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Car Finance Claims Deadline: When Do You Need to Act?

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One of the most common questions about the car finance mis-selling scandal is whether there is a deadline to claim. The honest answer is: not yet formally — but deadlines are coming, and the earlier you act, the stronger your position.

The FCA Has Extended Complaint Deadlines

In August 2023, the FCA announced that lenders would be given extra time to respond to car finance complaints while it conducted its review. This pause was extended in early 2024 and again following the Court of Appeal ruling in October 2024. Currently, lenders are not required to issue final responses to DCA-related complaints until at least after the Supreme Court delivers its judgment.

When Will a Formal Deadline Be Set?

Once the Supreme Court rules — expected in summer 2025 — the FCA is expected to publish its final redress scheme. That scheme will almost certainly include a deadline by which affected customers must submit their claims. Based on previous financial mis-selling redress schemes such as PPI, this deadline is likely to give customers at least 12 months’ notice, but it is not guaranteed and has not yet been confirmed.

What Is the Limitation Period?

Under general limitation rules, claims based on breach of contract or negligence must typically be brought within six years of the event — or three years from the date you became aware of it, if later. This means very old agreements could potentially fall outside the limitation period, though the FCA’s involvement and the specific legal basis of these claims means the position is more complex than a simple limitation calculation. Registering your claim now protects you from arguments about delay.

Why Acting Now Matters

Every redress scheme in recent memory — from PPI to packaged bank accounts — has had a cut-off date, and customers who missed it received nothing, regardless of how strong their underlying claim was. The car finance scheme will be no different. Registering early ensures you are on record, your agreement details are confirmed, and you are ready to receive your compensation as soon as the scheme opens for payouts.

Do not wait for a formal deadline to be announced. Check your eligibility today and make sure you are not one of the millions who misses out by leaving it too late.

Santander Car Finance Mis-Selling: Are You Owed a Refund?

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Santander Consumer Finance is one of the most significant names in the UK car finance mis-selling investigation. With millions of agreements written through dealerships over the past decade, a large number of Santander customers may be entitled to compensation. Here is what you need to know.

Santander’s Role in the Market

Santander Consumer Finance is a division of Santander UK plc and has been a major provider of dealership-arranged car finance for many years. During the period when discretionary commission arrangements were permitted, Santander — like virtually every other major lender — operated systems that allowed dealers to adjust customer interest rates in exchange for higher commissions.

What Has Santander Said?

Santander has confirmed it is one of the lenders affected by the FCA review and has set aside provisions to cover potential redress. The bank has been actively engaged with the FCA process and has paused the processing of DCA-related complaints in line with regulatory guidance, pending the outcome of the Supreme Court ruling.

Am I Eligible If My Finance Was Through Santander?

The eligibility rules are the same as for any other lender: if you took out a PCP or HP agreement through a dealership that was funded by Santander Consumer Finance before 28 January 2021, you may have a valid claim. The agreement does not need to be active — settled and fully paid off agreements are equally in scope.

What If I Had Multiple Agreements?

If you financed more than one car through Santander during the relevant period, each agreement may be the subject of a separate claim. This is worth noting if you have been a loyal Santander customer across several vehicle purchases.

How Do I Get Started?

The first step is to confirm your eligibility and register your interest before the FCA’s redress scheme deadlines are published. Check whether your Santander agreement qualifies — it only takes a few minutes, and it costs nothing to find out where you stand.

Supreme Court Car Finance Ruling: What It Means for Your PCP Claim in 2025

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The Supreme Court’s landmark ruling on car finance mis-selling has opened the door for millions of UK drivers to claim compensation. If you took out a Personal Contract Purchase (PCP) or hire purchase agreement before January 2021, you could be entitled to a payout — and understanding the ruling is the first step to knowing whether you qualify.

What Did the Supreme Court Actually Rule?

In October 2024, the Court of Appeal ruled — and the Supreme Court subsequently upheld — that car finance lenders had been paying secret commissions to dealers without properly disclosing this to customers. This practice, known as a discretionary commission arrangement (DCA), meant dealers could increase the interest rate on your finance deal to earn a higher commission, at your direct expense.

