Car finance redress
Were You Mis-Sold Car Finance?
Independent and free. An honest checklist — not a hype funnel, and not a claims firm.
Redress estimate
Any figures here are an estimate, not a promise, and nothing on this page is financial or legal advice. You can claim free yourself — you don't need a claims firm.
You may have been mis-sold car finance if you took out a deal between 6 April 2007 and 1 November 2024 through a dealer or broker, where commission was payable, and you were not properly told about a DCA, a high-commission arrangement or a contractual tie. This page is an honest checklist, not a guarantee.
Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement. If the checklist fits, estimate your position with the compensation estimator and claim free yourself.
Were you mis-sold car finance?
You were potentially mis-sold if your car finance carried hidden, high or discretionary commission that pushed up your interest rate, and nobody told you. The clearest cases sit in the 6 April 2007 – 1 November 2024 window.
"Potentially" matters — being inside the window doesn't prove a problem. The FCA estimates about 12.1 million agreements fall in scope, but each is assessed on its own facts. It means it's worth checking properly, which costs nothing.
The eligibility checklist (PS26/3, tightened)
Three things together make a deal worth checking: the dates, a commission link, and a lack of disclosure. The final scheme tightened the test, so 0% and minimal-commission deals are now excluded.
The more of these that apply, the stronger your case. If your deal had no broker commission at all, there is no conflict to put right and you are generally outside the scheme.
- Dates: your agreement started between 6 April 2007 and 1 November 2024, where commission was payable to a broker.
- Route: it was arranged through a dealer or broker paid commission, not a direct bank loan.
- Commission problem: you were not told about a DCA, a high-commission arrangement (commission at least 39% of total cost of credit and at least 10% of the loan), or a contractual tie.
- Not excluded: your deal was not a 0% or minimal-commission arrangement.
What 'high commission' means
Eligibility at a glance
Some situations clearly qualify, some clearly don't, and some need checking. Use this table before assuming either way.
Leasing (PCH) is a hire agreement, not motor finance with a commission to a broker, so it is outside the scheme. The same applies to a direct bank loan you arranged without a broker.
| Situation | Likely eligible? |
|---|---|
| PCP/HP via a dealer, 2010–2020, no commission mentioned | Yes — worth checking |
| 0% APR deal, no commission | No — excluded |
| Deal with a properly disclosed, modest commission | Generally no |
| Deal with a large undisclosed commission after 2021 | Yes — if high-commission or tie |
| Direct bank loan you arranged yourself, no broker | No — no broker commission |
| Leasing (PCH) agreement | No — different product, outside scope |
How to check your paperwork
Dig out your original finance agreement and look for the APR, the lender's name and any mention of commission. If commission isn't mentioned at all, that's worth asking about.
Our letter template asks the lender those exact questions for you, in the right order.
- Find your finance agreement (the dealer or lender can resend a copy if you've lost it).
- Note the start date, the APR and the lender — see how to find your lender.
- Look for any line about commission. If there's none, ask the lender to confirm whether a discretionary commission, high-commission arrangement or contractual tie applied.
- Check whether the commission was disclosed in a way the FCA would accept (clear, specific, not buried).
Special situations
A few cases need a different check. Here's how eligibility treats them.
- You've sold the car or settled early — you can still claim; what matters is when the finance started.
- Your lender has gone bust — you may still qualify, via a successor firm, administrator or the FSCS.
- You're not sure who the lender was — start with how to find your lender.
- You used a claims firm before — you can still deal with the lender directly; you do not have to keep paying them.
Estimate what you could be owed
If the checklist broadly fits, the next step is a free estimate — then a free complaint. You don't need a claims firm at any stage.
Try the compensation estimator, then follow how to claim. Claiming is free and you can do it yourself: complain to your lender first, then escalate to the Financial Ombudsman Service. You do not need a claims-management company taking a cut. The scheme average is about £829 per agreement, but your figure depends on your deal, and any amount is an estimate, not a promise.
Common reasons people think they're excluded (and aren't)
Several things that feel like disqualifiers usually aren't. Here are the ones we hear most.
The honest test is narrow and factual: did a DCA, high-commission arrangement or contractual tie apply, and were you properly told? If you don't know, ask the lender — that's what the letter template does.
- 'I had a good credit score' — credit score doesn't matter; the issue is how the commission was set and disclosed.
- 'I shopped around' — shopping around doesn't mean the broker disclosed a DCA; many customers compared monthly payments, not commission.
- 'I signed the agreement' — signing doesn't waive an undisclosed-commission complaint; disclosure has to be clear and specific.
- 'The dealer was helpful' — helpfulness and a DCA are not mutually exclusive; the conflict existed whether the dealer was nice or not.
