Are you worried you might have been mis-sold vehicle finance? You’re not alone. Millions of UK drivers have taken out car finance deals, like Personal Contract Purchase (PCP) or Hire Purchase (HP), only to discover they may have paid too much due to hidden fees or unfair terms. The good news? You could be entitled to compensation—and calculating whether you’ve been mis-sold is easier than you think.
In this guide, we’ll walk you through how to spot a mis-sold vehicle finance deal, how to calculate your potential refund, and what steps to take next. Plus, we’ll show you how National Claims can connect you with experienced solicitors to help with your claim. Let’s get started!
What Does “Mis-Sold Vehicle Finance” Mean?
Before we dive into calculations, let’s clarify what mis-selling means. In the UK, vehicle finance is often mis-sold when dealers or lenders fail to be transparent. This could include:
- Hidden Commissions: Dealers getting paid secret commissions for setting high interest rates.
- Unfair Interest Rates: Charging you more than necessary without explaining why.
- Lack of Consent: Not telling you about fees or commissions tied to your deal.
The Financial Conduct Authority (FCA) banned discretionary commission arrangements in 2021, but many deals before then could still qualify for compensation. Recent news from the BBC (20 February 2025) reported Lloyds Banking Group setting aside £1.2 billion for potential payouts, showing just how big this issue has become.
How to Calculate Mis-Sold Vehicle Finance
Calculating whether you’ve been mis-sold vehicle finance involves looking at your deal’s details and comparing them to what’s fair. You don’t need to be a maths whiz—tools like the PCP Finance Calculator from National Claims can do the heavy lifting. Here’s how it works, step by step:
Step 1: Gather Your Finance Details
To start, grab your finance agreement or any paperwork from when you bought your car. You’ll need:
- Car Price: The total cost of the vehicle (e.g., £20,000).
- Deposit: How much you paid upfront (e.g., £2,000).
- Loan Term: How many years your agreement lasts (e.g., 4 years).
- Annual Mileage: Your estimated yearly miles (e.g., 10,000).
- Interest Rate (APR): The percentage you were charged (e.g., 10%).
- Balloon Payment: The final payment at the end of a PCP deal (optional—leave blank if unsure).
Don’t have all this info? Contact your lender—they’re legally required to provide it.
Step 2: Use the PCP Finance Calculator
Head to the National Claims website and plug your details into their PCP Finance Calculator (you can scroll to it from their homepage). This handy tool estimates:
- Monthly Payments: What you’ve been paying each month.
- Total Interest Paid: How much extra you’ve paid on top of the car’s price.
- Potential Refund: An estimate of what you might claim back if mis-sold.
For example, let’s say you bought a £20,000 car with a £2,000 deposit, a 4-year term, and a 10% APR. The calculator might show:
- Monthly Payment: £450
- Total Interest Paid: £3,600 over 4 years
- Potential Refund: £1,200 (if the interest was unfairly high).
Step 3: Check for Mis-Selling Red Flags
The calculator also hints at whether your deal was unfair. Look out for:
- High APR: If your interest rate is much higher than the average (say, above 6-7% when 5% was typical), it’s a warning sign.
- Excess Interest: The calculator compares your interest to a “fair” rate (like 5%) to estimate overpayments.
- Hidden Costs: If your total cost seems inflated, commissions might be to blame.
Step 4: Estimate Your Refund
The National Claims calculator assumes a “fair” APR (e.g., 5%) and calculates how much extra interest you paid. It then adds a compensation factor—often 8% of the excess interest per year of your loan. This mimics how the Financial Ombudsman Service (FOS) often awards refunds, according to GOV.UK guidance on financial complaints.
For our £20,000 car example:
- Actual Interest Paid (10% APR): £3,600
- Fair Interest (5% APR): £1,800
- Excess Interest: £1,800
- Compensation (8% x 4 years): £576
- Total Refund: £2,376
This is just an estimate—your real payout depends on your case.
How Much Compensation Can You Claim?
Compensation varies based on your deal’s specifics. The FCA suggests that for a typical £10,000 four-year PCP deal, customers might have overpaid £1,100 in interest due to mis-selling (Telegraph, 20 February 2025). Here’s what you might expect:
- Small Deals (£5,000-£10,000): Refunds of £500-£1,500.
- Mid-Range Deals (£10,000-£20,000): £1,000-£3,000.
- Large Deals (£20,000+): £2,000-£5,000 or more.
The FOS might also award extra compensation if you faced financial distress or if the lender didn’t follow rules. National Claims will help you put in touch with experienced solicitors who can assess your exact claim amount—free of charge initially.
PCP Finance Calculator
Your PCP Finance Results
Why This Matters Now
The car finance scandal is heating up. A Court of Appeal ruling in October 2024 made it illegal for dealers to take commissions without your informed consent, opening the door to billions in payouts (The Guardian, 12 February 2025). The FCA is investigating, and banks like Barclays (£90m) and Santander (£295m) are bracing for claims.
If your deal was before 28 January 2021, you could be eligible. Around 80% of new UK cars are bought on finance (GOV.UK transport statistics), meaning millions might be affected. Don’t wait—the FCA could set a deadline for complaints soon.
How to Start Your Claim
Ready to see if you’re owed money? Here’s what to do:
- Check Eligibility: Was your deal a PCP or HP agreement before January 2021? Did it feel unclear or expensive?
- Calculate Your Loss: Use the National Claims PCP Finance Calculator to get a rough idea.
- Complain to Your Lender: Write to them with your concerns—GOV.UK has a template for financial complaints (search “complain about a financial service”).
- Escalate if Needed: If they reject you, take it to the Financial Ombudsman Service within six months—it’s free.
- Get Expert Help: National Claims will help you put in touch with experienced solicitors who specialise in mis-sold finance claims. They’ll guide you through the process, often on a no-win, no-fee basis.
Why Choose National Claims?
When it comes to tackling financial disputes, you need a team you can trust. National Claims stands out as a reliable partner for anyone in the UK looking to reclaim what’s rightfully theirs. Here’s why they’re the go-to choice for thousands:
- Proven Track Record: National Claims has successfully supported countless customers in navigating complex claims, helping them secure the compensation they deserve. Their experience speaks for itself.
- Expert Support: They connect you with seasoned professionals who know the ins and outs of UK financial regulations. You won’t be left figuring things out alone.
- Hassle-Free Process: Claims can feel daunting, but National Claims makes it simple. They guide you every step of the way, cutting through the jargon and red tape.
- Customer-Focused: Real people, real results. Clients rave about their straightforward approach: “They made it so easy—I got my money back without the stress!” says one happy customer.
- No Upfront Costs: Worried about fees? National Claims often works with solicitors on a no-win, no-fee basis, so you can start your claim without risking a penny.
Whether you’re dealing with unfair charges, hidden fees, or mis-sold products, National Claims is committed to fighting your corner. They’re not just about promises—they deliver results. Ready to take action? With National Claims by your side, you’re in safe hands.
Final Thoughts
Mis-sold vehicle finance isn’t just a headline—it’s a chance to reclaim what’s yours. By using tools like the National Claims PCP Finance Calculator, you can quickly see if you’ve been overcharged and estimate your refund. With banks setting aside billions and the FCA cracking down, now’s the time to act.
Don’t let hidden commissions or unfair rates cost you more than they should. National Claims will help you put in touch with experienced solicitors who’ll fight for your claim, making the process simple and stress-free. Start today—check your deal, calculate your potential refund, and take the first step towards getting your money back.
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.
Disclaimer: Compensation estimates are based on general trends and your specific case may vary. Contact National Claims for a tailored assessment.
