Which lenders can I make a mis-sold car finance claim against?
- Claim-Smart Contributor
- 2 days ago
- 4 min read
You can make a mis-sold car finance claim against a long list of major lenders. Most major UK motor lenders are involved. These include Volkswagen Financial Services Ltd, Mercedes-Benz Financial Services UK Ltd, Santander Consumer PLC and more.
If you bought a car through a finance agreement before November 2024, you might find you’ve been charged more than you should have.
This is due to the exploitation of commission structures between lenders and dealers or credit brokers, under the guise of a Discretionary Commission Arrangement.
The Financial Conduct Authority (FCA) has introduced a compensation scheme that aims to give customers back what they are owed, with payments being rolled out over the course of 2026.
To receive compensation, you must work out whether you are entitled to it before submitting a formal application.
While you can do this yourself for free, firms such as Claim-Smart Limited offer specialist expertise in the process, handling everything from drafting a formal request to escalating disputes to the Financial Ombudsman Service.
We offer a no-win no-fee service, committed to doing everything we can to help claimants achieve a positive outcome.
Which lenders are involved in the mis-selling of car finance?
Unfortunately, the list of lenders involved in mis-selling car finance consists of most major UK motor lenders.
They were able to do this through Discretionary Commission Arrangement (DCA). This was where car dealers or credit brokers were able to decide their own interest rates for customers taking out Personal Contract Purchases (PCP) or Hire Purchases (HP) and, as a result, earn higher commission than they were entitled to.
The major lenders involved include:
Black Horse Ltd (part of Lloyds Banking Group)
Santander Consumer (UK) PLC
Volkswagen Financial Services (UK) Ltd
BMW Financial Services (GB) Ltd
Close Brothers Ltd
Mercedes-Benz Financial Services UK Ltd
FirstRand Bank Ltd
MotoNovo Finance
PSA Finance UK Ltd (Peugeot/Citroën)
RCI Financial Services Ltd (Renault/Nissan)
Hyundai Capital UK Ltd
Toyota Financial Services (UK) PLC
Blue Motor Finance Ltd
Vauxhall Finance PLC
This list is not exhaustive and so, if you suspect you could be eligible, we would recommend that you either reach out to your lender, or get in touch with us today and we can walk you through the process.
How do I find out if I was mid-sold car finance?
You might have been mis-sold car finance if:
You weren’t informed the dealer would receive a commission from the lender
You weren’t informed the dealer was able to change your interest rate for their gain
You signed up to a PCP or HP agreement before January 28th 2021
If you were told about the dealer’s or credit broker’s commission you most likely wouldn’t be eligible.
The first step to take is to locate your paperwork and find out your lender’s name. If you don’t have the paperwork, don’t worry, it should be outlined on your credit report.
Then, you can contact your lender directly and ask for the details of your agreement.
The FCA’s investigation into mis-sold car finance centres around the fact that customers were kept in the dark over commission arrangements, so if you weren’t given information about it upfront, chances are you will be eligible.
How much compensation will I get if I was mis-sold car finance?
According to the FCA, around £829 will be awarded per agreement, lower than the initially proposed rate.
It’s predicted that 44% of all agreements are going to be eligible, which will see the scheme pay out a total of around £7.5 billion in compensation to car buyers across the UK.
Additionally, if you had more than one agreement over the period between 2007 and 2021, you might be entitled to more than one payout, increasing your compensation significantly. So it’s worth checking every deal you’ve had since 2007.
At Claim-Smart Limited, our expert team provides an assessment of your personal situation and specialised support throughout the process, helping you understand your position better.
To start your claim with us today, click here.
When will mis-sold car finance be paid?
Compensation for mis-sold car finance is expected to begin rolling out in 2026, although the exact timeline remains uncertain.
This follows an ongoing investigation by the Financial Conduct Authority into whether lenders and brokers failed to properly disclose commission arrangements to customers.
Since January 2024, the FCA introduced a pause on handling motor finance complaints to ensure consistency across cases and to allow time for a standardised redress scheme to be developed.
That pause is due to end in May 2026, with the FCA having recently confirmed it will publish the final rules and full outline of the compensation scheme ahead of this, in March 2026.
Under the proposed scheme, lenders are expected to have around 3–5 months to identify affected customers, depending on the age of the finance agreement. Following this, customers should be informed within a further three months whether they are entitled to compensation and how much they will receive.
With the scheme rules now imminent, anyone who believes they may have been affected should consider starting their claim as soon as possible rather than waiting to be contacted later in the process.
How can Claim Smart help with a mis-sold car finance claim?
Knowing whether you can make a mis-sold car finance claim against your lender is just the first step.
There is a regulated process you must carry out before your claim has a chance of being accepted.
You don’t have to use a Claims Management Company such as Claim-Smart Limited to help you through it, but having the right support could improve your outcome.
With our expertise by your side, we’ll make the process as simple as possible. Every case is different, so we'll walk you through your options every step of the way, even if the claim is disputed.
Plus, as we work on a no-win no-fee basis, it’s in our best interest to help you achieve a successful outcome.
Want to find out whether you’re eligible? Reach out to us and start your claim today.
Comments