Car Finance Compensation: Do I Need a Claims Company?

You do not need a claims management company or law firm. Their fees can reduce what you receive, and the FCA has set up a taskforce targeting poor handling of claims by some of them. The FCA will never ask for your bank details, PIN or passwords. source

The FCA says a claims management company or law firm may charge you over 30% of any compensation. Do not sign up to several, as you may be charged several fees. If you cancel, any fee must be reasonable and reflect the work done. source

The FCA says to complain to the firm first. If you are not satisfied, use the Claims Management Ombudsman (for FCA-regulated firms) or the Legal Ombudsman (for law firms). source

To find your lender, check old bank statements, contact the dealer, or check your credit file. The FCA says Equifax's Car Finance Checker app includes most records back to 2007, and you can check your credit file free through Experian and TransUnion. Citizens Advice says MoneyHelper also offers a free check. source

The FCA's list of lenders includes contact details, template letters and complaint forms. If the person who took out the finance has died, say you are claiming for someone else and include their name, address, date of birth and finance details. The lender may ask for a will or grant of probate. source

The FCA's motor finance redress scheme covers agreements taken out between 6 April 2007 and 1 November 2024 where the lender paid commission to the broker, usually the dealer. It includes personal contract purchase (PCP) and hire purchase deals for cars, motorbikes, vans and campervans. source

You may get nothing if the commission was £120 or less before 1 April 2014, or £150 or less after, or if you paid no interest. You are also excluded if you leased through Personal Contract Hire, or already had a Financial Ombudsman or court decision or accepted redress. source

The FCA estimates average redress at about £829 per agreement (it says about £830), but amounts vary and some people get nothing. About 90,000 cases receive all the commission plus interest. Interest is simple, at the Bank of England base rate plus 1%, with a 3% minimum. source

On 2 July 2026 the Upper Tribunal suspended parts of the scheme. Until the legal process concludes, lenders do not need to calculate or pay compensation under the scheme. The FCA says the best thing consumers can do is complain to their lender. No timing for the end of the process was given. source

If the scheme is upheld by the court and not appealed, the FCA expects payments to begin in 2027. The legal case is due to be heard in December 2026 or February 2027. source