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If you're new or looking for answers to your questions about reclaiming car finance, see the answers to popular questions.
Mis-sold Car Finance in the UK? Get Answers Now!
Reclaim compensation for PCP or HP agreements. Learn if you're eligible, what documents you need, and the claims process. Free UK-based experts ready to help.
Mis-sold car finance occurs when a dealer or broker fails to disclose commissions, inflates interest rates without explanation, or neglects proper affordability checks, leading to unfair financial agreements. If you suspect this happened to you, it's advisable to review your agreement and consider seeking compensation.
To determine if your car finance was mis-sold, assess whether you were informed about any commissions, if the interest rates were clearly explained, and if affordability checks were conducted. If any of these were lacking, you might be eligible for compensation.
If you entered into a Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement between 2007 and January 28, 2021, and were not fully informed about commissions or interest rates, you could be eligible to claim compensation.
Compensation varies based on factors like the loan amount and interest rates. While individual amounts differ, some claimants have received significant refunds. It's beneficial to assess your specific situation to understand potential entitlements.
While having documents can be helpful, many claims can proceed without them. Firms can often retrieve necessary information on your behalf, making the process straightforward.
The duration varies, but initial assessments can be quick. Given the volume of claims, some responses might take longer. Starting your claim promptly can expedite the process.
Initiating a claim typically involves a soft credit check, which doesn't impact your credit score. Your financial standing remains unaffected during the claims process.
Yes, if you had multiple PCP or HP agreements that were mis-sold, you can file separate claims for each. It's essential to review each agreement individually.
You can ask for a review, provide more evidence, or escalate your case to the Financial Ombudsman for an impartial decision.
Timelines vary, but most claims take a few weeks to several months depending on lender response times and case complexity.
Useful documents include your finance agreement, dealer correspondence, and payment statements — but many claims start without these.
No-win, no-fee services typically only charge a percentage of your payout if your claim is successful. You won’t pay anything upfront.
If your claim is unsuccessful, you can escalate the matter to the Financial Ombudsman Service, which offers a free and impartial review of complaints.
Generally, you have six years from the date of the agreement or three years from when you became aware of the mis-selling to file a claim. Acting promptly ensures your case is considered.
Yes, you can still claim for mis-sold car finance even if the agreement has been fully paid. As long as the finance was active within the eligible timeframe, you may still be entitled to compensation.
The most common types are Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements. These are the agreements most affected by hidden commissions and mis-selling.
While similar in the sense that both involve financial mis-selling, car finance claims are based on undisclosed commissions or unfair lending practices related to vehicle purchases — not payment protection insurance.
A discretionary commission arrangement allowed car dealers to increase your interest rate to boost their own commission — often without telling you. This lack of transparency is central to many claims.
Yes. Many claims involve major dealerships and lenders. If the dealer arranged your finance and didn’t fully explain the commission or interest rate, you may be eligible.
You don’t have to use a solicitor, but legal experts can handle the claim process more efficiently and push for the maximum compensation available. Many services offer no-win, no-fee support.
No, the initial assessment is free. You won’t be charged upfront, and in most cases, you only pay if your claim is successful.
Usually just your name, address history, and date of birth. This allows the team to run a soft credit search to identify your past car finance agreements.
Yes. A soft credit check can often retrieve your past finance agreements, even if you don’t have the documents or exact dates.
No. Whether you financed a car, van, or motorbike, you may still qualify to reclaim if the finance was mis-sold.
Yes, self-employed individuals are protected under consumer finance laws and can reclaim mis-sold agreements just like employed drivers.
It’s rare. Most car finance claims are resolved through negotiation or regulatory channels without the need for legal proceedings.
No, your claim handler or solicitor will deal with the lender directly. You’ll be kept informed but won’t need to handle any back-and-forth yourself.
Yes, you’re free to cancel your claim at any time before final submission or settlement. There’s no obligation to continue if you’re unsure.
Yes, you can cancel your claim at any point before it’s settled. There’s no obligation to continue if you change your mind.
A balloon payment is a large final sum due at the end of a PCP car finance deal. If this wasn’t clearly explained to you, it may support a mis-selling claim.
Unlike general loan disputes, reclaiming car finance focuses on hidden commissions and unfair interest rates applied by lenders and dealers.
Possibly. If the loan was arranged through the dealer and you weren’t made aware of commissions or interest structures, you may be eligible.
Undisclosed commissions can lead to inflated interest rates. If you weren’t told about this, you may have been mis-sold and could reclaim compensation.
If your lender doesn’t resolve your complaint within eight weeks or you’re unhappy with their response, you can escalate it to the Ombudsman.
Yes, reclaiming car finance applies to both new and used vehicles if the finance was mis-sold through unclear terms or hidden commissions.
Filing a claim shouldn’t affect your account or future access to finance, as long as your complaint is legitimate and based on fair grounds.
Yes, owning the car is not required. You can still reclaim finance if the agreement was mis-sold, even if you’ve sold or returned the car.
When using a regulated, no-win, no-fee provider, financial risk is minimal. Just be sure to review any terms before proceeding.
You can start by filling out a quick online form. A soft credit check is used to find your agreements, and the claim process is handled for you.
In most cases, you can claim within six years of the agreement, or within three years of becoming aware it may have been mis-sold.
Yes — if you were mis-sold, you could receive thousands in compensation. With no upfront cost, it’s worth checking your eligibility.