MIS-SOLD CAR FINANCE FAQ's

You would choose to instruct a law firm because:

• ⚫ We take care of the complaint process for you, so you do not have to;
• ⚫ We can help identify agreements that you may no longer have;
• ⚫ We can help identify your lender(s), who you may have forgotten, or who trade under a new name;
• ⚫ We are in a position to insist on full disclosure from your lender(s) of commissions charged and paid:
  • - not just commissions associated with the individual agreement, but arrangements between dealers and lenders for the prepayment of commissions and volume commissions;
  • - and if your lender claims not to have records, we can cross-check with disclosure from other clients’ cases from a similar period in order to argue what your commission type and level is likely to have been;
• ⚫ We are also in a position to check up on other respects in which the arrangements were unfair:
  • - was your lending unsuitable to your circumstances because of being unaffordable?; and
  • - were there other features in the contract, such as the addition of insurance products such as GAP insurance, alloy wheel insurance and paint insurance which:
    • - made your lending more expensive; and
    • - may give rise to claims against dealerships for commissions paid to them by insurers; and
• ⚫ This is a complex area. Previous cases have involved multiple appeals and whilst the FCA is currently consulting on a consumer redress scheme, its rhetoric suggests that the scheme will centre on alleged ‘unfairness’ to customers. We can help clients to frame their claim in the right way so that the correct arguments are raised for their circumstances and so as to ensure that they receive the right level of compensation; and
• ⚫ We can advise whether clients may achieve higher levels of compensation through the Courts.

However, you do not need to use a claims management company or law firm to make a claim for mis-sold car finance. You can make a claim yourself for free by contacting your lender or by using a free complaints service such as Resolver. Under the proposed redress scheme, the FCA has said that lenders will be writing to affected claimants within 6 months and asking whether they wish to ‘opt-in’ to the scheme. There is a possibility, though, that you may not receive correspondence from your lender.

In its online statements, the FCA has previously indicated that in order to make a claim yourself you will need to check to see if you can find a copy of your finance agreements. If that is the case, in order to make a claim yourself, you will need to follow the FCA’s guidance having first checked to see if you can find a copy of your finance agreements, looked through old bank statements, asked the dealer from which you purchased the vehicle for details, or, if the agreement was within the last 6 years, you checked your own credit file.

You may have been mis-sold car finance if:

• ⚫ your interest rate was higher than necessary; or
• ⚫ the dealer or broker earned a commission but did not disclose it to you.

We will do a soft credit check to identify if you've taken out a PCP / HP agreement since 2007.

If we find any agreements, we will then check with your lender(s) to see if any unfair commission was added. If it was, you'll likely be entitled to compensation.

We handle claims for mis-sold car finance against:

Ald Automotive, Alphera, Audi, Bank of Scotland, Barclays Partner Finance, Bentley, Blackhorse, Blue Motor, BMW, CA Auto Finance, Citroën, Clydesdale, Close Brothers, Creation Consumer Finance, Dacia, FCA Automotive, FCE Bank (Ford Credit), Fiat, GMAC, Halifax, Hitachi, Honda, Hyundai, Jaguar, JBR, Jeep, Kia, Land Rover, Lexus, Mazda, Mercedes, MG, Mini, Mitsubishi, Mobilize, MotoNovo, NIIB Group, Nissan, Novuna, Peugeot, Porsche, PSA, RCI, Renault, Santander Consumer Finance, SEAT, Shawbrook, Shogun, Skoda, Startline, Stellantis, Suzuki, Toyota, Vauxhall, Volkswagen, Volvo

If you choose Restitute to take on your case, Harcus Parker will provide regular updates to you on the progress of your claim.

We'll also drop timely updates at key stages in the claims process via email/SMS.

Whether you're entitled to compensation will depend on the facts of the particular agreement, such as the amount borrowed, the rate of interest charged, the commissions paid and the level of compensatory interest that may be due from the date of the end of the agreement.

If, after lodging your complaint with your lender(s), they agree you are entitled to compensation, we expect payments to begin in 2026.

Right now:

• ⚫ The FCA has announced that they are consulting on a consumer redress scheme. Consultation closes on the proposed scheme on 18 November 2025.
• ⚫ The pause for lenders to begin issuing final responses to complaints lifts in December 2025.
• If the FCA announces a redress scheme, that will be in place in 2026.

We'll keep you updated on any changes!

No, you don't need your original car finance paperwork to make a PCP / HP claim.

• ⚫ We can run a soft credit check to find the name of your lender and your agreement number.
• ⚫ This won't affect your credit score and allows us to track down the details needed for your claim.

So even if you've lost your paperwork, you can still check if you're owed money!

There is currently no time limit for making a complaint about your motor finance agreement and lenders do not have to respond to your complaint while a pause is in place and the FCA consults on a redress scheme. It is likely that a cut-off of 12 months will be imposed once the scheme is in place.

• ⚫ While PCP finance deals became more common from 2009/2010, claims may still apply to agreements after 1 May 2007.
• ⚫ Even if your finance deal was several years ago, you may still be eligible for compensation.

If you're unsure, it's worth checking—there's no harm in seeing if you're owed money!

Yes — it is important for us to stress that you can make a car finance claim yourself by using free template letters available from trusted sites like Resolver and MoneySavingExpert or on the FCA website. The FCA has said in its consultation that if you are in the eligibility criteria, your lender will be required to contact you and inform you whether you wish to ‘opt-in’ to the redress scheme within 6 months of its commencement. You may, however, never receive a letter from your lender.

If that is the case, in order to make a claim yourself, you will need to follow the FCA’s guidance having first checked to see if you can find a copy of your finance agreements, looked through old bank statements, asked the dealer from which you purchased the vehicle for details, or, if the agreement was within the last 6 years, you checked your own credit file.

You may therefore see the benefit of making a complaint sooner rather than later.