If you are among those affected, understanding the car loan compensation process can help you reclaim what is rightfully yours.
In recent years, thousands of UK drivers have discovered they may be entitled to significant refunds due to potential mis-selling in car finance agreements. Hidden commissions paid to brokers and unclear terms in contracts have led to widespread investigations by the Financial Conduct Authority (FCA).
Your Lawyers is dedicated to guiding clients through these claims with expertise and efficiency.
Car finance mis-selling primarily revolves around two key problems: undisclosed commissions and unclear finance terms. Discretionary Commission Arrangements (DCAs) allowed some lenders to adjust interest rates to boost broker commissions without it being clear to customers, potentially inflating costs by hundreds or even thousands of pounds. Similarly, some agreements failed to clearly explain fees, early settlement charges, or total repayable amounts, leaving borrowers in the dark about the true cost of their loans.
The FCA’s ongoing probe, launched in January 2024, has already prompted major lenders to set aside millions in provisions. As of October 2025, many complaints have been lodged, and average compensation payouts have been potentially estimated at a few hundred or even thousands of pounds per claim.
If your car finance was arranged between 2007 and 2021 through a dealer or broker, you could be eligible—regardless of whether you have fully repaid the loan.
Embarking on the car loan compensation process starts with a simple self-assessment but requires careful navigation to avoid pitfalls. First, gather your documents: the finance agreement, payment statements, and any correspondence with the lender. Check for signs of mis-selling, such as variable interest rates that were not disclosed or excessive early termination fees.
Next, submit a formal claim with is via our online portal and we can initiate a legal case. Lenders usually have a set period of time to respond. If they reject your claim or fail to reply adequately, we can then look at helping you further.
Throughout this car loan compensation process, timelines are crucial. Your Lawyers specialises in handling these complexities, ensuring your paperwork is correctly filed and deadlines are met, maximising your chances of compensation, including interest.
To succeed in your car loan compensation process, consider these expert tips. Document everything meticulously; digital scans of contracts can prevent disputes over legibility. Be wary of claims management firms who are not actually lawyers; opt for transparent legal support with a real law firm like us instead. Additionally, if multiple family members or household vehicles are involved, make sure to bring more claims to streamline the process for all.
Ready to start your car loan compensation process? Contact Your Lawyers today for a free initial consultation. Our experienced team can then review your case at no obligation and fight for the payout you deserve.
Call 0800 634 7575 or visit our website here now to get started—do not delay, as complaint volumes are surging.
Really need to know if you have a PCP Car Finance claim to make?
Use our claim tool above to find out if you are eligble for thousands of pounds in compensation!
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