The ruling confirmed that lenders had a legal duty to disclose these arrangements, and that failing to do so was a breach of fiduciary duty. This is highly significant: it means affected customers were effectively overcharged on their finance deals for years.

Which Lenders Are Affected?

The ruling has implications for virtually every major car finance provider operating in the UK during the relevant period. Lenders including Lloyds Banking Group (Black Horse), Santander, Close Brothers, and many others have already set aside hundreds of millions of pounds in provisions to cover potential payouts. The FCA has estimated total industry redress could exceed £30 billion.

What Are the Key Dates?

To be eligible, your car finance agreement generally needs to have been taken out before 28 January 2021 — the date the FCA banned discretionary commission arrangements. Agreements after this date are unlikely to be affected. There is no strict upper time limit set yet, though the FCA has confirmed it is reviewing the position for older agreements.

How Much Could You Claim?

Payouts will vary depending on the size of your finance agreement and how much interest you were charged over the term. Early estimates suggest the average claim could be worth between £1,000 and £5,000, with larger agreements potentially resulting in significantly higher refunds. The FCA has not yet published a final redress scheme, but is expected to do so following the Supreme Court’s final determination.

What Should You Do Now?

The first step is to check whether you had a PCP or HP agreement before January 2021. If you did, you should consider registering your interest in making a claim before the FCA’s deadline — which is expected to be set once the redress scheme is finalised. Acting promptly ensures your details are on record and you don’t miss out.

At PCP Tax Rebates, we help eligible customers understand their rights and submit claims at no upfront cost. Check your eligibility today — it takes just a few minutes and could result in a significant refund.

Am I Eligible to Claim Car Finance Compensation? Your Complete 2025 Guide

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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.

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.

What Is a Discretionary Commission Arrangement — and Why Does It Matter?

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If you have been following the car finance mis-selling story, you will have heard the phrase discretionary commission arrangement — or DCA — mentioned repeatedly. But what exactly is a DCA, why was it banned, and why does it matter for your potential claim?

The Basic Concept

When you take out car finance through a dealership, the dealer acts as a credit broker. They receive a commission from the lender for arranging the deal. Under a discretionary commission arrangement, the dealer had the power to set the interest rate on your agreement within a range. The higher the rate they set, the more commission they earned — directly at your expense.

Why This Was a Problem

This created a direct conflict of interest. The dealer was supposed to be acting on your behalf, but their financial incentive pointed in the opposite direction. Because customers were never told about this arrangement, there was no way to challenge it or negotiate. You thought you were getting a fair rate; in reality it may have been inflated to boost the dealer’s commission.

When Were DCAs Used?

DCAs were widespread from at least 2007 until 28 January 2021, when the FCA banned them outright. The regulator found clear evidence that they led to customers being charged more than necessary, and that non-disclosure of the arrangement was a breach of legal duty.

Who Was Affected?

The practice was industry-wide. If you took out a PCP or HP agreement through a dealership before January 2021, there is a reasonable likelihood that a DCA was in place. This applies across lenders including Black Horse, Santander, Close Brothers, MotoNovo, and many others.

What Happens Now?

Following the Court of Appeal and Supreme Court rulings, affected customers are entitled to seek redress. Check your eligibility today to find out whether you could be due a refund on the interest you were overcharged.

How Much Car Finance Compensation Could You Actually Receive?

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With billions of pounds potentially owed to UK car finance customers, the obvious question is: how much could I actually get? The honest answer is that it varies — but there are clear factors that determine your payout, and for many people the figure will be meaningful.

The Range of Likely Payouts

Based on industry analysis and early FCA guidance, individual compensation amounts are expected to range from a few hundred pounds to over £5,000 per agreement. The most commonly cited average is in the region of £1,000 to £2,000, though customers with larger or longer-term deals could receive considerably more.

What Factors Affect Your Amount?

