Car Finance Compensation Calculator
You could be owed compensation if your car finance was involved in Discretionary Commission Arrangements (DCAs). The FCA scheme has an expected average payout of around £829. If you use a CMC for your claim, they may look to get you more than through the FCA scheme, as some experts claim the FCA scheme undervalues claims.
Our legal partners have achieved an average payout of £1,846.23 per car finance claim minus fees of 15-30% + vat. This figure is the average claim value per agreement of HD Law as of July 31st 2025. All clients will be litigated, hence the higher past average redress figure vs the FCA scheme expected figure of £829.
We are a claims management company and receive payments from our partnered firms for our services. You do not need to use a claims management company to make your complaint to your lender or the Financial Ombudsman for free.
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No Win, No Fee
You only pay a success fee if your claim is successful. Our claims partner's success fee is 15%–30% of the compensation you receive, plus VAT. If no offer is obtained, you will not be charged a success fee. You can read full details of our fees here. Cancellation fees may apply if you cancel or breach your agreement before the process is complete.
Advantage Finance Claims
A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of widespread mis sold car finance. As one car dealer openly admits in a recent article, “frankly, we were getting away with murder. We weren’t treating customers fairly and were, in effect, charging them to earn us money.” Some lenders have also been guilty of approving loans that were unaffordable, especially in the subprime market where Advantage Finance operates.
Advantage Finance's APR is typically 29.35%. As an example, if you take out a Hire Purchase Agreement repayable over 48 months. Vehicle Purchase Price: £7,500. Deposit: £0.00. Amount of Credit: £7,500. Acceptance Fee: £325.00. Interest Payable: £4,200.44. Option to Purchase Fee: £200.00. Total Charge For Credit: £4,725.44. 47 Monthly Repayments of £250.53 Followed By 1 Final Repayment of £450.53.
In their latest numbers, The Financial Ombudsman upheld 38% of complaints against Advantage Finance Ltd.
If you believe you have had a mis-sold or unaffordable loan from Advantage Finance then we can help you get compensation. Start your claim today!
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can do all the hard work so you don't need to!
Simple Process
Making a claim is simple. With just a few details you can start your application.
No Win, No Fee
You are only charged after the claim has been won and you have your refund!
Was My Advantage Finance Loan Mis-sold?
Your Advantage Finance loan was mis-sold if the loan was unaffordable or the lender did not perform proper affordable ability checks. Signs that your loan(s) may have been unaffordable include:
You frequently consolidated loans or borrowed shortly after repaying a loan
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Your loans from a single lender were regularly increasing in size
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You missed some repayments
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You made some repayments late
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The loan repayment was a substantial part of your disposable income
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You were using one form of debt to fund another.
Don’t worry if you can’t find the agreement or remember who the dealership was. You just need the name of the company you made the payments to. You should be able to find this information on your old bank statements.
If you think you have a claim, you need to act quickly as there are statutory deadlines, known as limitation periods, that apply to mis-selling claims. If your car finance product was taken out over six years ago, you can still claim if you only became aware of the potential claim within the last 3 years.
Be aware, there are statutory deadlines, known as limitation periods, that apply to mis-selling claims.
Maximise Your Compensation
After obtaining a credit report, Claims handlers review your previous borrowing and can help you claim from lenders.
Your complaint is handled by professionals
Your claim will be handled by an experienced team, who will complain to your lender on your behalf.
Reclaimed funds to be Transferred
After a claim is successful, the redress money is transferred straight to you.
FAQs
Why Use The Claims Guide
Maximise potential redress: Some experts argue that the FCA scheme’s average payout (~£829 per agreement) may undervalue some cases. We can assess whether taking your case outside the scheme could lead to a higher settlement. £1,846.23 (minus fees of up to 36%) is the average redress achieved by our partner law firm HD law. Many other law firms use the FCA scheme; our lawyers always seek to get more compensation for customers.
Expertise with complex claims: Our specialist partners understand the nuances of car finance compensation and handle the paperwork, evidence gathering and negotiations for you, reducing stress and guesswork.
Multiple agreements managed together: If you’ve had several hire‑purchase or PCP loans, ensure every eligible agreement is included, so you don’t miss out on compensation.
Stay informed: Experts will monitor FCA updates and court rulings, keeping your claim compliant and on track while you focus on other things.
Latest update on when car finance claims are being paid out
Based on the latest FCA update, Lenders are expected to begin processing claims after an implementation period ending 30 June 2026 (for newer agreements) or 31 August 2026 (for older ones), and will then have 3 months to tell customers if they are owed compensation. If you haven’t complained, lenders will only contact you if you’re likely to be eligible, and you’ll still have until 31 August 2027 to make a claim. Timings may change due to ongoing legal developments.
