Managing your finance
How to Complain About Your Car Finance
How to complain about your car finance — to the lender first, then the Financial Ombudsman.
To complain about car finance, write to your lender first setting out what went wrong and what you want fixed; if they don't resolve it within eight weeks, you can escalate free to the Financial Ombudsman Service. Complaining is always free.
This works for poor service, unfair charges, mishandled payments and mis-selling. You never need to pay a claims firm to complain on your behalf — and you keep 100% of any redress by doing it yourself.
How do you complain about car finance?
Start by complaining directly to your lender in writing, clearly stating the problem and the outcome you want. The lender must investigate and respond.
Most complaints are resolved at this stage. If yours is about hidden commission or mis-selling, see how to claim compensation yourself and the free letter template. The lender has up to eight weeks to send a final response — and if they don't, or you're unhappy with it, you go to the Ombudsman.
The reason you start with the lender is that the Financial Ombudsman won't usually look at a complaint until the lender has had a fair chance to fix it. Skip that step and the Ombudsman will send you back. Keep copies of everything you send and receive — dates and paperwork win complaints.
How to make a complaint, step by step
Put your complaint in writing, give the lender a chance to respond, then escalate if needed. Follow these steps.
Be specific. State the facts (dates, amounts, what was said), the impact on you, and the outcome you want — a refund, an apology, a charge reversed, compensation. Vague complaints get slower, weaker responses. If you have evidence (statements, the agreement, screenshots), attach copies.
You can complain by letter, email, online form, or phone — but a written record is strongest. If you call, follow up in writing so there's a paper trail.
- Write to your lender: explain what went wrong, with dates, and what you want.
- Keep copies of everything, including emails, letters and call notes.
- Give the lender up to eight weeks to send a final response.
- If you're unhappy with the response, or get none, take it to the Financial Ombudsman Service.
- Submit your complaint to the Ombudsman within six months of the lender's final response.
Escalating to the Financial Ombudsman
The Financial Ombudsman Service settles complaints between you and your lender for free, and its decisions are binding on the lender. You can use it once the lender has had its chance to respond.
The Ombudsman is independent and doesn't take a cut of any award. You have six months from the lender's final response to bring your complaint — miss that window and the Ombudsman usually can't help. There's no need for a claims-management company — you keep 100% of anything you're owed.
To escalate, fill in the Ombudsman's online form or call them. They'll ask for your complaint details, the lender's response, and any evidence. The Ombudsman's decision is binding on the lender if you accept it, but you're not bound — you can still go to court if you disagree, though most people accept.
It's free to complain
What you can complain about
Any failure by the lender to treat you fairly is grounds for a complaint. The most common categories are below.
If your complaint is about hidden commission or mis-selling, you may be owed money back under the FCA's motor finance redress work — see the scandal explained. You can estimate your position with the compensation estimator — it's an estimate, not a promise, and you can claim free yourself.
| Complaint type | Example | Possible redress |
|---|---|---|
| Unfair charges | Fees added without clear notice | Refund of the charge |
| Poor service | Settlement figure delayed or wrong | Apology + correction |
| Mishandled payments | Payments misapplied or arrears mismanaged | Correction + compensation |
| Mis-selling / hidden commission | Commission not disclosed (DCA) | Compensation / interest refund |
| Affordability failure | Lent to you when you couldn't afford it | Refund + interest removed |
Complaining about mis-sold finance
If your complaint is about hidden commission or a mis-sold agreement, the same free route applies — lender first, then the Ombudsman. You may be owed redress.
The car finance mis-selling scandal is covered in the scandal explained. Following the Supreme Court ruling in August 2025, the FCA confirmed a redress scheme, with payouts expected through 2026. If your agreement was affected, the same eight-weeks-then-Ombudsman process applies — and it's free.
Use our free letter template to write to your lender. The letter sets out the unfair-relationship argument under section 140A of the Consumer Credit Act 1974 and asks for redress. Don't pay a claims firm to send the same letter you can send yourself.
Claims firms — what they cost you
Claims-management companies charge a sizeable slice of any award for a process you can run yourself for free. Their role is optional, not required.
MoneyHelper reports that some claims firms take up to 36% of the compensation, plus VAT, for handling motor finance complaints. On a £1,000 award, that's £360+ gone. The complaint process is the same whether you or they submit it — the lender has eight weeks, then the Ombudsman. There is no advantage a claims firm brings that justifies that cut, and no 'deadline' you need them to beat.
If you're already signed up with a claims firm, you usually have a 14-day cooling-off period to cancel. Check the contract, cancel in writing if you want to, and run the complaint yourself using our free letter template.
Beware 'no win, no fee' claims firms
How long a complaint takes
Expect up to eight weeks for the lender's final response, then several months if it goes to the Ombudsman. Mis-selling complaints are taking longer due to volume.
The lender has up to eight weeks by FCA rule. The Ombudsman's timeline depends on complexity and caseload — straightforward cases can resolve in a few months; mis-selling complaints during the FCA's redress work may take longer. You can check progress through the Ombudsman's online portal once your case is open.
What redress could you get?
Redress for an upheld complaint is usually a cash refund of the unfair charge plus 8% statutory interest, or a full refund of undisclosed commission with the interest it generated. The Ombudsman sets the standard calculation.
The 8% interest is the Ombudsman's standard rate for the time you were out of pocket — it applies from the date the money was wrongly taken until the date it's repaid. On a mis-selling claim the calculation can be larger, because the commission itself plus all the interest you paid on it over the life of the agreement gets returned. Use the compensation estimator to gauge your position before you complain — it's an estimate, not a promise, and the final figure is set by the lender or the Ombudsman.
If the lender's final offer is a lower figure than you expected, you don't have to accept it. Reject it in writing and escalate to the Ombudsman, who re-decides the case from scratch rather than reviewing the lender's offer. Many upheld complaints end with a higher payout than the lender first offered.
| Complaint | What you may get back | How it's calculated |
|---|---|---|
| Unfair charge | The charge refunded | Full amount of the charge, plus 8% interest |
| Hidden commission (DCA) | Cash payout | Commission refunded plus the interest you paid on it |
| Affordability failure | Interest removed | Loan restructured to remove interest and charges |
| Mishandled payments | Compensation | Direct loss plus a goodwill payment for distress |
Worked example: a hidden-commission payout
What good evidence looks like
A strong complaint names the dates, amounts and people involved, and attaches the documents that prove it. Vague complaints fail more often than specific ones.
Before you write, gather: a copy of the original finance agreement, your payment history (statements or a printout from the lender's portal), any correspondence about the issue (letters, emails, call notes with dates and times), and the settlement figure if your complaint is about early settlement. If you're claiming hidden commission, your lender must hand over the commission details on request — under UK GDPR you can make a Subject Access Request, usually free, and they have one month to respond.
Set your complaint out in numbered points: what happened, when, who was involved, what the impact was, and what you want done about it. Reference the rule you think was broken — for example, FCA CONC rules on affordability, or section 140A of the Consumer Credit Act 1974 for an unfair-relationship claim. Lenders and the Ombudsman both respond faster and more fully to complaints that are specific and evidenced.
Keep a dated paper trail
Frequently asked
How do you complain about car finance?
Is it free to complain about car finance?
How long does a car finance complaint take?
What can you complain about with car finance?
Do you need a claims firm to complain?
What happens if the lender ignores your complaint?
How much compensation could I get for a car finance complaint?
Do I have to accept the lender's first offer?
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