What's clearly excluded
The final scheme (PS26/3) tightened the rules, so several deal types are firmly outside. Knowing what's excluded saves you chasing a claim that can't pay.
- 0% APR deals — no interest and no meaningful commission, so there is no commission-driven conflict to put right.
- Minimal-commission deals — where the commission was token, below the scheme's thresholds, the deal is treated as not having a conflict worth redress.
- Direct bank loans you arranged yourself — with no dealer or broker in the chain, there is no broker commission and no DCA possible.
- Leasing (Personal Contract Hire, PCH) — a rental, not a loan; there's typically no broker commission of the kind the scheme targets.
- Properly disclosed commission — where the commission was clearly and specifically explained in a way the FCA accepts, the relationship is treated as fair.
Why 0% deals are out
High-commission arrangements explained
A high-commission arrangement is a fixed (non-DCA) commission that was large enough to matter on both tests: at least 39% of the total cost of credit AND at least 10% of the loan. Both thresholds must be met, and it must not have been properly disclosed.
The "total cost of credit" means the total interest and charges you pay across the agreement, not the car's price. The "loan" means the amount you borrowed. So a commission counts as high only if it clears both bars relative to those two figures. The FCA set both thresholds to filter out modest, ordinary commission and focus the scheme on arrangements with a real conflict.
If only one threshold is met, the commission is not a high-commission arrangement for scheme purposes — though an undisclosed DCA or contractual tie could still bring the deal into scope on a different basis.
Worked example: testing the thresholds
FOS vs court: which route?
For almost everyone, the free Financial Ombudsman Service route beats going to court. The scheme is built around it, and you keep more of any redress.
The ombudsman was set up precisely so consumers don't need a lawyer for disputes like this. Under the scheme, your lender has to engage with the ombudsman's decision, and you only accept it if you're happy. Going to court is rarely worthwhile for an individual car finance claim and is not something the scheme expects you to do.
| Feature | Financial Ombudsman | Court |
|---|---|---|
| Cost to you | Free | Court fees plus possible legal costs |
| Need a lawyer | No | Usually yes, or you represent yourself |
| Binding on lender | Yes, if you accept | Yes, after judgment |
| Designed for the scheme | Yes — built into PS26/3 | No — separate track |
| Typical speed | Months | Often a year or more |
A quick self-check
Run your deal through these four questions before you do anything else. If you answer 'yes' to the first three and 'no' to the last, it's worth a free complaint.
If you land on 'yes, yes, yes, no', you're in the zone where a free complaint makes sense. If you're unsure about question 3, that's exactly what the letter template finds out for you — ask the lender directly.
- Did your finance start between 6 April 2007 and 1 November 2024?
- Was it arranged by a dealer or broker paid commission?
- Were you not clearly told about a DCA, high-commission arrangement or contractual tie?
- Is it a 0% deal, a minimal-commission deal, a direct bank loan or a PCH lease?
Unsure is enough to ask
Eligibility scams to ignore
A few eligibility-related claims do the rounds in adverts and messages. None of them are how the scheme actually works.
- 'You're pre-eligible, click here' — no firm can pre-confirm eligibility; only your lender's records can, after you complain.
- 'We can get you more than the £829 average' — the average is just an average; no firm can move your deal's maths.
- 'Guaranteed eligibility if you had PCP' — PCP helps, but a 0% PCP or a disclosed-commission PCP is still excluded.
- 'Pay a fee for a fast-track eligibility check' — there is no fast track; the free letter to your lender does the same job.
Eligibility is a fact, not a sales line
If your deal is borderline
Some agreements sit on the edge of eligibility — for example, a modest commission that was partially mentioned. Borderline cases are still worth a free complaint, because the lender has to assess them.
You don't have to be certain to complain. The lender will check whether the commission met the scheme's thresholds (for a high-commission arrangement, at least 39% of total cost of credit and 10% of the loan) and whether disclosure was adequate. If you disagree with their answer, the Financial Ombudsman will look again, for free.
Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement.
When in doubt, ask
Frequently asked
Was my car finance mis-sold?
What makes a car finance agreement mis-sold?
Are 0% deals included?
How do I check my paperwork?
Do I need a claims company to check?
What exactly counts as a high-commission arrangement?
Is it better to go to court or the Financial Ombudsman?
Can I be eligible if I've already settled the finance?
Sources
We cite regulators and official UK sources only.
- Financial Conduct Authority — motor finance redress schemefca.org.uk
- UK Supreme Courtsupremecourt.uk
- Consumer Credit Act 1974legislation.gov.uk
- Financial Ombudsman Servicefinancial-ombudsman.org.uk
Work out your next step
Independent calculators — pick the one that fits your situation.