How to choose the best car finance claims company
You don't need a claims management company to make a car finance complaint. You can complain to your lender yourself for free, and the FCA's redress scheme is free to use.
If you do use one, look for a company that is authorised, clear about its fees and cancellation terms, open about the fact that you can claim for free, and honest that compensation isn't guaranteed.
A claims management company can be useful if you don't know who your lender was, no longer have your paperwork, or would rather someone else kept track of a process that keeps changing. If that sounds like you, Claim-Smart can help.
If you had car finance between 2007 and 2024, you've probably seen plenty of adverts from companies offering to handle your claim, and it can be hard to tell which ones to trust or whether you need one at all.
If you'd like to talk through your options before deciding anything, Claim-Smart can explain how the process works and whether our help would actually be useful in your situation.
In this piece, we cover what a good claims company looks like, what it should cost, how to spot a bad one and when doing it yourself might be the better option.
Do I need a claims company to make a car finance claim?
No, you don't need a claims company to make a car finance complaint. You can complain directly to your lender for free, and the FCA has confirmed its redress scheme is free to use.
If you're unhappy with your lender's final response, you can take your complaint to the Financial Ombudsman Service, which is also free.
Doing it yourself isn't complicated either. Your name, previous addresses and a rough idea of when you took out the finance are often enough for a lender to find your agreement, and our guide on how to make a car finance complaint yourself walks you through the steps.
What does a car finance claims company actually do?
A claims management company handles the admin of your complaint for you. That can include finding your lenders, submitting complaints, chasing responses and explaining what each letter means.
What a claims management company can't do matters just as much. It has no special powers, it doesn't decide whether you're owed compensation, and it can't make a lender pay more than the scheme rules allow.
Your lender will look at your agreement in the same way whether you complain yourself or someone complains for you.
Why does the car finance claims process feel so confusing right now?
Mostly because the FCA's redress scheme has been partially suspended while legal challenges against it are heard. Also because deadlines keep changing.
The FCA published its final scheme rules in March 2026, but after four parties challenged them, the Upper Tribunal suspended parts of the scheme in July 2026.
Lenders are still reviewing complaints, but they don't currently have to calculate or pay compensation, which is why payouts haven't started yet.
A case management hearing took place on 5 and 6 October 2026 and the hearing has now been set for February 2027.
If the scheme is upheld and nobody appeals, the FCA expects payments to begin in 2027, but if it's overturned in whole or in part, compensation could be delayed until 2028 or later.
If you've already complained, you don't need to complain again because of the delay.
If the latest FCA updates have left you unsure where your complaint stands, Claim-Smart can keep track of each change and explain what it means for your agreement, so you aren't left trying to decode lender letters on your own. Speak to our team about managing your complaint.
When might it be worth using a claims management company?
A claims management company may be worth it if you'd rather not manage the complaint yourself, or if parts of the process are hard for you.
For example, you might:
Need help working out who your lender was
Have had more than one car on finance over the years
Prefer not to deal with letters, emails and follow-up questions
Want help understanding lender responses as the rules change
None of these mean you have to use a claims company. They're the situations where people often find an extra pair of hands useful.
Had a few cars on finance and can't remember who arranged them? Claim-Smart can help you track down your old agreements, work out which ones may be worth checking and handle the complaints for you. Find out how we can help.
How much do car finance claims companies charge?
Most car finance claims companies charge a percentage of any compensation you receive, and FCA rules cap how much a regulated claims management company can take.
The cap depends on how much compensation you're given. You pay whichever is lower out of the percentage and the maximum charge, with VAT added on top.
Compensation | Maximum % | Maximum charge (excluding VAT) |
£1 to £1,499 | 30% | £420 |
£1,500 to £9,999 | 28% | £2,500 |
£10,000 to £24,999 | 25% | £5,000 |
£25,000 to £49,999 | 20% | £7,500 |
£50,000 or more | 15% | £10,000 |
As an example, the FCA estimates average compensation at around £829 per eligible agreement, although individual payouts will vary. On £829, a 30% fee would be £248.70, plus £49.74 VAT, making £298.44 in total.
The cap doesn't apply if you take a claim to court with a claims management company, and law firms are regulated separately.
Claim-Smart's fees follow the FCA's percentage bands of 30%, 28%, 25%, 20% and 15%, with VAT added. On a £1,000 payout, for example, our fee would be £300 plus £60 VAT, so £360 in total.
Want to know exactly what you'd pay before you decide anything? You can read Claim-Smart's terms of business, or ask our team to talk you through how fees would work on your agreement.
Can I cancel a claims company agreement?
Yes, you can cancel without paying a fee during the 14-day cooling-off period. After that, you may be charged a termination fee, but the FCA and SRA say it must be reasonable and reflect the work done.
Regulators have been checking this closely, and a few claims companies have already changed or reduced their fees following FCA scrutiny.
At Claim-Smart, you can cancel free of charge within 14 days. After that, our current terms allow us to charge our reasonable costs at £90 per hour including VAT, and we'll send an invoice showing how any fee was worked out.
How do I choose a good claims management company?
Check that the company is authorised, gives you its fees in writing, tells you that you can claim for free and is honest that compensation isn't guaranteed.
In practice, a good claims company should:
Appear on the FCA Register, or be regulated by the SRA if it's a law firm, with a reference number that matches its website
Explain its fees and any exit fees before you sign
Tell you about the free route, which FCA rules require claims management companies to do
Check whether someone else already represents you
Avoid promising a specific payout
Have a clear complaints process
What are the warning signs of a bad claims management company?
Be wary of any company that contacts you out of the blue, says you're definitely owed money, pressures you to sign quickly or is vague about its fees.
Some messages aren't from claims companies at all. The FCA has warned about scammers pretending to be car finance lenders and telling people they're owed compensation, so never pay an upfront fee or share bank details with someone who contacts you unexpectedly.
So, what's the best car finance claims management company for you?
The best car finance claims management company is one that's authorised, open about its fees and honest about your chances.
If your lender hasn't contacted you, you have until 31 August 2027 to complain if you want to join the scheme. It's worth checking whether your agreement could qualify first.
Claim-Smart is authorised and regulated by the FCA (FRN 935960). Our fees follow the FCA's caps, and you can cancel free of charge within 14 days.
You can complain to your lender for free. If you'd rather hand over the tracing, paperwork and chasing while the FCA scheme works its way through the courts, get in touch with Claim-Smart to see whether we're the right fit for you.
*Please see our terms and conditions for our fee structure and cancellation terms.
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