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.2
Key Information
Average £2,086 per household1
Household refund values are based on data published by the Office for National Statistics (ONS) and the Financial Conduct Authority (FCA), together with analysis of vehicle finance agreements identified through our process. Calculations assume 2 adults per household and 3.4 vehicle finance agreements per person. FCA data indicates average compensation of £829 per agreement and that 37% of agreements may be affected. Eligibility and compensation will vary and are not guaranteed.
FCA motor finance update2
As a result of its review of the motor finance industry, the FCA announced a consumer redress scheme in March 2026. The scheme is currently subject to legal challenge. This does not affect our claims process, and we will continue to keep our customers informed of further developments.
No Win No Fee3
We will run a free vehicle finance check. If we find you may be eligible, we will refer your claim(s) to our law firm partner My Law Matters (MLM). We will let you know before we do this. MLM will submit eligible claims to your lender(s) on a no win no fee basis. If successful, MLM's fee is between 15% to 30% + VAT (18% to 36% total) of the amount recovered. MLM may charge a fee if you cancel after the 14-day cooling off period, this will be explained in their documentation which we will send to you. MLM pay Claims1 a referral fee for claims referred, this is not payable by you.
Information Sources4
The FCA have estimated that individual claims will be worth an average of £829. For detailed information regarding potential claim values and the FCA's estimate of the number of vehicle finance agreements that were mis-sold, please refer to https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme and https://www.fca.org.uk/publication/policy/ps26-3.pdf (page 12)
Alternative Ways To Claim
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 to make a claim. See Claims1 Terms & Conditions and Key Facts for full details including all fees applicable on payout of your claim.