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 reached, this pause was lifted 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

Updates from the FCA

The FCA have confirmed that a redress scheme will be rolled out to ensure that all those customer who were not treated fairly are compensated. While the details have been released, due to a legal challenge brought against the decision, which the FCA intend to defend ‘robustly,’ the timeline on this has been impacted. If you already have a claim with a lender, it is likely to be November before you receive an update.

While it has always been the case that you don’t have to use a CMC, you don’t have to go it alone either. There are now plenty of other routes available to you to pursue a vehicle finance claim including waiting for the redress scheme to begin. However, the FCA advice is to Act Now as the longer you wait, the longer it will take for your claim to be assessed.

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.