Car Finance Refund Check: Are You Owed Up to £700?

If you financed a car in the UK between April 2007 and November 2024, there's a real chance you were overcharged — and you may be entitled to compensation. The Financial Conduct Authority (FCA) has proposed a £8.2 billion redress scheme covering an estimated 14.2 million car finance agreements.

This page explains who qualifies, how to check for free, and what documents — including your V5C logbook — you might need.

Am I eligible?

You are likely eligible if all of the following apply:

How much could I get?

The FCA's central estimate puts the average payout at around £700 per eligible agreement. The actual amount depends on the size of your loan, the length of the agreement, and the commission the dealer received.

If you financed multiple vehicles during the period, each agreement is assessed separately — so you could receive compensation for each one.

How to check for free

The quickest first step is to use our free eligibility checker — answer 4 questions and get a personalised payout estimate in under 60 seconds. No personal data required at this stage.

Once you have your estimate, the next step is the full Agreement Finder — this automatically searches credit reference agencies for all your historic PCP and HP agreements back to 2007. You'll need to enter your personal details for this step.

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Do I need my V5C logbook?

You do not necessarily need your V5C to start a claim. Most checkers work from your name, date of birth, and previous addresses to locate your agreements on the credit register. However, your V5C can be useful as supporting evidence in certain situations:

• To confirm the vehicle registration number if you have forgotten it
• To cross-reference the vehicle against your finance agreement details
• If the lender's records are incomplete or disputed
• If you need to demonstrate you were the registered keeper at the time

When will I be paid?

The FCA's proposed scheme is expected to begin operating in 2026. Here's how the process is expected to unfold:

1. Lenders identify customers with eligible agreements and write to them
2. Customers who have already complained are assessed first and paid sooner
3. If you haven't complained, lenders must contact you within six months of scheme launch
4. You then have six months to respond
5. Once you accept, the lender has one month to pay

What is the car finance mis-selling scandal?

For years, car dealers and finance brokers were allowed to secretly increase the interest rate on your car finance deal in order to earn a higher commission from the lender. You paid more; they pocketed the difference. You were never told.

This practice — known as a Discretionary Commission Arrangement (DCA) — was finally banned by the FCA in January 2021. But millions of drivers had already been overcharged under agreements stretching back to 2007.

Following a Supreme Court ruling and a subsequent FCA investigation, the regulator has now proposed a formal compensation scheme requiring lenders to identify and pay back affected customers.

Frequently asked questions

What if I can't remember who my lender was?

You don't need to. Free checkers use the credit reference agencies (Experian, Equifax, TransUnion) to find all your car finance agreements, including the lender name, going back to 2007. Your credit file holds this information even if you've moved house or changed name since.

What if I've sold the car?

It doesn't matter. Eligibility is based on the finance agreement, not whether you still own the vehicle. If you had a qualifying PCP or HP agreement between 2007 and 2024, you may still have a claim.

Do I need to pay anything upfront?

No. Whether you self-claim, use the FCA scheme, or use a no-win-no-fee firm, there is nothing to pay upfront. If you use a CMC or law firm and they win, they take a percentage of your payout.

What if I already settled or accepted an offer?

If you previously accepted compensation for a specific agreement, you won't be able to claim again for that agreement. However, if you had multiple agreements, any that weren't settled remain potentially eligible.

Can I make a claim on behalf of someone else?

Generally, claims must be made by the person named on the finance agreement. If you are acting on behalf of a deceased person's estate, specialist legal advice is recommended.