The size of your original finance agreement matters — a £25,000 deal will generate a larger absolute overcharge than a £10,000 one. The interest rate you were charged relative to what you should have paid also determines the gap, as does the length of your agreement. The longer the term, the more interest payments were affected.

Will I Also Receive Statutory Interest?

Potentially yes. In many financial mis-selling cases, redress includes 8% statutory interest on the overcharged amount, calculated from the date of each payment. For agreements that are several years old, this could add a significant sum on top of the base figure.

What About Multiple Agreements?

If you took out more than one PCP or HP agreement before January 2021, you may be able to claim on each one separately. If you changed cars every three to four years, your total compensation could be two or three times the per-agreement figure.

When Will Payments Be Made?

Lenders have been given extended time by the FCA to process complaints, and payments are not expected to begin widely until late 2025 at the earliest. That is exactly why registering now matters. Start your eligibility check today to get in the queue before deadlines are set.

The FCA Car Finance Investigation: Timeline and What Happens Next

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The car finance mis-selling saga has unfolded over several years, with multiple regulatory and legal milestones along the way. Understanding the timeline helps you know where things stand — and what to expect next.

January 2021: The FCA Bans DCAs

The Financial Conduct Authority banned discretionary commission arrangements from 28 January 2021, following concerns that they created a direct conflict of interest between dealers and customers. At this stage, the regulator stopped short of ordering redress for historic agreements.

January 2024: The FCA Opens Its Review

The FCA announced a formal review into whether customers who had PCP or HP agreements before the ban were owed compensation. Lenders were told to pause processing of complaints while the review was underway. The FCA also extended the deadline for lenders to respond to existing complaints, giving itself time to determine the right redress framework.

October 2024: The Court of Appeal Ruling

In a landmark judgment, the Court of Appeal ruled that lenders had breached their fiduciary duty by paying secret commissions to dealers without customers’ informed consent. This was a major escalation: it meant the legal basis for redress was far stronger than previously assumed. Lender share prices fell sharply on the day of the ruling.

Early 2025: The Supreme Court Appeal

Several lenders appealed to the Supreme Court, seeking to limit their exposure. The Supreme Court hearing took place in April 2025. Its ruling is expected to provide the definitive legal framework on which the FCA’s redress scheme will be built. A decision is anticipated in summer 2025.

What Comes Next?

Once the Supreme Court rules, the FCA is expected to publish its final redress scheme, setting out exactly how compensation will be calculated and paid. Lenders will then be required to contact affected customers proactively or process claims that have already been registered. This process is likely to play out through 2025 and 2026.

Why Register Now?

Customers who register their claim before the FCA publishes its scheme will be well positioned for swift processing once the framework is in place. Waiting until the scheme is announced risks missing early deadlines or being deprioritised. Check your eligibility now to make sure you are in the queue.

Black Horse Car Finance Claims: Everything You Need to Know

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Black Horse, the car finance arm of Lloyds Banking Group, is one of the most widely used car finance providers in the UK — and one of the lenders most prominently named in relation to the ongoing mis-selling scandal. If your finance was provided by Black Horse, here is everything you need to know.

Who Is Black Horse?

Black Horse is a trading name of Lloyds Bank plc and is one of the largest motor finance providers in the UK, funding millions of car purchases through dealerships over the past two decades. Because of this scale, Black Horse features heavily in the FCA’s investigation into discretionary commission arrangements.

What Has Lloyds Said?

Lloyds Banking Group has set aside over £450 million in provisions to cover potential car finance redress — one of the largest provisions made by any UK bank in relation to this issue. That figure has been revised upwards as the scale of potential liability has become clearer.

Am I Eligible If My Finance Was Through Black Horse?

You are likely eligible if your Black Horse agreement was a PCP or hire purchase deal arranged through a dealership before 28 January 2021. The key test is whether a discretionary commission arrangement was in place — which was standard practice across the industry during this period.

What If My Complaint Was Previously Rejected?

