Had a Car on Finance Between 2007 and 2024? You Could Be Owed Money

If you bought a car on finance between 2007 and 2024, there's a chance you paid more than you should have, and it wasn't your fault.

For years, many car dealers were allowed to set the interest rate on your finance deal themselves. Under what's called a Discretionary Commission Arrangement (DCA), the higher the rate they charged you, the bigger the commission they earned from the lender. Often, customers were never told.

The FCA estimates around 40% of car finance agreements involved these arrangements.

The Financial Conduct Authority (FCA) has introduced a consumer redress scheme so affected customers can be compensated. It estimates the average claim could be worth around £829 per agreement, and many people have had more than one car on finance over the years.

What types of finance are included?

Most claims relate to Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements. Conditional Sale agreements may also qualify, and in some cases other vehicle finance deals. Traditional lease or rental agreements are generally not included.

Where things stand now

The redress scheme has been delayed by legal challenges, but the FCA has advised lenders to be ready to respond to complaints from mid-November 2026. You can still check your agreements and submit a complaint now.

You don't have to use a claims company

Could you qualify?

• You had a car, van or motorbike on finance (PCP, HP or Conditional Sale)
• The agreement was taken out between 2007 and 2024
• You're a UK resident

If that sounds like you, it takes about a minute to check.