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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. However, 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.
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.
Close Brothers Claims
The motor finance industry has been under intense legal and regulatory scrutiny recently. In particular, the FCA and UK courts have examined whether lenders, including Close Brothers, mis-sold car finance by failing to disclose or properly structure commission payments to dealers (especially under “discretionary commission arrangements”, or DCAs).
In early 2025, Close Brothers set aside £165 million to cover potential compensation, legal and complaint-handling costs related to hidden commission claims. The Guardian
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The Supreme Court recently delivered a decision (1 August 2025) in the consolidated motor finance commission cases: it overturned much of a Court of Appeal ruling that dealers owed fiduciary duties to customers regarding commission structures. However, in one instance (Johnson’s case), a commission equal to 55% of the total cost of credit was found to create an unfair relationship, and compensation was awarded. Tees Law
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The FCA has proposed a redress scheme, estimating that the cost to industry could lie between £9 billion and £18 billion. This is mainly due to discretionary commission arrangements. Reuters
Because Close Brothers is one of the lenders most exposed to motor finance, many customers who took out HP or PCP agreements through them might be affected. Even though the Supreme Court decision reduced the scale of liability in some respects, there are still pathways for valid claims—particularly where commissions were improperly disclosed or where customers were not made aware of how interest rates were influenced by dealers’ commissions.
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 Close Brothers Loan Mis-sold?
Your Close Brothers car finance may have been mis-sold if the agreement was unaffordable, unclear, or your agreement included a Discretionary Commission Arrangement (DCA). If any of the following apply to your experience, you could have a valid claim. Click below to find out if you are unsure if you were affected by any of these, and claims professionals will investigate:
The interest rate or repayments were higher because the dealer received a commission that wasn’t disclosed
Courts (including the recent Supreme Court decision) have ruled that certain commission arrangements, especially DCAs, can create unfairness when hidden.
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You were not told the dealer had discretion to set or vary your interest rate based on commission
Lack of transparency is central to many claims. If you weren’t informed, this strengthens your case.
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The finance was unaffordable, or no proper affordability checks were carried out
Under FCA rules, lenders must assess affordability. Mis-selling often arises when this is neglected.
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The terms and conditions were rushed, unclear, or hidden in the finance agreement
If contract terms were opaque, especially around commission or interest. This is often key in successful claims.
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You felt pressured into accepting a finance package without being offered alternatives
The law expects fairness and choice. Pressure tactics or failing to explain options like HP vs PCP can amount to mis-selling.
If any of these points sound familiar, you may have been mis-sold your Close Brothers loan and could be owed compensation.
Be aware, there are statutory deadlines, known as limitation periods, that apply to mis-selling claims.
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 referred to our partner lawyers for litigation, as they believe this route offers the potential to achieve higher compensation.
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.
For the FCA's latest information about the motor finance redress scheme, see the FCA's guidance here
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.