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 now 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. The average payout is around £700 per agreement.

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

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

Am I eligible?

You are likely eligible if all of the following apply:

• You took out Personal Contract Purchase (PCP) or Hire Purchase (HP) car finance
• The agreement was signed between 6 April 2007 and 1 November 2024
• The finance was arranged through a dealer or broker (not directly with a bank)
• A commission arrangement existed between the lender and the dealer/broker

You are not eligible if:

• You leased the car under a Personal Contract Hire (PCH) agreement
• You financed directly with a bank with no broker involved
• You have already accepted compensation for this agreement
• The commission paid was below the FCA's minimum thresholds (under £120 before April 2014; under £150 after)

How much could I get?

The FCA's central estimate puts the average payout at around £700 per eligible agreement. However, the actual amount depends on:

• The size of your loan
• The length of the agreement
• The interest rate differential (what you paid vs what you should have paid)
• The size of the commission the dealer received

For a typical PCP deal of £9,500 over 48 months, the indicative payout is £400–£900. For a larger HP agreement of £15,000 over 60 months, estimates run to £800–£1,600. If you financed multiple vehicles during the period, each agreement is assessed separately — so you could receive compensation for each one.

Do I need my V5C logbook?

You do not necessarily need your V5C to start a claim. Most claims tools — including the free 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 of the agreement

If your V5C is lost, damaged, or was never issued, you can apply for a replacement through CarForms. The process takes around 6–8 weeks once the V62 application reaches DVLA, with a £25 DVLA fee.

How to check for free

The quickest way to find out if you have eligible agreements is to use a free online checker. These tools search the major credit reference agencies for PCP and HP agreements in your name going back to 2007 — you don't need to remember the lender or dig out old paperwork.

What you'll typically need:

• Your full name
• Date of birth
• Previous addresses (for the period 2007–2024)

The check takes around 2 minutes. If eligible agreements are found, you'll be shown options for how to proceed — either self-submitting a complaint to the lender directly (free), waiting for the FCA's scheme to contact you (also free), or using a claims firm (fee applies on success).

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. If you've already complained, your case is assessed first — these customers are paid sooner
3. If you haven't complained, lenders must contact you within six months of the scheme launch
4. You then have six months to respond/opt in
5. Once you accept, the lender has one month to pay

Customers who have already submitted complaints are ahead of the queue. If you haven't complained yet, doing so now — before the scheme officially starts — puts you in the faster track.

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.