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A major court ruling could soon unlock compensation for millions of UK drivers—and if you took out car finance at any point in the last 15 or so years, you could be in for a payout.
A new poll conducted for consumer law firm Slater & Gordon suggests that as many as 23 million UK adults may believe they’re owed compensation for a mis-sold car loan. The survey found that 45% of the 4,000 respondents felt they might be eligible for a payout—an estimate that, when applied to the full UK adult population, paints a staggering picture of the potential scale of this financial scandal.
The findings come just ahead of a landmark Supreme Court ruling, expected this month. Depending on the outcome, it could trigger one of the largest consumer redress schemes since the PPI scandal.
What’s This All About?
Since 2007, millions of drivers have took out car finance agreements—particularly Personal Contract Purchase (PCP) deals—through different brokers and dealerships scattered across Britain. Many of these deals involved undisclosed commissions paid by lenders to dealers, giving them a financial incentive to charge punters higher interest rates without ever disclosing those costs.
A Court of Appeal judgment in October 2023 declared this type of secret commission arrangement unlawful, vastly expanding the scope of the FCA’s investigation. As a result, major lenders like Santander UK, Barclays, Lloyds, and Close Brothers could be facing up to £44 billion in liabilities.
What the Survey Found
The poll of 4,000 UK adults—commissioned by Slater & Gordon—found:
⚫ 45% reckon they may be entitled to compensation
⚫ 40% say they’d consider legal action if dissatisfied with the outcome
⚫ Widespread distrust in lenders to fairly assess and distribute compensation
⚫ Concerns that data deletion by banks could block valid claims
What Happens Next?
The FCA is designing a redress scheme that would require lenders to assess whether car loans were mis-sold. However, the public’s expectations are high—and a flawed rollout could lead to backlash and legal challenges.
Elizabeth Comley, COO at Slater & Gordon, summed it up:
“The FCA is trying to put things right, but there’s a risk that a redress scheme leaves many people disappointed and keen to challenge the process. That sort of backlash would be bad for everyone—the scandal would drag on for years, the courts would be inundated with challenges and the public would be denied the clear resolution they want.”
What You Can Do Right Now
Even though the scheme is still in development, you don’t have to wait to get your claim in. At Restitute, we help you:
✅ Submit a free claim with no hidden fees
✅ Use smart tools to investigate, even without full paperwork
✅ Check whether your car finance deal was mis-soldYou can also claim yourself without paying fees. Check out this article on the MoneySavingExpert website for full guidance and stay informed on all things car finance claims ahead of a huge month of July.
