You could be entitled to compensation from your motor finance lender*
Sign up to find out if you may be eligible to make a car finance claim for compensation
Important Update: FCA Motor Finance Redress Scheme
The FCA has introduced a Motor Finance Redress Scheme, meaning millions of drivers could be owed compensation.
Average payouts are around £829 per agreement (where claims are upheld), and many consumers may have had multiple agreements since 2007.
The FCA is encouraging claims as soon as possible. Complaint handling resumes on 31 May 2026, and the scheme closes on 31 August 2027. For full details, please see the FCA announcement..
WHY YOU MIGHT BE OWED MONEY
Many car finance agreements may have included commissions that were not always clearly explained to customers at the time of sale.
If your lender or car dealer did not fully explain how your loan was arranged, or may have earned a commission linked to the agreement, you may be able to make a car finance claim, as your agreement could, in some cases, have been mis-sold.
This may apply to common types of car finance agreements, including:
– PCP (Personal Contract Purchase)
– HP (Hire Purchase)
You may be eligible to make a car finance claim for compensation, depending on your individual circumstances, if:
– You were not informed about a commission or interest markup
– The loan terms were not clearly explained to you
– You were given advice that may not have been suitable, or felt pressured into taking the agreement
FAQs
A car finance claim is a way of reclaiming money you may be owed if your PCP or HP agreement was mis-sold, often through hidden commissions or unfair interest rates.
Eligibility depends on a range of factors. In some cases, issues may include if you weren’t told about commission payments, interest rates weren’t fully explained, or you felt pressured, you may have been mis-sold.
The amount you could receive will depend on your individual circumstances, including the details of your finance agreement(s) and any commission involved. Notwithstanding this, the FCA has indicated that the average redress amount could be £700 per eligible agreement.
The FCA has paused the requirement for motor finance firms to respond to complaints until 31 May 2026. The FCA has indicated that they expect a redress scheme to be implemented, and redress paid, during 2026.
If your claim is successful, you may be entitled to a financial refund. The compensation you receive will depend on the specifics of your agreement and how much the mis-selling affected you.
CarFinanceClaim.co.uk does not charge you for using our service and acts solely as an introducer.
If you choose to proceed with a claim, you will enter into a separate agreement with Consultation Claims Ltd, a Claims Management Company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activities (FRN 836626), who will handle your claim.
There are no upfront costs to you. A fee will only be payable if your claim is successful. Fees are charged in bands depending on the amount of redress or refund received. All fees quoted are exclusive of VAT, which will be added at the prevailing rate.
Band | Redress or Refund Received | Percentage Fee | Maximum Fee |
A | £1 – £1,499 | 30% | £420 |
B | £1,500 – £9,999 | 28% | £2,500 |
C | £10,000 – £24,999 | 25% | £5,000 |
D | £25,000 – £49,999 | 20% | £7,500 |
E | £50,000+ | 15% | £10,000 |
These fees are in line with FCA guidelines on compensation refunds up to £49,999.
Cancelling
As CarFinanceClaim.co.uk acts solely as an introducer, we do not enter into a claims management contract with you and therefore no fee is payable to us.
If you choose to proceed with Consultation Claims Ltd, you will enter into a separate agreement with them. You will have a 14-day cooling-off period in accordance with consumer law, as set out in their Terms of Business.
If you cancel after the 14-day cooling-off period has expired, any applicable fees or charges will be governed by Consultation Claims Ltd’s Terms of Business.
You do not need to use a claim management company to make your complaint. You can do this directly. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
If you have already instructed a claims management company to act on your behalf you will need to terminate your instructions before entering into your contract with us (dependent on who you have instructed termination fees may apply, you will need to check with the instructed firm).
What Is a Car Finance Claim?
A Car Finance Claim allows you to recover money from a mis-sold car finance agreement.
Over 90% of new car buyers in the UK use finance. In some cases, customers may have been misled by dealerships or brokers where commissions or interest rates were not clearly disclosed.
If this happened to you, you may be able to reclaim:
Hidden commission payments
Unfair interest
Part of your monthly repayments
Which Lenders Can i Claims Against?
Below are some of the most common lenders.
- Alphera Financial Services
- Audi Finance
- Barclays Bank SAU
- Barclays Partner Finance
- Bentley Finance
- Blackhorse Ltd
- BMW Financial Services
- CA Auto Finance UK Ltd
- Close Brothers Finance
- Clydesdale
- FCA Automotive Services UK Ltd
- FCE Bank PLC
- Ford Credit
- Hitachi Capital Consumer Finance
- Honda Finance Europe PLC
- Hyundai Capital UK Ltd
- Kia Finance
- Lamborghini Finance
- Mercedes-Benz Financial Services
- Motonovo Finance
- Novuna Personal Finance
- Porsche Finance
- PSA Finance
- RCI Financial Services
- Santander Consumer Finance (PLC)
- SEAT Finance
- Skoda Finance
- Stellantis Financial Services UK Limited
- Toyota Financial Services
- Vauxhall/GMAC
- Volkswagen
What Happens Next – Your Claim Journey
Been Mis-Sold Car Finance? Claim What You're Owed Today!
Step 1: Sign Up & Eligibility Review
Step 2: Claim Submission
Step 3: Negotiation & Follow-Up
Step 4: Potential Compensation
FCA Motor Finance Redress Scheme: What It Means for Consumers
Updated Important FCA Update on Motor Finance Commission Claims — Pause Ending 31 May 2026
