If you bought a car on finance between 2007 and 2024, you could be eligible to claim compensation. Here's everything you need to know about car finance claims. For more detailed information, see our comprehensive car finance compensation guide.
What Are Car Finance Claims?
Car Finance Claims
Claims for compensation relating to hidden commission arrangements where car dealers and brokers earned money from your finance agreement without properly disclosing it to you.
Car finance claims relate to hidden commission arrangements where car dealers and brokers earned money from your finance agreement without properly disclosing it to you.
Between 2007 and 2024, many car finance agreements included Discretionary Commission Arrangements (DCAs) that allowed brokers to increase your interest rate to earn higher commission—creating a clear conflict of interest.
Why Are People Claiming?
The Core Issues
The Financial Conduct Authority (FCA) found widespread issues with how car finance was sold. Dealers were incentivized to charge you more, not get you the best deal - and most customers had no idea this was happening.
The Financial Conduct Authority (FCA) found widespread issues with how car finance was sold, including:
- Hidden Commission: Dealers received commission without disclosing it to customers
- Inflated Interest Rates: DCAs allowed brokers to increase rates for higher commission
- Lack of Disclosure: Consumers weren't informed about commission structures
- Conflict of Interest: Brokers were incentivized to charge you more, not get you the best deal
How Many People Are Affected?
According to the FCA, up to 14 million UK consumers who purchased vehicles using finance between 2007 and 2024 may have been affected. This represents one of the largest consumer redress cases in UK history.
Important Deadline
The FCA redress scheme launches in May 2026. Getting your claim in early helps ensure you're at the front of the queue when systematic processing begins. Read our FCA redress scheme guide for complete details.
The FCA Redress Scheme
The FCA has proposed an industry-wide redress scheme launching in May 2026. This scheme will:
- Establish a presumption of harm for inadequate disclosure
- Set out clear methodologies for calculating compensation
- Require lenders to process claims systematically
- Provide consumers with clear routes to compensation
What Can You Claim For?
There are two main types of car finance claims:
1. DCA Claims (Discretionary Commission Arrangements)
What Are DCAs?
These claims relate to arrangements where your broker could increase your interest rate to earn higher commission. DCAs were banned by the FCA in January 2021 - but if you had finance before then, you may be owed compensation. Learn more about understanding DCAs. If you had a PCP agreement, check our PCP claims guide.
2. Irresponsible Lending Claims
Affordability Issues
These claims relate to situations where you were sold finance without proper affordability checks, or where the lender should have known the finance was unaffordable for you.
Not Sure Which Type of Claim Applies to You?
We'll review your agreements and determine the best approach for your situation. No upfront cost.
Check My EligibilityAm I Eligible?
You May Be Eligible to Claim If:
- Had a car finance agreement between 2007-2024
- Were not informed about commission arrangements
- Were charged an interest rate that may have been inflated
- Were sold finance without proper affordability checks
- Had any type of car finance (PCP, HP, lease, etc.)
Next Steps
If you had car finance between 2007-2024, it's worth checking if you're eligible to claim. The process is straightforward:
Our Simple Process
Getting your claim in early helps ensure you're at the front of the queue when the redress scheme launches in May 2026.
Important Information
Your Rights and Our Service
Your Rights: You don't need to use a claims management company. You can submit claims yourself for free to the lender or via the Financial Ombudsman Service.
Our Service: My Claims Centre works on a no win, no fee basis. Our fee is capped at 30% + VAT of any compensation received. You only pay if your claim is successful.
Related Resources
For more detailed information, explore our specialized guides:
- Car Finance Compensation Guide - Complete overview of all claim types
- Understanding DCAs - Deep dive into Discretionary Commission Arrangements
- PCP Claims - Specific guidance on Personal Contract Purchase claims
- FCA Redress Scheme 2026 - Everything about the upcoming scheme
- Black Horse Finance Claims - Claiming against one of the UK's largest lenders
