Vehicle financing has become a hot topic in the UK, especially with the ongoing car finance mis-selling scandal making headlines. If you’ve ever bought a car, van, or motorcycle on finance, you might be wondering:
Can I make a claim? Are all types of vehicle financing eligible?
Let’s break it down in simple terms, explore how much compensation you could claim, and guide you through the process. Plus, we’ll show you how National Claims can connect you with expert solicitors to help you get started.
What’s Happening with Vehicle Financing Claims?
First off, the fuss is all about hidden commissions. For years, dealers and lenders didn’t tell customers they were earning extra money (commissions) when arranging finance deals. A big ruling by the Court of Appeal in October 2024 said this was unlawful if customers weren’t told about it. Now, the Supreme Court is set to decide the final outcome in 2025, and it could mean billions in payouts for drivers.
The Financial Conduct Authority (FCA) is also investigating. They’re looking at deals made before 28 January 2021, when new rules banned these sneaky commissions. So, if you financed a vehicle before then, you might be eligible to claim.
Which Types of Vehicle Financing Are Eligible?
Not all finance deals qualify, so let’s clear this up:
- Personal Contract Purchase (PCP)
This is the big one. Most new cars are bought using PCP – you pay a deposit, monthly payments, and then decide at the end whether to keep, return, or swap the vehicle. If your PCP deal had hidden commissions, you could claim. - Hire Purchase (HP)
With HP, you borrow the full cost of the vehicle and pay it off over time. Once it’s paid, the vehicle is yours. Like PCP, HP deals before 2021 could be eligible if commissions weren’t disclosed. - Personal Contract Hire (PCH) – Leasing
Here’s where it gets tricky. PCH, often called leasing, isn’t included in the FCA’s investigation. It’s more like renting a vehicle, and you don’t own it at the end. So, these deals usually don’t qualify. - Business Use vs Personal Use
The vehicle must have been mainly for personal use. If it was mostly for business (like a company car), you’re unlikely to be eligible.
In short, PCP and HP deals for personal use before 28 January 2021 are the main focus. If you’re unsure about your deal, don’t worry – National Claims can help you figure it out.
How Much Compensation Can You Claim?
Now, the million-pound question: How much could you get? It depends on your deal, but here’s the gist:
- Average Payouts: Experts like Martin Lewis suggest the average compensation could be around £1,100 per claim. Some estimates go higher, up to £1,400 or more, depending on the loan size and interest paid.
- Big Loans, Bigger Payouts: If you financed a pricey vehicle with high interest, your claim could reach thousands. Industry estimates say total payouts might hit £10-£44 billion across the UK.
- What You’re Claiming: Compensation covers the extra interest you paid due to hidden commissions, plus interest on that amount (often calculated at 8%).
For example, if you paid £200 extra in interest because of a secret commission, you might get that back, plus a bit more. The FCA is still working out the details, so these are rough figures for now.
How Do You Know If You’re Eligible?
Wondering if you can claim? Here’s a quick checklist:
- Did you finance a vehicle (car, van, or motorcycle) before 28 January 2021?
- Was it a PCP or HP deal?
- Was it mainly for personal use?
- Were you not told about commissions by the dealer or lender?
If you’re nodding yes, you might have a case. Even if you’ve paid off the loan or sold the vehicle, you can still claim. The key is acting before any deadlines – the FCA has given lenders until 4 December 2025 to respond to complaints.
What’s Next for Vehicle Financing Claims?
The Supreme Court’s ruling in 2025 will be a game-changer. If it upholds the Court of Appeal’s decision, millions could get payouts automatically through an FCA redress scheme. That means lenders might contact you directly – no need for claims firms that take a cut.
However, if the ruling goes the other way, banks might dodge a big bill, and claims could get trickier. Either way, starting your claim now keeps you in the game. The government’s even stepped in, with Chancellor Rachel Reeves warning about economic fallout, but the FCA’s pushing ahead.
Mis-sold Car Finance Claims Checker
Our mis-sold car finance claims calculator below estimates the level of compensation you may be able to reclaim for a mis-sold car finance agreement.
Add the value of your vehicle, the length of your agreement, and the interest rate you paid to the calculator below. Then, compare this against a rate that you may have been offered if you weren’t mis-sold.
Disclaimer : The Mis-sold Car Finance Claims calculation is illustrative, and under no circumstances should it be used or relied upon in the pursuit of a claim. If you need more help and clear understanding.
*Please note: The PCP agreement covers the period from April 2007 to 28th January 2021.*
Why This Matters
This isn’t just about money – it’s about fairness. Millions of drivers were overcharged without knowing. As the BBC News reported on 29 March 2025, this could be one of the biggest payouts since the PPI scandal. Plus, with the cost of living biting, a few hundred quid back in your pocket could make a difference.
For official info, check the FCA’s page on motor finance complaints. It’s got the latest updates straight from the source.
Frequently Asked Questions
Q1: Can I claim if I still owe money on my finance deal?
A: Yes, you can still claim, even if you’re mid-payment.
Q2: What if I don’t remember my lender?
A: National Claims can help track them down with basic details like your vehicle reg number.
Q3: Will it cost me to claim?
A: Not if you do it yourself or use National Claims’ solicitor network. Avoid “no win, no fee” firms that take a chunk of your payout.
Q4: How long will it take?
A: Lenders have until December 2025 to respond, but an FCA scheme might speed things up.
Q5: Can I claim for a leased vehicle?
A: Usually no – PCH (leasing) isn’t covered by this investigation.
Ready to Claim?
If you think you’re eligible, don’t wait. The clock’s ticking, and you deserve what’s yours. National Claims will help you get in touch with experienced solicitors who’ll fight your corner. Whether it’s £500 or £5,000, it’s money you didn’t know you were owed.
Contact National Claims today, and we will put you in touch with an expert solicitor who can guide you through the claims process.📞 Call us now free 0800 029 3849 or 📩 Submit an online enquiry to speak to our team. Your safety and well-being matter, and we’re here to help.
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