Car Finance Claims
FAQs

Why might I have a claim?

If you purchased a vehicle on finance during, or after 2007 then it is likely that the car finance was mis-sold to you due to the car dealership failing to disclose commission they were paid by the lender for setting up your car finance.

The Financial Conduct Authority has analysed 31.86 million car finance agreements taken out since 2007 and it found that 24.29 million of those agreements had commissions paid by the lender to the dealership.*

The FCA estimates that up to £9.7 billion compensation could be due to consumers, due to the widespread non-disclosure of commission.

*See https://www.fca.org.uk/publication/consultation/cp25-27.pdf - §3.5, page 19

How long will my claim take?

Due to the Financial Conduct Authority’s pause on lenders' responding to complaints around motor finance commissions, your lender does not have to respond to your claim until after 4 December 2025. The FCA is currently consulting on a proposed redress scheme and, within its consultation paper, it has expressed its intention to further extend the pause on responding to complaints until after 31 July 2026 in order to give the lenders time to implement the redress scheme. We believe the further extension is likely to occur, however we will keep you updated on any developments regarding time frames as and when we learn more.

How much could my claim be worth?

The amount of compensation you may be entitled to is dependent on several factors, including the amount of finance your lender provided, the date the finance was taken out, the duration of the agreement, the interest rate you paid and, the nature and, value of the commission payment your Lender made to the car dealership.

In its Consultation Paper (CP25/27), the Financial Conduct Authority stated that it expects eligible consumers to receive an average of around £700 per agreement, though some consumers could receive more or less.*

*See:https://www.fca.org.uk/publication/consultation/cp25-27.pdf - §1.30, page 9

Do I need to use a law firm, or claims management company to make my claim?

You do not have to use a law firm, or claims management company to make your claim. You can claim directly yourself for free to your lender using the Financial Conduct Authority’s (FCA) compensation scheme, and then the Financial Ombudsman.

The FCA have now proposed the draft rules of the compensation scheme which confirm it will be free and simple for consumers to use. Once the scheme starts if you may be eligible for compensation your lenders should contact you to confirm this.

Although you can make use of the free compensation scheme, you may find it preferable to use a professional representative, like us, to help you manage the claims process due to our expertise in this area, or simply because you do not have the time.

What are your fees?

If we are successful in obtaining an offer or payment of Compensation, then you pay us a Success Fee which is calculated based on the amount of Compensation your lender offers per credit agreement. The table below details the Success Fee percentage applicable to different bands of Compensation, and the maximum total Success Fee for each compensation band.

The percentages and amounts in the table above are exclusive of VAT, which is charged at the prevailing rate.

If you have an outstanding balance with your Lender they may use all, or part of, your compensation to pay this outstanding balance meaning that you may not receive any cash “in hand”. In this event, our Success Fee will still be calculated against the full compensation amount.

Example 1: If your Lender makes an offer of £1,000 compensation and you have no outstanding balance with the Lender, your Lender will pay us £1,000. Of this, £360 will be deducted to pay our Success Fee and VAT, and £640 will be paid to you.

Example 2: If your Lender makes an offer of £1,000 compensation and you have an outstanding balance of £800 with the Lender, your Lender may use the compensation offered to pay the outstanding balance meaning they will only pay us £200. We would use this £200 toward our Success Fee and VAT, which would leave a balance of £160 payable by you.

As an outcome of their review of the motor finance industry the Financial Conduct Authority has confirmed it intends to consult on a compensation scheme. If such a scheme is put in place our Success Fee will still be payable to us on consideration of the work we have completed on your behalf.

I was referred to you via a third-party, how are they paid?

If you have been introduced to us via a third-party, we will pay them a fee for this introduction. This fee is usually a percentage of our Success Fee for any successful claim. This fee is paid directly from us to the third-party at no cost to you.