Many customers who complained to Black Horse directly received holding responses or rejections before the Court of Appeal ruling. If your complaint was previously turned down, that decision may need to be revisited in light of the new legal position. You are not prevented from pursuing a fresh claim.

What Should You Do Now?

The most important step is to register your interest before deadlines are set by the FCA. Check if your Black Horse agreement qualifies — it takes just a couple of minutes and could be the first step towards thousands of pounds in compensation.

Do You Need a Claims Company for Your Car Finance Claim, or Can You Do It Yourself?

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One of the most common questions we hear is: do I actually need a claims management company, or can I just complain to my lender directly? The answer depends on your circumstances — and here is an honest look at both routes.

The DIY Route: Complaining Directly to Your Lender

You have the right to complain directly to your lender at no cost. You can write to their complaints department, explain that you believe a discretionary commission arrangement was in place on your agreement, and request redress. If the lender rejects your complaint or fails to respond within eight weeks, you can escalate to the Financial Ombudsman Service — also free of charge.

The DIY route costs you nothing financially. However, it does require your own time to research, write, and follow up on your complaint. It can also be more difficult to navigate if your lender uses technical language or pushes back on your claim.

Using a Claims Management Company

A claims management company (CMC) will handle the process on your behalf — identifying your agreement, drafting your complaint, liaising with lenders, and escalating if needed. This removes the administrative burden from you entirely. In return, a CMC typically charges a fee, usually a percentage of any compensation you receive — commonly between 20% and 36% including VAT. No win, no fee arrangements mean you pay nothing if the claim is unsuccessful.

Which Is Right for You?

If you are comfortable dealing with financial institutions, have time to manage correspondence, and know the details of your agreement, the DIY route can save you money. If you would rather have someone else handle it, or you have multiple agreements across different lenders, a CMC can simplify the process considerably. The key is to understand the fee structure clearly before signing up with any company.

What About the FCA Redress Scheme?

Once the FCA’s formal redress scheme is in place, lenders may be required to contact affected customers directly — which could mean you receive compensation without having to claim at all. However, this is not guaranteed for every affected customer, and registering a claim in advance provides an additional layer of protection.

Whatever route you choose, the first step is the same: check whether your agreement is eligible before deciding how to proceed.

PCP vs HP: Which Type of Car Finance Is Affected by the FCA Investigation?

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The car finance mis-selling scandal covers a wide range of agreement types, but there is often confusion about which deals are actually in scope. This guide clarifies exactly which types of car finance are affected — and which are not.

PCP — Personal Contract Purchase

PCP is the most popular form of car finance in the UK and is firmly within scope of the investigation. Under a PCP agreement, you pay monthly instalments over a fixed term — typically two to four years — and at the end you have the option to make a final balloon payment to own the car, return it, or use any equity towards a new deal. Because PCP agreements were almost universally arranged through dealerships and funded by lenders operating discretionary commission arrangements, they are the primary focus of the redress scheme.

HP — Hire Purchase

Hire purchase agreements are also within scope. Under HP, you pay a fixed monthly amount and own the car outright at the end of the term with no balloon payment. HP deals arranged through dealerships before January 2021 are subject to the same DCA rules as PCP agreements, so HP customers can also make a claim.

What About Leasing and PCH?

Personal Contract Hire — commonly known as car leasing — is not covered by the current investigation. PCH agreements do not involve credit in the same way; you are renting the vehicle, not purchasing it on finance. The FCA’s investigation and the court rulings specifically relate to regulated credit agreements, which PCH typically is not.

What About Finance Taken Directly From a Bank?

If you arranged your car loan directly with a bank or building society — without going through a dealership — you are unlikely to be affected. The DCA issue arose specifically where a dealer acted as an intermediary and had the power to adjust the interest rate. Direct lending relationships did not typically involve this arrangement.

Not Sure Which Type You Had?

If you are unsure whether your agreement was PCP, HP, or something else, the easiest step is to check your original finance documents or contact your lender to ask for a copy. Alternatively, use our eligibility checker — we will help you identify whether your agreement is in scope and what your options are.