key stages.
If your claim doesn’t win, our fees will be covered by insurance, and your case will be closed with no hidden costs to you. If your claim is successful, the lender will pay your compensation into our client account, our percentage of fees (plus VAT) will be deducted, and the remaining compensation will be paid promptly to you.
Please note: You have a 14-day cooling-off period during which you may cancel without any charge. If you choose to cancel after this period, you may be required to pay for any work that has already been carried out, as explained in our Terms and Conditions. We will always provide clear information about any costs before they are incurred.
As long as you continue to instruct us, cooperate with us, and allow us to progress your claim, you will not be required to pay our fees yourself. If your claim is unsuccessful, you will not owe us anything.
We are committed to complete transparency and ensuring there are no unexpected costs for our clients. If you have any questions about fees or cancellations, feel free to contact us.
For PCP (Personal Contract Purchase) claims, our Success Fee is capped in line with the SRA Claims Management Fee Rules. The following table sets out our maximum possible deductions:
| Band | Compensation Amount (£) | Maximum Fee (%) | Maximum Fee (£) |
|---|---|---|---|
| 1 | 1 – 1,499 | 30% | 420 |
| 2 | 1,500 – 9,999 | 28% | 2,500 |
| 3 | 10,000 – 24,999 | 25% | 5,000 |
| 4 | 25,000 – 49,999 | 20% | 7,500 |
| 5 | 50,000 or above | 15% | 10,000 |
Example calculations (including VAT at 20%):
- £1,000 compensation → 30% fee = £300 + VAT (£60) = £360 total
- £5,000 compensation → 28% fee = £1,400 + VAT (£280) = £1,680 total
- £50,000 compensation → 15% fee = £7,500 + VAT (£1,500) = £9,000 total
To read more about our fess, please visit Our Fees Page.
Once you’ve signed up, we’ll confirm your details and begin preparing your claim. You’ll receive a confirmation email and regular updates as we progress.
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