Car Finance Claim Calculator

Calculate Your Potential Compensation

This calculator estimates potential compensation for mis-sold PCP and HP car finance agreements. Enter your details below to see if you may be entitled to a refund.

Your Estimated Compensation

£0
Important: This calculator provides an estimate only. Actual compensation depends on various factors and should be verified by legal professionals. Results are not guaranteed and should not be used as the basis for legal action.

What is Car Finance Mis-selling?

Car finance mis-selling occurs when dealers or lenders fail to provide transparent information about commission arrangements, interest rates, or agreement terms. The Financial Conduct Authority found that many agreements included hidden commissions that inflated costs for consumers.

Common Types of Mis-selling

  • Hidden Commissions: Dealers received secret payments for arranging higher interest rates
  • Discretionary Commission Arrangements: Interest rates varied based on dealer incentives
  • Lack of Disclosure: Customers weren’t informed about commission structures
  • Unfair Terms: Agreements contained terms that disadvantaged consumers

PCP vs HP Claims

Aspect PCP Claims HP Claims
Average Compensation £1,000 – £5,000+ £500 – £3,000
Main Issues Hidden commissions, inflated APR Undisclosed fees, affordability
Complexity Higher (balloon payments involved) Lower (straightforward structure)
Evidence Required GMFV details, commission disclosure Contract terms, fee breakdown

How to Make a Claim

  1. Gather Documents: Collect your original finance agreement and any correspondence
  2. Contact Your Lender: Submit a formal complaint directly to the finance company
  3. Wait for Response: Lenders have 8 weeks to provide a final response
  4. Financial Ombudsman: If unsatisfied, escalate to the Financial Ombudsman Service
  5. Legal Advice: Consider professional legal advice for complex cases

What You’ll Need

  • Original finance agreement documents
  • Payment records and bank statements
  • Any correspondence with dealer or lender
  • Evidence of interest rates offered

Recent Developments

The Financial Conduct Authority has confirmed plans for a formal compensation scheme following the Supreme Court ruling in July 2025. Key points include:

  • Scheme consultation expected by October 2025
  • Compensation payments to begin in 2026
  • Up to 14 million drivers potentially affected
  • Average payouts estimated at less than £950 per agreement
  • Total scheme cost projected between £9-18 billion

Frequently Asked Questions

Am I eligible if my agreement started after 2021?
Generally no. The FCA banned discretionary commission arrangements in January 2021, so agreements after this date are less likely to involve mis-selling.
How long do I have to make a claim?
You have until 29 July 2026 to take complaints to the Financial Ombudsman Service. However, you should start the process as soon as possible.
Do I need to pay upfront fees?
No. You can make complaints directly to lenders for free. Be wary of claims management companies charging upfront fees.
What if my lender has closed down?
Contact the Financial Ombudsman Service directly. They can help trace responsibilities and potential compensation routes.
Can I claim for multiple agreements?
Yes, if you had multiple car finance agreements that were potentially mis-sold, you can claim for each one separately.

Next Steps

If your calculator result suggests potential compensation, consider taking these actions:

  1. Document Everything: Gather all relevant paperwork before making contact
  2. Start With Your Lender: Contact them directly with a formal complaint
  3. Keep Records: Save all correspondence and note dates of conversations
  4. Be Patient: The process can take several months, especially with current backlogs
  5. Seek Advice: Consider free guidance from MoneyHelper or Citizens Advice
Remember: This calculator provides estimates based on typical scenarios. Individual circumstances vary, and actual compensation amounts depend on specific agreement terms, evidence available, and regulatory decisions.

References

  1. Financial Conduct Authority. (2025). “Car finance claims.” Available at: https://www.fca.org.uk/consumers/car-finance-complaints
  2. Financial Ombudsman Service. (2025). “Complaints about car finance commission.” Available at: https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/credit-borrowing-money/car-finance/complaints-about-commission
  3. Bott and Co Solicitors. (2025). “Mis-sold Car Finance Claims Calculator.” Available at: https://www.bottonline.co.uk/mis-sold-car-finance-claims/calculator
  4. National Claims. (2025). “How to calculate Mis-sold Vehicle Finance?” Available at: https://national-claims.co.uk/how-to-calculate-mis-sold-vehicle-finance-in-the-uk/
  5. Scottish Legal. (2025). “FCA unveils compensation plan for car finance mis-selling.” Available at: https://www.scottishlegal.com/articles/fca-unveils-compensation-plan-for-car-finance-mis-selling

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