Question 1

What is the car finance mis-selling scandal?

Accepted Answer

The FCA found that many car finance dealerships received discretionary commission arrangements (DCAs) from lenders, which allowed them to increase your interest rate in exchange for higher commission. This means you may have paid significantly more than you should have for your car finance.

Question 2

Am I eligible to make a claim?

Accepted Answer

You may be eligible if you took out a PCP (Personal Contract Purchase) or HP (Hire Purchase) car finance agreement between April 2007 and January 2021 through a UK car dealership. The key factor is whether a discretionary commission arrangement was in place.

Question 3

How much compensation could I receive?

Accepted Answer

The average compensation per eligible agreement is around £700, but amounts vary depending on the interest rate applied, the commission arrangement type, and the length and value of your agreement. Some claims result in significantly higher payouts.

Question 4

Will checking my eligibility affect my credit score?

Accepted Answer

No. We use a soft credit search only, which does not appear on your credit file and has no impact on your credit score. Only you can see soft searches on your report.

Question 5

How long does the claims process take?

Accepted Answer

The initial eligibility check takes just a few minutes. If you have eligible agreements, the full claims process typically takes 6-12 months, depending on the lender's response time and the complexity of your case.

Question 6

What does 'No Win, No Fee' mean?

Accepted Answer

It means you won't pay anything unless your claim is successful. If your claim doesn't result in compensation, you pay nothing. If it is successful, a pre-agreed fee (typically a percentage of the compensation) will be deducted.

Question 7

What documents do I need?

Accepted Answer

For the initial check, you just need your vehicle registration number, personal details, and current address. If you proceed with a claim, you'll need to provide a valid ID (driving licence or passport) for verification.

Question 8

Can I claim if I've already finished paying off my car finance?

Accepted Answer

Yes. You can claim whether your agreement is currently active or already settled. As long as it falls within the eligible date range (April 2007 onwards), you may have a valid claim.

Question 9

What is a discretionary commission arrangement (DCA)?

Accepted Answer

A DCA was an arrangement where the car dealership (broker) was given the power by the lender to set your interest rate. The higher the rate they set above the minimum, the more commission they earned. This created a conflict of interest, as the dealer was incentivised to charge you more.

Question 10

Is my data safe?

Accepted Answer

Your data is protected with 256-bit SSL encryption and stored securely in compliance with GDPR. We only use your information for the purpose of checking your eligibility and processing your claim. We never sell your data to third parties.

Frequently Asked Questions

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