Frequently Asked Questions – Car Finance Compensation Claims
How long does a mis-sold car finance claim take?
Due to ongoing regulatory updates from the Financial Conduct Authority (FCA), the normal 8-week timeframe for handling Discretionary Commission Arrangement (DCA) complaints has been paused. The FCA has extended this pause until 4 December 2025 to allow for more data collection, legal reviews, and the outcome of the Barclays judicial review, expected in May 2025.
You can still submit your car finance claim today, and it will be placed in a queue for review. The pause ensures that all claims are investigated thoroughly and fairly, with updates to follow from the FCA as the process evolves. You will have until 29 July 2026 to escalate your complaint to the Financial Ombudsman Service (FOS) if needed.
Can I make a claim without having paperwork or loan documents?
Yes. You do not need to have your original documents to start your claim. With your consent, we perform a soft credit search (which doesn’t affect your credit score) to locate any past car finance agreements. If necessary, we can also request copies of your loan agreements directly from your lender. This typically takes 30 to 90 days.
How much compensation could I receive for mis-sold car finance?
The amount of compensation varies depending on your loan amount, interest rate, agreement length, and commission structure. According to the FCA’s 2019 Motor Finance Review, a £10,000 loan over four years could result in over £1,100 in excess charges due to discretionary commissions. Many customers receive average payouts of £4,000, but this can differ depending on individual circumstances.
Can I claim if my car finance is still ongoing?
Yes—if your agreement began before 28 January 2021, you may still be eligible to claim for mis-sold car finance. If your finance started after this date, it is unlikely to include an undisclosed commission, but we can check your agreement details to confirm eligibility.
How much are the fees for a successful claim?
Your claim is handled on a No Win, No Fee basis*, meaning there are no upfront charges. If your claim is successful, a Success Fee will apply, ranging from 15% to 30% + VAT (up to 36% total). This is calculated based on your total compensation before any lender deductions (such as arrears).
If your compensation is used to reduce any outstanding loan balance instead of being paid directly to you, the Success Fee still applies to the full redress value. A cancellation fee may apply if you terminate outside the 14-day cooling-off period, as outlined in your solicitor’s terms of business.
What is a commission claim on car finance?
A car finance commission claim refers to reclaiming money you may have overpaid due to undisclosed or discretionary commissions. These are commissions paid by the lender to the dealership, which may have encouraged them to inflate your interest rate—costing you more over the life of the agreement without your knowledge. These types of arrangements are now under investigation by the FCA.
How common were discretionary commission arrangements (DCAs)?
The FCA found that approximately 75% of car finance agreements between 2007 and 2020 included discretionary commission arrangements. This widespread practice may have unfairly inflated the cost of millions of PCP and HP agreements.
What types of car finance agreements are eligible for a claim?
You may be eligible if you had a:
- Personal Contract Purchase (PCP) agreement
- Hire Purchase (HP) agreement
Unfortunately, leases or rental agreements are not eligible for commission claims.
Why might I be eligible for compensation?
If you took out vehicle finance between 2007 and 2021, your agreement may have included a hidden or unfair commission. These commissions were often not disclosed to the customer and may have led to higher interest rates. If your agreement included a DCA, you could be entitled to compensation.
Do I have to use a solicitor or claims management company (CMC)?
No. You have the legal right to submit a complaint yourself for free to your lender or the Financial Ombudsman Service (FOS). However, many people choose to work with professionals like us to manage the process, benefit from industry expertise, and improve their chances of a successful outcome. If the lender has gone out of business, you may also submit a claim directly to the Financial Services Compensation Scheme (FSCS) at no cost.
What does ‘No Win, No Fee’ mean in car finance claims?
A No Win, No Fee arrangement (also known as a Conditional Fee Agreement) means you’ll only pay a fee if your claim is successful. There are no fees if your claim is unsuccessful. This gives you the freedom to pursue compensation without financial risk.
What fees apply under a No Win, No Fee arrangement?
If your claim is successful, your solicitor will deduct a Success Fee of between 15% and 30% + VAT (up to 36% total). This amount depends on your compensation value. If your compensation is applied toward a loan balance, the success fee will still be charged based on the full redress.
Cancellation fees may apply if you end your agreement outside the 14-day cooling-off period. All terms and conditions are clearly stated in your solicitor’s client pack.
Do you receive a fee if my claim is referred to a third party?
Yes. If you choose to use one of our recommended third-party solicitors, we may receive a marketing or referral fee. This does not affect your compensation, nor does it increase any success fees you pay to the solicitor. For full transparency, you can request details about this arrangement at any time.
Do you offer a free eligibility check?
Yes! We provide a free, no-obligation eligibility check to determine whether you may have a valid claim for mis-sold car finance. This check involves a soft credit search and requires no paperwork from you.