With billions of pounds potentially owed to UK car finance customers, one question dominates: am I actually eligible? This guide walks you through every criterion, explains what documentation you’ll need, and tells you exactly what to expect from the claims process.
The Core Eligibility Criteria
You are likely eligible to make a car finance mis-selling claim if you meet all of the following conditions:
- You took out a PCP (Personal Contract Purchase) or HP (Hire Purchase) car finance agreement in the UK
- Your agreement was entered into before 28 January 2021
- Your finance was arranged through a dealership (rather than directly through a bank or lender)
- You were a private individual (not purchasing a vehicle solely for business use)
If you tick all four boxes, there is a strong basis for a claim. You do not need to prove you were actively misled — the ruling established that the non-disclosure of the commission arrangement was itself the legal failing.
Could You Be Owed Car Finance Compensation?
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What About Older Agreements?
The FCA’s investigation is currently focused on agreements from April 2007 onwards, which is when the Consumer Credit Act provisions most relevant to these claims took effect. Agreements before this date may still have a basis for complaint under common law, but the position is less clear. If you had a finance agreement before 2007, it is still worth registering your interest — the regulatory position may evolve.
Does It Matter Which Lender I Used?
No — eligibility is not tied to a specific lender. The mis-selling practice was widespread across the industry. Whether your finance was through Black Horse, Santander, MotoNovo, Close Brothers, FirstRand, or any other provider, the same eligibility rules apply. What matters is whether a discretionary commission arrangement was in place at the time your deal was structured.
What If I’ve Already Paid Off My Finance?
Absolutely — you can still claim even if your agreement has ended and the finance is fully settled. In fact, the majority of successful claimants will have agreements that have already concluded. The claim is based on how the deal was structured at the outset, not on whether the agreement is currently active.
What Documentation Do I Need?
Ideally, you should have access to your original finance agreement, which will show your agreement number, lender details, interest rate, and term. However, you do not need to have the paperwork to hand to register a claim. Your lender is legally required to provide you with a copy of your agreement on request, and claims management companies like PCP Tax Rebates can assist with this process.
How Long Does the Process Take?
Currently, lenders have been given an extended window by the FCA to respond to complaints — until at least May 2025, with the possibility of further extension depending on the Supreme Court’s final ruling. This means claims submitted now are in the queue and positioned for redress once the scheme is confirmed. The process itself — from initial submission to potential payout — could take 12 to 18 months in total, though this timeline will become clearer once the FCA publishes its redress framework.
Ready to Check Your Eligibility?
Our eligibility checker takes less than two minutes and asks only a few simple questions about your finance agreement. There’s no cost to check, no obligation to proceed, and no upfront fees at any stage. Start your eligibility check now and find out if you could be entitled to thousands of pounds in compensation.