About Vehicle Finance Claims

Vehicle Finance Claims

Between 2007 and January 2021, lenders allowed brokers and car dealers to vary the rate of interest customers were charged on the finance they took out to buy their car. Consumers had no idea that the interest they were charged was entirely at the discretion of the sales person that day.

This highly unfair practice was banned in January 2021 but the FCA estimate that 95% of car finance included an element of commission and that 40% of those were rates set at the discretion of the seller, which means there is a chance you could have been affected.

Additionally, loans taken between January 2021 and November 2024 may include undisclosed commission that could be deemed excessive.  A court case recently ruled on a claim like this and awarded compensation to the affected customer setting a precedent for other claimants.

While the FCA put a temporary complaints handling pause in place until a consultation outcome was being reached, this pause lifts on May 31st. Customers with claims already with the lender should start to receive updates and outcomes from the 30th June onward, however we don’t expect this process to be quick. The important thing is your claim in the queue and will be addressed.

Please note: You do not need to use a Claims Management company, you can can complain directly to the lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.

Industry News

New FCA Timeline

After receiving the outcome of the Supreme Court and High Court judgement, the FCA had the legal clarity needed to begin work on prescribing how lenders should deal with vehicle finance complaints to ensure all customers are treated fairly. As this is not a quick process, they extend the pause on the processing of complaints until 31st May 2026.

For more information on this from the FCA: Click Here

What Happens Next?

1

Your claim has been submitted. If the lender has trouble locating with you or needs additional information we will be in touch.

2

Lenders are bound by the FCA to start processing complaints as of the 31st May 2026. The lender should confirm if you were affected, and if you were how much you are to receive in compensation.

3

As soon as we receive an update on your complaint, we will be in touch to help facilitate your claim to fruition. If you hear directly from your lender, then please let us know.