If you secured car finance through a hire purchase (HP) or personal contract purchase (PCP) agreement from 2007 onwards, you might qualify for a refund.

The FCA has yet to determine the full scope of its investigation, as DCAs were widely used before being prohibited. However, it is expected that only agreements signed after April 2007 will be reviewed, as this marks the FCA's start in regulating motor finance.

When financing a car through PCP or HP, dealerships or brokers may have inflated your interest rate to increase their commission, often without your knowledge. This practice, known as Discretionary Commission Arrangement (DCA), was banned on January 28, 2021.

If these commissions were not clearly disclosed, you could be owed compensation.

The amount of compensation you could receive depends on several factors, including the total finance amount, the date the agreement began, the loan duration, the interest rate charged, and the commission your lender paid to the car dealership.

According to the Financial Conduct Authority's report Our work on motor finance – final findings (March 2019), a typical £10,000 motor finance agreement involving a Discretionary Commission Arrangement led to consumers being overcharged by around £1,100 over a four-year term.*

*See https://www.fca.org.uk/publication/multi-firm-reviews/our-work-on-motor-finance-final-findings.pdf s. 2.15, Pg9.

You do not have to use a law firm, or claims management company to make your claim. You can claim directly yourself for free to your lender, and then the Financial Ombudsman.

Success Fee Information

If our legal partner is successful in securing compensation for you, a Success Fee will apply. This fee is based on the total compensation offered per finance agreement. The following outlines the fee structure:

If you receive between £1 and £1,499, the Success Fee is 30%, with a maximum fee of £420.

If you receive between £1,500 and £9,999, the Success Fee is 28%, with a maximum fee of £2,500.

If you receive between £10,000 and £24,999, the Success Fee is 25%, with a maximum fee of £5,000.

If you receive between £25,000 and £49,999, the Success Fee is 20%, with a maximum fee of £7,500.

If you receive £50,000 or more, the Success Fee is 15%, with a maximum fee of £10,000.

Please note: These fees do not include VAT, which will be added at the applicable rate.

If you have an outstanding balance with your lender, they may use part or all of your compensation to repay that balance. In such cases, our legal partner's Success Fee will still be calculated based on the total compensation awarded — not the cash you receive directly.

Examples:

Example 1: You're awarded £1,000 and have no outstanding balance. The Success Fee would be £300 + VAT (£60), leaving you with £640.

Example 2: You're awarded £1,000 but owe your lender £800. They apply the £800 toward your debt and send £200 to us. The Success Fee is still £300 + VAT (£60). We apply the £200 received and you would owe the remaining £160.

Your car finance may qualify for a claim if:

• You purchased your vehicle through a personal contract purchase (PCP), which functions similarly to a loan for buying the car
• You had a hire purchase agreement, where you made monthly payments toward owning the vehicle

Signing up for a car finance claim doesn't need to be a headache. WithComplex Law, we aim to make the process as stress-free as possible – to register your claim with us, simply click on the button below to get started, and we'll do the rest.

If you financed a vehicle between April 2007 and January 2021, your agreement may have included undisclosed commission payments. To determine if you're eligible for compensation, complete our quick eligibility check above and we'll assess your potential claim.

Absolutely. Each vehicle finance agreement represents a separate potential claim. If you've financed multiple vehicles since 2007 that may have had hidden commissions, you can pursue compensation for each individual agreement. Start the process by submitting your information above.

The length of time it takes to finalise a claim can vary. However, we'll work hard to ensure you get the compensation you deserve and will keep you updated throughout the process.

Complex Law is committed to making car finance claims simple and stress-free. Our team works tirelessly to ensure you receive the compensation you deserve while guiding you through the entire process.