Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.

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Car Finance Redress | Genuine No Win, No Fee*

You could be owed thousands in car finance redress because you overpaid on your car finance. We are a claims management company that has helped UK consumers recover tens of millions of pounds in mis-sold finance compensation.

If you purchased a car, van, or motorbike using finance in the UK between April 2007 and January 2021, you could be entitled to significant car finance redress through a car finance claim. Recent FCA investigations1 reveal that millions of consumers were overcharged, with the FCA estimating the average overpayment at about £1,1002, meaning you could be owed substantial compensation for hidden commission charges and unfair practices that cost you thousands.

  • Around 40% of car finance deals had discretionary commission arrangements2
  • Over 14 million finance agreements were subject to DCAs2
  • Industry compensation estimates range from £16bn to £44bn3

*Our fees range from 18% to 36% (including VAT). Fees only apply if you receive a compensation payment.

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The Multi-Billion Car Finance Claims Scandal: Why You Deserve Car Finance Redress

The car finance industry has been rocked by revelations of systematic mis-selling that has cost UK consumers millions. Recent investigations by the Financial Conduct Authority (FCA)1 and landmark court rulings4 have exposed how car dealers and finance brokers were paid secret commissions that were never disclosed to customers, leading to inflated interest rates and thousands of pounds in overcharges.

The numbers are staggering:

  • Industry analysts estimate total compensation could reach £30bn to £44bn3
  • Over 2 million consumers use motor finance annually5
  • Around 40% of car finance agreements may have been mis-sold2
  • Average overcharge: approximately £1,100 per finance agreement2

Investment bank Jefferies estimates the bill for the finance sector could be as high as £13bn6, while some analysts suggest the scandal could cost lenders from £30bn to £44bn, with concerns that it could be on the scale of the £50bn PPI scandal3.

This widespread misconduct means you likely have grounds for a car finance claim seeking substantial car finance redress.

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Types of Car Finance Claims: Understanding Your Rights to Car Finance Redress

Your car finance claim can be based on two main types of commission arrangements that may entitle you to car finance redress:

Discretionary Commission Arrangements (DCA) Claims banned by the FCA7

Under DCAs (banned in January 20218), car dealers could adjust your interest rate to increase their commission payments. The higher your rate, the more they earned, creating a direct conflict of interest that led to customers paying excessive charges.

The FCA estimates around 40% of car finance deals had such arrangements until they were banned2. If your agreement was before January 28, 2021, you likely have a strong car finance claim for DCA-related redress.

Non-Discretionary Commission Claims – Hidden Payments

Even without DCAs, dealers received fixed commissions or flat fees that were rarely disclosed. If you weren’t told about these payments, you couldn’t make an informed decision, giving you grounds for a car finance claim.

A pivotal Court of Appeal ruling in October 20247 established that undisclosed broker commissions are unlawful without informed customer consent, significantly expanding the scope of claims.

Finance Lenders You May Be Able to Make a Claim Against

Who Can Make Car Finance Claims for Redress?

You may be entitled to redress if:

✅ Your agreement was between April 2007 and January 28, 2021
✅ You used PCP or HP finance
✅ You were not told about dealer commissions
✅ You felt pressured or misled
✅ Interest rates seemed high or unexplained
✅ Affordability checks seemed poor

Important: You can claim for multiple vehicles, even if paid off, active or repossessed.

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How Much Car Finance Redress Could You Receive?

Typical payouts include:

  • £1,100 average per agreement2
  • Range: £500 to £5,000+
  • Multiple vehicle claims allowed

Time Limits & Legal Support

  • 6 years from the agreement date, or
  • 3 years from when you first became aware of the issue11

Start Your Car Finance Claim Today — No Win, No Fee

  • No upfront fees
  • Only pay if your claim is successful
  • We handle everything

Disclaimer

This page provides general information only. Allegiant Finance Services Ltd (FCA Ref: 836810) is authorised and regulated by the Financial Conduct Authority. Always seek personalised legal or financial advice before acting.

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Stephen Griffiths, Head of Product

Stephen is our Head of Product, with a steadfast dedication to consumer justice and thought leadership . In his early years, Stephen was a Complaints Handler at Lloyds Banking Group. Stephen then worked at the Financial Ombudsman Service for over 10 years in various roles, including Quality Auditor. Stephen ensures Allegiant provides top tier claims handling for our customers.

Allegiant Car write-off

DCA Claims (Discretionary Commission Arrangements)

Learn more about Discretionary Commission Arrangement Claims here

DCA Claims
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NDA Claims (Non Discretionary Commission Arrangements)

Learn more about Non Discrestionary Commission Arrangements here

NDA Claims

Frequently Asked Questions

Are car finance claims real? / Are these car finance claims legit?

Absolutely. In fact, they’re grounded in solid legal precedent. In October 2024, the Court of Appeal ruled that dealers and brokers must disclose motor-finance commissions; failing to do so meant many borrowers paid inflated rates. The Supreme Court then heard appeals (Close Brothers and FirstRand/MotoNovo) in April 2025, with a final judgment due in July 2025.

