Mis-sold car finance compensation update

If you bought a car, motorbike or van using finance between 6th April 2007 and 1st November 2024, you may be eligible for compensation.

The Financial Conduct Authority has set up a scheme to help people check their eligibility and put in a claim without the help of a lawyer or a claims management firm.

However, that scheme has been challenged by some car finance companies and a consumer group, and as such, it has partially been suspended.

The legal challenge is due to be heard between the 16th - 26th of February 2027. Until then lenders are unlikely to contact you to inform you how much you're owed. They may still be contacting you to inform you that you're not eligible for compensation, however, so keep an eye out for that.

If you put a complaint in by 30th June 2026, and your agreement began on or after 1st April 2014 , then car finance firms are trying to make all the relevant parties aware they're not eligible for compensation by the 18 November 2026.

If your agreement began before 1st April 2014, and you complained by 31st August 2026, then you'll likely be hearing whether you're ineligible by the 18th January 2027.

If you complain after these dates, and you are not owed compensation, your lender should tell you within 5 months of receiving your complaint.

However, just because you haven't heard from lenders by those dates, unfortunately that doesn't mean you're automatically going to get some compensation.

But the FCA is still encouraging people to submit their claims, and you can do that here, external. Simply search its list of lenders to find relevant contact details, then download the relevant template complaint letter or email, or a link to the lender's dedicated complaint form.

Lawyer Denise Nurse talked about this on Morning Live back in April - you can watch that episode back here to find out more. If you would like to use Denise's template complaint letter, click here.

Then in September, Rebecca Wilcox provided us with an update, and you can watch that back here.

The FCA has also been putting out warnings surrounding legitimate and illegitimate claims management companies. Its taskforce, working with the Information Commissioner's Office, the Advertising Standards Authority, and the Solicitors Regulation Authority, has removed more than 1,200 misleading adverts since January 2024.

If you feel you were misled into signing up to a claims management firm or law firm, you can put in a complaint about that as well using the FCA's template letter, which you can find here, external.