How to check if your car finance was mis-sold
Step 1 — Work out when you had car finance
The first thing to establish is whether you had a car on finance between 6 April 2007 and 1 November 2024. This is the period covered by the FCA's proposed Consumer Redress Scheme (CP25/27). If you financed a car during this window, there is a chance you were overcharged due to discretionary commission arrangements.
You do not need to remember the exact dates. Even a rough idea of when you had the car is enough to get started.
Step 2 — Understand what type of finance you had
The main types of car finance affected are:
- PCP (Personal Contract Purchase) — the most common type, where you make monthly payments and have the option to buy the car at the end. According to the Finance & Leasing Association, PCP accounts for around 80% of new car finance
- HP (Hire Purchase) — monthly payments with automatic ownership at the end of the term
- Conditional sale — similar to HP but ownership transfers only once all payments are made
All three types could have included discretionary commission arrangements.
Step 3 — Check your agreement
If you still have your original finance agreement, look for information about the interest rate and any mention of commission. However, most people do not keep these documents, and that is perfectly fine.
The lender holds all the records. Under the FCA's proposed redress scheme, lenders will be required to review agreements and calculate any compensation owed. The FCA estimates around 44% of agreements since 2007 may have been affected.
Step 4 — Use a free retrieval tool
The simplest way to find your car finance agreements is to use a retrieval service. Our tool searches for agreements linked to your name and returns results in under 60 seconds.
What you need:
- Your full name
- Date of birth
- Current or previous address
What you do not need:
- The original paperwork
- The name of the lender
- The registration number of the car
Step 5 — Understand your options
Once you know which agreements you had, you have two paths:
- Pursue the claim yourself — you can complain directly to the lender and then escalate to the Financial Ombudsman Service if needed, at no cost. The FOS has published guidance on how they handle car finance commission complaints
- Use a regulated solicitor — a firm like Refund Club handles the process for you, saving time and ensuring nothing is missed
Both routes are valid. The important thing is to act while the information is still accessible. The FCA has confirmed that firms must retain complaint records until 11 April 2031.
What happens next?
If your agreement included a DCA, the lender will be required to calculate how much extra interest you paid and offer redress. The FCA has indicated average compensation of around £700 per agreement, with an estimated 14 million deals potentially in scope.
The complaint handling pause is set to lift on 31 May 2026, after which firms must begin processing complaints.
The process has no impact on your credit score and you are under no obligation to proceed once you have your results.
Sources:
- FCA Consultation Paper CP25/27 — Motor finance consumer redress scheme (October 2025)
- FCA consumer guidance — Car finance complaints
- FCA statement — Pause on motor finance complaints handling to lift 31 May 2026
- Finance & Leasing Association — Motor finance research
- Financial Ombudsman Service — Car finance commission complaints
- Financial Ombudsman Service — Update on car finance commission complaints