Are You Eligible for Car Finance Claims in the UK?

Are you eligible for car finance claims? Millions of UK drivers may have unknowingly overpaid on their car loans. If you were mis-sold a car finance deal, it might have cost you thousands in hidden fees high interest, and secret broker commissions. It’s time to reverse all of that!

This guide will help you reclaim what’s yours. Learn how to spot a mis-sold finance deal and take action. Check for red flags in your agreement and make your car finance claims with confidence.

The Mis-Selling Scandal: What Went Wrong?

The car finance mis-selling scandal is all about hidden broker commissions. Between 2007 and 2021, many brokers secretly took payments from lenders to arrange finance deals.

These commissions were never disclosed to customers, meaning you likely paid more than you should have. Here is what happened when lenders and brokers worked together to inflate interest rates.

Brokers pushed higher rates to pocket bigger commissions, while you ended up paying extra. It’s a £10 billion scandal that’s affected millions of UK drivers.

Some big names are also involved here. The Financial Conduct Authority (FCA) has stepped in to hold them accountable. They found these practices broke the rules, and now you have until December 2025 to claim your share.

Why Should You Care for Car Finance Claims?

You should care simply because if you were misled into signing a finance agreement, you deserve justice. If you were sold a car finance deal with hidden fees, unfair terms, or undisclosed commissions, you could be owed money. You might have overpaid for car finance without knowing, but now car finance claims can help you get that money back.

 You should keep in mind that it is not some complicated legal mess. It is about fairness and justice. The Financial Conduct Authority (FCA) is cracking down on unfair practices and now is the time to act. Numerous people in the UK have already reclaimed thousands of pounds.

How to Check & Start Your Car Finance Claim?

If you financed a car between 2007 and 2021, you might be eligible to claim. Even if you no longer own the car or have paid off the finance, you can still claim. The key is that you have to prove that the agreement was mis-sold. If you meet any of these conditions, you could be eligible for compensation. 

Here’s what to look for:

• You used a PCP, HP, or leasing agreement to finance your car.
• You felt misled or pressured into signing the deal.
• You were charged hidden fees or unfair interest rates.
• Your broker didn’t tell you about their commission.

If any of these apply to you, you could be entitled to compensation. Start your car finance claim today with a trusted car finance claims platform and find out how much you’re owed.

How to Spot a Mis-Sold Car Finance Deal?

You don’t know how to spot whether you were mis-sold the car finance or not? Don’t worry. There are several red flags you should know. Hidden fees and unclear terms are common ones. Many people paid extra charges they weren’t told about. Some were rushed into deals without enough time to understand them.

Similarly, undisclosed commissions are another red flag. Brokers often took payments from lenders without telling customers and many ended up with deals that didn’t suit their needs.

Also, check your old agreements and bank statements if fees or commissions aren’t mentioned. There is a chance mis-selling had happened and you owed money. 

Step-by-Step Guide: How to File a Car Finance Claim?

Filing a car finance claim is easier than you might think.

• Start by gathering your finance agreement, emails, and any other documents related to your deal.
• You should check in detail for any hidden fees or undisclosed commissions.
• Next, contact your lender and raise your concerns. Most lenders have a complaints process and may offer a refund if they find mis-selling.
• If the lender doesn’t resolve your issue, seek help from a claims company. They can handle the process for you, ensuring you get what you’re owed.
• If your claim is unfairly rejected, escalate it to the Financial Ombudsman Service. They will review the case independently.
• A claims expert can take care of everything, from paperwork to negotiations, making the process hassle-free.

Don’t wait for too long, act now and file your claim before the deadline.

Frequently Asked Questions:

1. How much will I get from car finance claims?

You could get back anywhere from £500 to £10,000, depending on your loan size. Hidden commissions add up fast, and many drivers have already claimed thousands.  However, smaller loans usually mean smaller refunds, but bigger loans with high interest could bring much more.

Every bit of money helps. Even £500 could cover a bill or a small treat, while a larger payout could make a big difference. If your car finance was mis-sold, that money should be in your pocket, not the lender’s.  

2. Can I claim if I have paid off my loan?

Yes, you can still claim even if your loan is fully paid off. Your eligibility depends on whether you were mis-sold the finance, not whether the loan is active. Lenders and brokers often hid commissions or charged unfair interest, which means you may be owed money. As long as your agreement was between 2007 and 2021, it’s worth checking.

3. When will car finance claims be paid?

The time varies, but most claims take between a few weeks to a few months. Some cases are settled quickly, especially if the lender cooperates, while others take longer if they dispute the claim. A claims company can speed up the process by handling paperwork and negotiations. The sooner you start, the faster you’ll know what you’re owed.

4. What if my lender went out of business?

You may still be able to claim compensation. In some cases, the Financial Services Compensation Scheme (FSCS) steps in to cover claims against failed lenders.

If your lender no longer exists, a claims expert can check if another organisation is responsible for refunds. Don’t assume you can’t claim—many people still get compensation even when lenders have shut down.

5. What if my lender rejects my claim?

If your lender refuses your claim unfairly, you can take it to the Financial Ombudsman Service (FOS). The FOS will review your case independently and decide if you are owed money. Many people who were initially rejected later received payouts. If your claim is strong, it’s worth escalating rather than giving up.

6. Will it cost me anything to start?

Most claims companies work on a “no win, no fee” basis, meaning you only pay if you win. Some charge a percentage of your compensation as a success fee, so check their terms before agreeing. There are no upfront costs to check if you’re eligible. If you claim directly, it’s completely free.

8. What are common myths about car finance claims?

Many people believe they can’t claim if they no longer own the car, but that’s not true. Your car finance agreement is what matters, not the car itself. If you had a mis-sold deal, you can still get your money back.

Some also think the process is too complicated. In reality, it’s much easier than you expect. A claims company can handle everything for you, from paperwork to negotiations.

Worried about going to court? There’s no need. Most claims are settled without any legal action. If your case does go further, experts will guide you through it.

Final Thoughts: Are You Eligible for Car Finance Claims?

Mis-sold car finance could have cost you thousands of pounds unknowingly. Without realising it, you might have paid more than you should due to secret broker commissions and unfair loan terms.

Check your finance agreement for undisclosed charges and compare your interest rates. If something seems off, you may be eligible for a refund. You can also seek expert help to review your case and guide you through the claim.

By following these steps, you can take control of your finances and reclaim what’s yours. For more insights on car finance and other such topics, visit our blog and explore our free resources.