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There are several ways a car finance deal might have been mis-sold to you. These include:

• You weren’t told about the commission in your agreement
• You were told about the commission but not how much it was
• Your finance agreement had high interest rates
• The lender didn’t carry out strong enough affordability checks
• You weren’t told about relationships between lenders and brokers

Hundreds of firms may have been selling PCP finance with discretionary commission arrangements. These include big names like Santander, Barclays, Mercedes Benz and BMW. There are also a number of firms that say they never used these arrangements, such as Admiral, Halifax, and Bank of Scotland.

Firstly, check any documentation you may have from your finance agreement. It could be on paper or digital documents. Search your email for the make and model of your car, the car finance provider’s name, dealership or vehicle registration number. If you’re not sure of the details, try checking your credit history (it should be there if it’s been active in the last 6 years) or check old bank statements.

You can still make a PCP claim if you bought your vehicle second-hand or if you want to make claims for more than one vehicle. However, your claim should be for a personal vehicle rather than one you use for business.

There’s no set sum for the amount that you could receive back, but it could be thousands of pounds. The FCA says that the average amount overpaid on a £10,000, four-year finance deal is £1,100. The larger the financing and higher the interest rate, the more you could be due to get back.

The exact length of time it takes for the claim to be processed can depend on various factors and is different for each individual case. It could take a few months if the lender or car dealer accepts responsibility.

The FCA has paused motor finance complaints from the statutory 8-week deadline until after 25 September 2024 whilst they examine the issue of car finance sales that involved discretionary commission. This is to ensure that if a consumer is entitled to compensation, they get it in the best way possible. We can still lodge a complaint with your finance provider but will not receive a response until after the FCA has completed its review.  To find out more, visit: https://www.fca.org.uk/consumers/car-finance-complaints

Investor Compensation (UK) Ltd is a Claims Management Company. You do not need to use our services to make your complaint, you can do this yourself for free by contacting your lender directly. If your complaint is not successful you can refer it to the Financial Ombudsman Service or, if the firm is no longer trading, the Financial Services Compensation Scheme.

*No Win, No Fee* 

A success fee between 18% and 30% (including VAT) will be charged if your claim is successful. If you cancel your claim after the 14-day cooling-off period, you may still be charged a fee. If you terminate the Agreement outside of the 14 day Cancellation period, You will be liable to pay Us our reasonable costs incurred in relation to Our Services at the rate of £175 per hour (including VAT).