Frequently Asked Questions
Get answers to the most common questions about car finance mis-selling claims. Find out if you're eligible for compensation and learn about the claims process.
If you bought a car, van, or motorbike with a personal contract plan (PCP) or Hire Purchase (HP) after April 2007, you could be owed money. The Financial Conduct Authority (FCA), which regulates the vehicle finance industry, carried out a major investigation into hidden and unfair car finance commissions and discovered that in many cases, vehicle dealers were paid a commission by finance companies, with higher interest rates leading to higher commissions. This often meant that customers unknowingly overpaid.
This practice, known as "discretionary commission arrangements" (DCAs) is now banned and, as a result, many people could be owed refunds through the FCA's redress scheme.
By filing your claim now, you can make sure you have everything in place for when the FCA redress scheme takes place which should be early in 2026, as per the FCA's recent update.
Key Information
Average £2,8451 per household
1Refund value is based on an average of 2 adults per household, and an average of 4.62 car finance agreements per person. As notified by the FCA, the average redress value will be average £700 per claim with 44%4 of claims likely to have been mis-sold.
FCA motor finance update2
The FCA has extended the deadline for motor finance firms to respond to complaints about discretionary commission arrangements to early 2026. In October 2025, the FCA confirmed that it is consulting on a consumer redress scheme which is likely to be introduced in 2026. For more information and official updates, visit: https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
No Win No Fee3
We work on a 'No Win, No Fee'3 basis which means you pay nothing unless your claim succeeds. A fee of 18–36% (including VAT) applies only on successful claims, and a cancellation fee may apply after the 14 day cooling off period.
Information Sources4
In August 2025 the FCA estimated that individual claims would be worth up to £950. In October 2025 the FCA have revised that figure to around £700 on average. For detailed information regarding potential claim values2 and the FCA's estimate of 44%4 of vehicle finance being mis-sold, please refer to https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme2
About Your Choices
Please be aware that you can make a free motor finance mis-selling claim directly with your lender, through the FCA redress scheme, or via the Financial Ombudsman Service. We can do the work for you, but you do not need to use a claims management company or law firm.