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Can I make a car finance compensation claim?

Test. Over the last few months, thousands of people in the UK have made claims for being mis-sold car finance agreements. In this article, we discuss why this is, and if it could be an option for you, too.

  • The Financial Conduct Authority has reported thousands of cases of car finance mis-selling.
  • Those who have taken out a car finance agreement between 2011-2019 may be eligible for compensation.

Have you taken our a PCP or HP car finance agreement at some point between 2011-2019? If so, you may be one of thousands in the UK who are now entitled to compensation.

Following an investigation by the Financial Conduct Authority (FCA), it seems many car dealers in the UK have been failing to inform customers on their commission structures. This has resulted in customers unknowingly paying more for their vehicle finance.

The FCA analysed contracts between some of the largest lenders (accounting for around 45% of the motor finance market) and their top dealers, covering the period 2013 to 2016.

They found that some of the commission arrangements provided strong incentives for brokers to arrange finance agreements at higher interest rates, due to the fact that the amount of commission increases with the interest rate that the customer is charged.

In these cases, the broker has discretion to decide upon the interest rate the customer should pay, within parameters set by the lender.

As a result of these issues coming to light, a high number of people in England, Scotland, Wales & Northern Ireland are eligible for making compensation and quickly taking action towards making a claim.

The FCA has since put plans in place to ban commission models that give motor finance brokers (including motor dealers) an incentive to raise customers’ finance costs.

Those who fell into the category of commission arrangements that were considered unfair, are now likely eligible for compensation.

Am I eligible to claim?

To find out if you’re owed compensation, take our quick 30-second quiz below. is an independent platform and information service that aims to provide you with the tools you need to make smarter financial decisions. While we are independent, the offers that appear on this site are provided by companies from which receives compensation, though we never advertise or promote services or companies that we do not ethically support.

You may be able to make a claim if:

  • You took out a PCP or HP car finance agreement between 2011-2019.
  • You were not told about the commission in the contract.
  • A full affordability check was not carried out.
  • The vehicle was faulty or not as described at the time the agreement was made.
Can I Claim?