If you took out a vehicle finance agreement between 6 April 2007 and 1 November 2024, you could be eligible for compensation. Check your eligibility in minutes.
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Overview
Millions of people are owed compensation after being overcharged on vehicle finance agreements.
When people took out vehicle finance, the lender sometimes paid the dealer or broker a commission for arranging the agreement. It is alleged that, in some cases, these commission arrangements resulted in customers paying more than they should have.
The Financial Conduct Authority (FCA) has since banned some of these commission arrangements and has announced plans for a compensation scheme to repay eligible consumers.
If you took out vehicle finance between 6 April 2007 and 1 November 2024 – whether for a car, van, motorbike, caravan or another motor vehicle – you could be eligible for compensation.
The FCA compensation scheme is free to use, so you don’t need a solicitor to make a claim.
However, some people choose to get independent legal advice. A solicitor may be able to review your finance agreement, gather evidence and deal with the lender on your behalf.
We’re working with a trusted UK law firm that can assess your circumstances, explain your options and, if appropriate, help you pursue your claim.
Many people may not realise they were affected because commission arrangements weren’t always clearly explained. That’s why it’s worth checking whether you could be eligible.
At a glance – PCP claims
Claim Status
Open
Total claim value
£9.1 billion (est.)
Potential claimants
Millions of UK drivers.
You may be eligible to make a claim if:
You may still be eligible even if the agreement has ended or you no longer own the vehicle.
Answer a few quick questions to see if you could qualify to join the claim. It only takes a few minutes and helps confirm if you may be eligible.
We’ll show you which regulated UK law firm will handle your claim before any details are shared, so you can review their information and decide if you’d like to continue.
If eligible, we’ll connect you with a regulated UK law firm who will investigate and pursue your claim.
July 2026
The FCA launches a £2 million nationwide campaign across TV, radio, print, billboards and social media to encourage eligible consumers to make a complaint directly to their lender without legal support. However, the compensation scheme remains partially suspended while legal challenges are ongoing. Even if the FCA successfully defends the scheme, compensation payments are unlikely to begin until at least mid-2027.
June 2026
The FCA confirmed that its motor finance compensation scheme is facing legal challenges from both lenders and consumer groups. The regulator warned that the court proceedings could delay compensation payments and said it would defend the scheme as the fairest way to compensate affected consumers.
March 2026
The FCA announced its final motor finance redress scheme. Under the scheme, lenders must identify affected customers and pay compensation directly, rather than waiting for consumers to make a claim. The regulator estimates that millions of agreements could be affected.
August 2025
The Supreme Court handed down its long-awaited judgment on motor finance commission claims. While the Court rejected some of the broader claims against lenders, it confirmed that excessive and poorly disclosed commissions could still create an unfair relationship between lender and customer.
The ruling narrowed some potential claims but did not end the scandal. Following the judgment, the FCA expanded its proposed redress scheme beyond discretionary commission arrangements (DCAs) to include certain other commission models and potentially unfair sales practices.
October 2024
The Court of Appeal ruled that motor finance brokers could not lawfully receive commission from lenders without a customer's informed consent. The judgment significantly increased the potential scale of compensation claims and prompted a series of appeals that ultimately reached the Supreme Court.
August 2024
The FCA pushed back the outcome of its investigation into hidden, unfair car finance commission until May 2025 (originally due September 2024).
January 2024
The FCA launched an investigation into discretionary commission arrangements (DCAs) in the motor finance market. The regulator began examining whether consumers had been charged unfairly because dealers could increase interest rates to earn higher commission payments.
July 2021
New rules came into effect, prohibiting discretionary commission models in the car finance market. From this date, brokers (including car dealers) could no longer adjust interest rates based on the commission they would receive.
July 2020
The FCA published a policy statement confirming the ban of discretionary commission models. This was aimed at preventing brokers from increasing interest rates to earn more commission, ensuring fairer costs for consumers.
October 2019
The FCA consulted on plans to ban commission models that gave motor finance brokers (including motor dealers) an incentive to raise customers’ finance
costs.
We’ll provide more updates on the mis-sold car finance claim as they occur.
Check your eligibility and find out if you could make a no-win, no-fee mis-sold car finance claim with our trusted law firm partner.
Millions of car finance agreements are under scrutiny because of the way commission was paid to dealers and brokers.
In some cases, dealers could earn more commission by charging customers higher interest rates. These arrangements, known as Discretionary Commission Arrangements (DCAs), were banned by the Financial Conduct Authority (FCA) in 2021.
The FCA’s compensation scheme also covers some other types of commission arrangements and sales practices that may have left consumers paying more than they should have. If you took out car finance between 6 April 2007 and 1 November 2024, you could be eligible for compensation.
No. If you used finance to buy another type of motor vehicle, such as a van, motorbike, caravan or motorhome, you could also be eligible for compensation. What matters is the finance agreement and whether unfair commission arrangements were involved.
Yes. The FCA’s motor finance compensation scheme is currently facing legal challenges from both lenders and consumer groups. Some lenders argue that the scheme goes too far and imposes unfair costs on the industry. Meanwhile, some consumer groups believe the level of compensation proposed by the FCA is too low and does not fully reflect the losses suffered by affected customers.
The FCA has said it will defend the scheme and continues to believe it is the fairest and most efficient way to compensate consumers. However, the compensation scheme remains partially suspended while legal challenges are ongoing. Even if the FCA successfully defends the scheme, compensation payments are unlikely to begin until at least mid-2027.
You could be eligible if you took out a vehicle finance agreement between 6 April 2007 and 1 November 2024. Complete our quick eligibility check and, if appropriate, we’ll connect you with a trusted UK law firm that can review your circumstances and explain your options.
Compensation will depend on the type of finance agreement, the commission involved and your individual circumstances. The FCA’s compensation scheme is expected to refund affected consumers for losses linked to unfair commission arrangements, together with interest. However, the amount each person receives will vary and no compensation amount can be guaranteed.
Not necessarily. Under the FCA’s compensation scheme, lenders are expected to identify affected customers and contact them directly. However, some people choose to seek independent legal advice to better understand their options or to review whether they have been offered fair compensation.
Yes. The age of the vehicle does not usually matter. What matters is whether the finance agreement included commission arrangements that may have caused you to pay more than you should have.
Generally, no. Most car finance claims relate to regulated vehicle finance agreements such as Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements. If you paid for the vehicle using a standard personal loan arranged separately from the dealership, you are unlikely to qualify.
The FCA compensation scheme is free to use. If you choose to use a solicitor, the costs will depend on the law firm and the funding arrangement offered. We only work with trusted law firms that will explain any fees and charges before you decide whether to proceed.
No. The FCA compensation scheme is free to use and many consumers may receive compensation without needing legal representation.
However, some people choose to seek independent legal advice, particularly where agreements are complex, paperwork is missing, multiple finance agreements are involved, or there are questions about eligibility or compensation.
We connect consumers with their legal dream teams to ensure they get the compensation and support they deserve.
Join the Claim is not a law firm. We connect individuals with top law firms for group or individual claims, and our service is free to use. While we may receive a fee from the law firms we introduce you to, this will not affect your costs or compensation. We are not responsible for the advice or services provided by these firms. Please note, nothing on this website is legal advice, and while we check claim eligibility, we cannot guarantee a law firm will accept a case.
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