Can I claim for mis-sold car finance if I've already paid the agreement off?

• Yes, you can still claim for mis-sold car finance even if you've already paid off your agreement.

• The claim is based on how your finance agreement was sold, not whether you're still making payments.

• If you had a PCP or Hire Purchase agreement between 6 April 2007 and 1 November 2024, you could still be eligible for compensation. If you want to find out more, Claim-Smart can help.

If you've already finished paying for your car, you might assume you've missed your chance to make a PCP compensation claim. Luckily, that's not the case.

Even if you already paid the agreement off years ago, you may still be able to claim compensation if the finance agreement included a hidden commission arrangement that wasn't properly explained to you.

Here, we explain who can still claim after paying off their car finance, what types of agreements qualify and what you should do next.

If you'd like a bit of extra help understanding whether you may be eligible, Claim-Smart can help.

Get in touch to find out more.

Can I still claim if my car finance has been paid off?

Yes. Paying off your car finance does not stop you from making a claim.

The FCA's motor finance compensation scheme focuses on whether you were treated fairly when you took out the agreement, not when it was paid off.

If the dealer or broker got commission from that agreement that wasn't properly disclosed, you could still be entitled to compensation even if you've made every payment and the agreement has finished.

If you want help claiming compensation or working out whether you may be eligible, get in touch with Claim-Smart today.

Does it matter how long ago I paid it off?

Not necessarily, the important date is when you took out the finance agreement, not when you finished paying it.

The FCA's scheme currently covers finance agreements taken out between 6 April 2007 and 1 November 2024.

So, even if your agreement ended many years ago, it may still fall within the scheme.

What types of finance agreements are included in the FCA redress scheme?

The FCA's redress scheme mainly covers:

• Personal Contract Purchase (PCP)

• Hire Purchase (HP)

The vehicle must have been for personal use, any vehicles used for business purposes are not eligible.

Personal Contract Hire (PCH) agreements are not included because they are lease agreements rather than finance agreements. 0% interest finance agreements are also excluded from the scheme.

What if I no longer own the car?

You may still be able to claim. This is because your ability to claim is based on the finance agreement itself, not whether you still own the car.

This means you could still be eligible if you sold the car, traded it in, part-exchanged it or no longer have it.

The important question is whether the finance agreement was mis-sold, not whether you still own the car it relates to.

What if I had had more than one car on PCP or HP finance?

You may be able to claim for each eligible agreement. Many people have taken out more than one PCP or HP agreement over the years.

If more than one of those agreements falls within the FCA's scheme, you could potentially receive compensation for each one.

It is each finance agreement that is assessed individually, not each borrower.

What if I don't have the PCP or HP paperwork anymore?

Don't worry if you've lost your finance documents. Many people no longer have agreements that ended many years ago. After all, the redress scheme goes all the way back to 2007, so it’s actually quite common for claimants not to have their original documents.

You may still be able to find your lender by checking old bank statements, credit reports, confirmation emails or paperwork from the dealership.

If you're not sure who your lender was, Claim-Smart can help. Get in touch with Claim-Smart today.

Does paying off the car finance agreement affect how much compensation I could receive?

No, the fact that your agreement has ended does not lower the amount of compensation you may receive.

If your agreement qualifies, compensation will be calculated using the FCA's methodology rather than whether you still owe money on the vehicle.

The FCA currently estimates that the average payout could be around £829 per eligible agreement, although every case is different.

Some people may receive less, while others could receive more, depending on their agreement and how much undisclosed commission they paid out.

Should I still make a car finance complaint now?

Yes, although compensation payments have been delayed because parts of the FCA's redress scheme are currently subject to legal challenges, it is still worth making a complaint if you think you may be eligible.

Submitting your complaint now means your lender can start looking into your agreement and working out whether you may or may not be eligible for compensation.

If the scheme is kept in its current state, people who have already complained are expected to move through the compensation process faster than those who wait.

If you need help submitting your claim, Claim-Smart can help!

What if I was bankrupt or in an IVA?

If you were declared bankrupt after taking out the finance agreement, different rules may apply.

In some cases, the right to claim compensation belongs to the Official Receiver rather than you personally.

If you are currently in an Individual Voluntary Arrangement (IVA), you should speak to the insolvency practitioner before making a claim.

If you're not sure whether this applies to you, it is worth getting some advice before submitting your complaint.

So, can you claim for mis-sold car finance if you’ve already paid the agreement off?

Yes, you can. The fact that you've finished paying your PCP or HP agreement does not stop you from claiming compensation.

If your agreement was taken out between 6 April 2007 and 1 November 2024 and it included an undisclosed commission arrangement or another unfair agreement covered by the FCA's redress scheme, you may still be eligible.

You can complain directly to your lender for free, or, if you'd like support understanding your options and managing the process, Claim-Smart can help.

Get in touch to find out more.

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