Worried about losing upto 36% of your car finance compensation to fees? While some firms may deduct high percentages, this figure is often exaggerated and doesn’t apply to every case. With the right legal help, including support from National Claims, you could recover most of your mis-sold car finance compensation — and pay nothing upfront.
If you’ve recently discovered you might be entitled to compensation due to car finance mis-selling, you’ve probably come across a worrying claim: “You’ll lose upto 36% of your payout.” Understandably, that sounds like a huge chunk — especially when the compensation is rightfully yours. But is this statement accurate? Not entirely.
Let’s break down what that figure really means, why it’s misleading, and how you can maximise your car finance claim without unnecessary deductions.
Why Are People Claiming You’ll Lose 36%?
This number usually refers to deduction fees that some claims management companies (CMCs) or solicitors charge for handling your case. It’s important to understand that not every firm charges the same, and the amount you “lose” depends on how you choose to pursue your claim.
In some high-profile news coverage, including Which? and MoneySavingExpert, firms have been criticised for taking up to 30–36% (plus VAT) in fees from successful claims. While this can happen, it’s not the standard for all claims handlers.
? According to the Financial Conduct Authority (FCA), over 500,000 UK consumers may have been mis-sold car finance deals, especially PCP agreements with hidden commission models.
So, yes — fees exist. But losing 36% isn’t the norm, and there are ways to keep more of your compensation in your own pocket.
The Truth Behind Mis-Sold Car Finance Claims
If you bought a car using Personal Contract Purchase (PCP) or Hire Purchase (HP) between 2007 and 2021, there’s a chance your deal involved undisclosed commissions that inflated your interest rate without your knowledge. That’s financial mis-selling — and it’s illegal under FCA rules.
You may be owed compensation for:
- Overpaid interest due to hidden commission
- Unfair lending practices
- Lack of transparency from the lender
But here’s the good news: not all claims are subject to a 36% fee. Reputable firms offer fair, transparent, and capped fee structures — often on a no win, no fee basis. Plus, the actual deduction usually depends on the amount of compensation you receive.
How Much Compensation Can You Claim?
While there’s no fixed amount, compensation for mis-sold car finance can range anywhere from £1,000 to over £10,000, depending on the size of your loan and how long the finance ran.
Here’s a rough idea of what you might be owed:
| Original Loan Amount | Potential Compensation |
|---|---|
| £5,000 | £1,000 – £1,500 |
| £10,000 | £2,000 – £3,000 |
| £15,000+ | £3,000 – £5,000+ |
These figures can vary based on the lender, the interest rate, and whether you were charged a discretionary commission model. According to FCA findings, this model allowed brokers to increase interest rates to boost their commission — without telling the customer.
The FCA banned discretionary commission models in 2021 after finding they caused consumers to pay significantly more than necessary
People Also Ask
1. Do all solicitors take 36% of my compensation?
No. Some firms may charge up to 36%, but many offer lower, capped fees or work on a no win, no fee basis. Always check the fee agreement before proceeding.
2. Can I claim mis-sold car finance on my own?
Yes, you can go directly to your lender or the Financial Ombudsman. However, many people prefer using a solicitor to improve their chances and avoid the hassle.
3. How do I know if I was mis-sold car finance?
If you weren’t told about commissions, were pressured into a deal, or the interest rate wasn’t clearly explained, you may have a valid claim.
4. Is it worth claiming for car finance mis-selling?
Absolutely. Even a small overpayment could lead to thousands in compensation — and many claims are settled with little to no upfront cost.
5. Who can help me make a claim?
Firms like National Claims connect you with experienced solicitors who understand the process and work on a no win, no fee basis.
What Are Reasonable Deductions?
A fair solicitor or claims management firm will clearly outline any fees before you sign anything. In many cases, the following applies:
- No upfront costs
- No win, no fee
- Capped fees, often between 15% and 25% + VAT
- Transparent terms
Before choosing a solicitor or claims firm, read the fine print and ask questions. Don’t be put off by scare stories — with proper guidance, your payout won’t be gobbled up by fees.
Why the 36% Figure Is Misleading
The “36%” figure creates unnecessary fear. It’s usually the maximum deduction allowed under certain CMC regulations, not what everyone pays. Plus, reputable firms often charge far less.
It’s a bit like saying “You’ll lose 50% of your inheritance to tax” — possible in rare cases, but not the norm.
And remember, even with a deduction, you’re still receiving money you wouldn’t have otherwise had.
National Claims Can Help You Keep More
If you’re unsure about where to start or don’t want to deal with lenders and paperwork, National Claims is here to help. We work with a network of experienced UK solicitors who handle your claim professionally and ensure your fee structure is clear and fair.
You’ll get:
- Free initial consultation
- No win, no fee support
- Clear breakdown of what you’ll receive
- Full legal backing to deal with uncooperative lenders
Final Thoughts: Don’t Let Misinformation Cost You Thousands
Hearing that you’ll “lose 36% of your compensation” can understandably put you off claiming. But the truth is, you have options. That figure is often the exception, not the rule — and you’re entitled to claim what’s rightfully yours.
Whether you’ve had a PCP car finance agreement with hidden commission or just suspect you’ve been overcharged, it’s worth checking. The process is simpler than you think — especially with the right legal help.
? Ready to Start Your Claim?
Don’t let fees or fear hold you back. Get in touch with National Claims today to begin your car finance compensation claim. We’ll connect you with expert solicitors who work on a no win, no fee basis — helping you get the justice you deserve, without hidden surprises.
? Click here to start your claim now or contact us for more information.
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