Common Questions About Car Finance Claims Answered

Can I claim if I've already paid off my finance?

Yes. You can make a claim for any car finance agreement taken out between April 2007 and November 2024, regardless of whether the agreement is still active or has been fully paid off. The claim relates to whether you were overcharged at the time the agreement was set up.

Will this affect my credit score?

No. The initial eligibility check uses a soft credit search, which does not appear on your credit file and cannot be seen by other lenders. Making a complaint to a lender about mis-selling also does not affect your credit score.

Do I need my original finance documents?

No. You do not need your original agreement or any paperwork. A soft credit check can identify motor finance agreements linked to your name. The lender is required to hold records of the agreement and any commission arrangements.

How much could I receive?

Compensation amounts vary depending on the specifics of your agreement. Factors include the interest rate, the amount financed, and the duration of the agreement. The average estimate is approximately £700 per agreement, but some claims result in significantly more.

How long does the process take?

Timescales can vary. Some claims are resolved within a few weeks, while others may take several months, particularly if the lender contests the claim or if it needs to be escalated to the Financial Ombudsman.

Can I claim for more than one vehicle?

Yes. If you had multiple car finance agreements during the eligible period, you can claim for each one separately. This can increase your total compensation significantly.

What is "no win, no fee"?

It means you will not pay anything if your claim is unsuccessful. If compensation is awarded, a percentage fee (typically up to 30% including VAT) is deducted from the amount you receive. There are no upfront costs.

Is Carclaimer a claims management company?

No. Carclaimer is a lead generation service that helps you check your eligibility. If eligible agreements are found, we connect you with a regulated claims management company or solicitor who will handle your claim.

What if my lender has gone bust?

You may still be able to claim. The Financial Services Compensation Scheme (FSCS) can cover claims against firms that have ceased trading, up to certain limits.