However, recent legal challenges to the Financial Conduct Authority scheme could delay compensation payments. Several groups, including lenders and a consumer organisation, are disputing how the scheme is designed, particularly the level of compensation.
How long do Car Finance claims normally take?
The rules state that a lender has 8 weeks to reply to a complaint; however, sometimes they go over this deadline. If the lender concedes they were at fault, they will pay out shortly after. If the complaint needs to go to the Financial Ombudsman because the car finance lender is disputing it, the case could take anywhere between 12 to 18 months to conclude. Some people are lucky and get a claim accepted and their refund paid after only a couple of months. Others take over a year.
Lenders currently have an extension for hidden commissions claims, granted by the FCA, so these may take longer than usual.
How much could I get refunded from a car finance claim?
£1,846.23 is the average redress achieved for each agreement by our partner law firm, HD Law, up to July 31st 2025. As the average claimant had two agreements, the average redress per claimant was over £3,600, but they were charged fees of up to 36%. All clients who sign up through our form will be litigated, hence the higher average past redress figure than expected with the FCA scheme.
How Much Is Expected From The FCA Scheme
The Financial Conduct Authority (FCA) highlighted in their report, "Our Work on Motor Finance – Final Findings" (March 2019), that a typical motor finance agreement of £10,000 under a Discretionary Commission Arrangement (DCA) led to consumers being overcharged by around £1,100 per agreement.
This figure was revised to £950 in August 2025, and then to £700 when they formally announced their proposed scheme in October 2025. In their update on 30th March 2026, the FCA increased their estimate again to £829. Some industry insiders believe this figure is too low, and CMCs will likely pursue a higher amount of redress for their customers.
What types of car finance claims can I make?
You can potentially make a car finance claim for Unaffordable lending practices, if the broker was on a Discretionary Commission Arrangement or for Hidden Commissions. More information can be found in our post explaining the different types of car finance claims.
How many people were affected by Discretionary Commission Arrangements?
The FCA previously told MPs that there were 14.6 million discretionary commission
arrangement agreements between 2007 and 2020. That is over half (around 56.4%) of all UK car finance agreements in that time period.
In terms of hidden commissions in general, this would add to the number of borrowers affected.
How do I know if I can claim?
Mis-selling often occurs when details of the agreement aren’t clearly explained or proper affordability checks aren’t conducted. In terms of car finance, it can also be because the broker was incentivised by DCAs. If any apply to you, you can file a complaint. Whether your agreement is ongoing or paid off, you can still claim. To find out if you can claim, click the blue button below.
Can I Claim For A Deceased Relative
Yes. If you are the primary beneficiary, then you can claim for a deceased relative. When filling in the form, you may have to put their details in to find the agreement, but put your own contact details in. When our partner law firm contacts you, just explain the situation.
Why Use The Claims Guide For My Claim?
Make It Easy - Claiming a refund can be a daunting task. Our partner claims that handlers make it easy and ensure everything you need is included, so you don't have to spend much time on it.
Professional - Each claim is different, and specific circumstances that are relevant to the claim should be explained by a professional. The Financial Ombudsman has previously been unable to progress some complaints that involved a “template” or “standard letter”.
How much will I receive if my Unaffordable Lending Claim is successful?
If you successfully claim a refund from a lender, you can claim back the interest and charges on your loans, plus 8% statutory interest. For more information on how this is calculated, click here.
How much will I receive if my Hidden Commissions Claim is successful?
If you successfully claim a refund for hidden commissions, you can generally claim back the commission paid to the broker, plus, typically, 8% statutory interest. In some more serious cases, you may receive more. These circumstances are explained here.
How much will I be charged?
All claims on this website are on a no-win no no-fee basis, meaning you won't pay a thing unless you win compensation. You will have the right to cancel the agreement within 14 days with no penalty. If you cancel after 14 days, you may be charged for work done up until the time of cancellation.
We use multiple partners to ensure we are able to offer claims against all types of lenders, from whom we receive payments. The exact fee structure will depend on which lender you are claiming against, as this decides which of our partners is most suitable for your claim. A breakdown of our fee structure can be seen here. The fees for Diesel Emissions Claims are calculated differently due to it being a group action lawsuit.
How Do I Submit My Claim?
Simply complete the online application form by clicking on the blue button below. This is the first stage of your complaint to your lender, where you could receive compensation. For more information on the process, please click here.