Car Finance Claims
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If you used car finance since 2007, that agreement may have been mis-sold.
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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Martin Lewis On Car Finance - What He's Said
Millions of car finance agreements are being reviewed over commission arrangements between lenders and car dealers that customers may not have been properly told about. The FCA has introduced a compensation scheme for customers it believes were treated unfairly, although parts of the scheme are currently subject to a legal challenge.
Martin Lewis has been one of the most prominent voices covering the car finance compensation story. He has encouraged motorists who may be affected to get a complaint logged, while making clear that you can complain yourself for free.
But he has also raised an interesting question about how much compensation motorists could receive.
Could The FCA's £829 Be Too Low?
The FCA estimates average compensation of around £829 per eligible agreement.
Martin Lewis has said the FCA's redress amounts are likely to be a compromise and that payouts are lower than the amounts people have been going to court might hope to receive.
He has also highlighted the trade-off: going to court may potentially result in more compensation, but most people would need professional help and could give around 30% of their award in fees.
His view is that consumers need to make that decision for themselves.
How Do Our Partner's Results Compare?
Our partner law firm, HD Law, achieved average historic redress of £1,846.23 per successful car finance agreement up to 31 July 2025, before fees.
Their fees can be 15% to 30% plus VAT. Even after a maximum 30% + VAT fee, £1,846.23 would leave approximately £1,181.
Compare that with the FCA's estimated average of £829.
These aren't like-for-like figures: £1,846.23 is HD Law's historic average from successful claims and isn't a prediction of what you would receive, while £829 is the FCA's estimated scheme average. Individual outcomes can be higher or lower.
Could Your Car Finance Be Affected?
If you had PCP or Hire Purchase car finance between April 2007 and November 2024, your agreement could potentially be affected. Click below to find out if you could be eligible for a claim.
The Claims Guide and our other partners are not associated with, endorsed by, or affiliated with Martin Lewis or MoneySavingExpert.
Martin Lewis
“£13 billion could be paid out over car mis-selling.” “This is enormous... we're talking about systematic, mass scale mis-selling” [1]
BBC
"Motorists who bought cars on finance could share in billions" [2]
MoneySavingExpert
“This could lead to billions of pounds of overcharged interest paid back to millions of people.” [3]
Was My Car Finance Mis-sold?
Over 17 million UK car finance agreements could potentially be affected
You may be able to claim if your agreement falls into one of the categories below:
1. Discretionary Commission Arrangement (DCA) ~11.4 million agreements
Your interest rate may have been increased by the dealer or broker so they could earn more commission without this being clearly explained.
Applies to agreements from 2007 to 28 January 2021
2. Contractual Ties ~3.2 million agreements
The dealer may have been tied to a specific lender, which could have influenced the finance deal you were offered, limiting your options.
Applies to agreements from 2007 to November 2024
3. Unfairly High Commission ~2.9 million agreements
The commission may have been disproportionately high compared to your interest or loan amount, potentially making the agreement unfair.
Applies if the commission was above 35% of the interest (cost of credit) and above 10% of the total loan amount
Applies to agreements from 2007 to November 2024
Even If You Don’t Have the Paperwork
Don’t worry if you can’t find your agreement or remember the lender or dealership.
We can find your agreements for you using a few basic details and check whether you are eligible.
Check If You’re Eligible in 60 Seconds
It’s free to check, and there’s no obligation to proceed.
Claims through our partner HD Law received an average of £1,846 per claim (minus fees of 18-36%). This figure is the average claim value per agreement of HD Law as of July 31st 2025. All clients will be litigated in court, where lawyers seek to get the most redress possible for consumers.
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.
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.
Use our Claim Checker – quick eligibility check in minutes
FAQs
Why Use The Claims Guide
Maximise potential redress: Our partner law firm can assess whether taking your case to court 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 per claim (average of two claims per claimant). While many other law firms simply use the FCA scheme; our lawyers always seek to get the most 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 some CMCs will likely pursue a higher amount of redress for their customers.
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.
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.
£1,846.23 (minus fees of up to 36%) is the average redress achieved by our partner law firm HD law per claim (average of two claims per claimant). While many other law firms simply use the FCA scheme; our lawyers always seek to get the most compensation for customers.
A breakdown of our fee structure can be seen here.
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.