Car finance claims can be pursued either on your own or via a claims management company (CMC) or regulated law firm. Both routes follow the same FCA and Ombudsman processes, but the level of support differs

DIY (Do It Yourself)

Gather Every Document: Locate your finance agreement, APR schedules, purchase invoices, application forms and any broker/dealer communications.
Submit a Formal Complaint to Your Lender/Broker: Write a clear letter referencing hidden or “discretionary” commission and how it likely inflated your rate. Under normal FCA rules, lenders have eight weeks to issue a “final response,” but these timelines are currently on hold until the Supreme Court judgment in July 2025. Nevertheless, lodging a complaint now preserves your complaint date.
Wait for Final Response / Escalate: Once the Supreme Court rules, lenders must resume handling. If you’re unhappy with their final response (or they miss the eight-week deadline), you escalate to the Financial Ombudsman Service (FOS). The FOS typically resolves straightforward cases in 3–9 months.
Receive Redress: If successful, your lender pays the difference between what you actually paid and what you should have paid, plus interest on those overpayments.

Using a CMC or Law Firm

Initial Eligibility Check: The specialist (CMC or solicitor) first verifies whether your finance deal (PCP or HP signed between April 2007 and January 2021) likely involved an undisclosed commission. This quick screening often takes just a few minutes of basic details.
Paperwork Gathering & Review: Instead of you chasing every invoice or APR sheet, the CMC or law firm requests those documents on your behalf. They know exactly which forms lenders require – saving you time and ensuring nothing is overlooked.
Complaint Drafting & Submission: Experts draft a robust complaint letter that cites FCA regulations and relevant case law. They submit it to the lender (or broker) and track responses in real time. If the lender drags its feet, the CMC/law firm can escalate at the eight-week mark on your behalf.
Ombudsman Escalation (If Needed): Should the lender’s final response be unsatisfactory, the CMC or solicitor compiles all evidence and files the case with the FOS – often framing arguments in tighter legal language to strengthen your position.
Negotiation & Settlement: Once liability is acknowledged – either directly or via the FOS – the specialist negotiates the redress calculation (overpayment interest, lost credit benefit, etc.).

Timelines hinge entirely on the Supreme Court’s July 2025 decision and the FCA’s subsequent instructions:

Supreme Court Judgment (July 2025): The Court is set to publish its ruling by late July 2025. Until then, lenders must pause all commission-related complaints.

FCA Announcement (Within 6 Weeks of Ruling): Once the judgment appears, the FCA has pledged to outline (by approximately late August 2025) what the next steps will be. We expect claims to start paying out later in 2025.

“Best” depends on three non-negotiable criteria—regulation, fees and track record—whether you pick a CMC or a law firm:

Regulatory Oversight (FCA or SRA):

It is essential to ensure your professional representative is authorised to represent you under a relevant regulator.

Claims Management Companies (CMCs) are regulated by the FCA under the Financial Services and Markets Act.

Law Firms handling these claims are regulated by the Solicitors Regulation Authority (SRA).

Fee Structure & Transparency:

No Win, No Fee: Both top CMCs and law firms typically operate on a no win–no fee basis, but the percentage they charge can vary (often 25–35 percent of your redress). Always request their full fee schedule in writing. Look out for hidden extra costs (e.g., VAT, “file handling” fees, or unscheduled disbursements). Here at Allegiant, our prices are clearly stated to include VAT. We have no hidden charges.

Lawyers vs CMC Fees: In some cases, SRA-regulated firms charge slightly higher percentages than CMCs.

Demonstrable Success & Client Feedback

Track Record: The best providers (CMCs or law firms) publish anonymised case studies or statistics demonstrating their experience. Allegiant has claimed over £80 million across all claim types.

Independent Reviews: Check Trustpilot, Which? or MoneySavingExpert forums. Beware of five-star packed reviews—look instead for detailed, balanced feedback. High-volume CMCs sometimes trade on aggressive marketing; top law firms usually have steadier, quality-based reputations. Allegiant has an excellent Trustpilot rating Our reviews are not manipulated. Be aware of providers that ask customers to write a 5* review based on a “great” phone call only(!). Look for results based reviews.

See the Latest Car Finance News from our Insights blog

Two Types of Commission Explained

In this blog, our Head of Product, Stephen Griffiths, explores the main two branches of commissions associated with car finance.

View now

Mis-sold Car Finance: What You Need to Know

We take a look at the essentials all UK drivers should know about vehicle hidden commission claims.

Learn now

The Story of Ms Lewis, Arnold Clark, Barclays Partner Finance, and Hidden Commission

Learn about the humble beginnings of the UK’s largest financial scandal since PPI.

Go now

Our Car Finance Claims Process

  • investigation 1

    Step 1

    We'll locate and review your car finance agreements

  • paperwork icon

    Step 2

    We'll spot and lender failings, and hold them to account

  • negotiation 1 icon

    Step 3

    We'll review the lenders offer, or escalate as necessary

  • cash back icon

    Step 4

    Where eligible, we will ensure you are re-united with your cash

Claiming for Free Yourself

Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.