GUIDE | CONSUMER RIGHTS & RECLAIMING
TL;DR
You do not need a claims management company or law firm to claim car finance compensation. The FCA has confirmed the process is free to do yourself - and doing so means you keep 100% of any payout rather than losing up to 36% including VAT in CMC fees. This guide covers the exact steps using only primary sources.
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⚠ The FCA's redress scheme is currently subject to four legal challenges and payout dates have been removed from the FCA website. This does not affect your ability to complain now - and complaining before the scheme starts means your case is assessed and paid sooner once the scheme is confirmed. |
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Key Facts
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Why you do not need a CMC or law firm
Claims management companies (CMCs) and law firms have contacted millions of car finance customers offering to handle compensation claims for a fee of 30% or more of any payout. On an average payout of £829, that is £249 in fees gone before you see a penny. The FCA has been unambiguous: "You do not need a law firm or claims management company, which may charge over 30% of any compensation." The FCA launched a taskforce with the SRA, ICO and ASA specifically to tackle poor CMC practices in this space, including customers being signed up without consent.
Do you qualify? Check in 30 seconds
| Question | Yes | No |
|---|---|---|
| Financed a car, bike, van or campervan between 6 Apr 2007 and 1 Nov 2024? | Proceed | Not eligible |
| Was it PCP, HP or hire purchase (not leasing)? | Proceed | Not eligible |
| Were you clearly told about any commission arrangement at the time? | May not qualify | Likely eligible |
| High-value loan (top 0.5% by size for that year)? | Use FOS instead | Covered by scheme |
| Already received compensation for this exact agreement? | Excluded | Eligible to claim |
Five steps to claim yourself for free
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Step 1: Find your lender Your complaint goes to the lender you paid each month, not the car dealer. Check old bank statements for the direct debit name, check your credit file free via Experian/Equifax/TransUnion, or use the free Equifax Car Finance Checker app covering most records back to 2007. Cannot find them? Complain to the dealership and they must forward it. You do not need your original paperwork - lenders must search their own records. |
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Step 2: Get the free FCA template letter Download the free template complaint letter from fca.org.uk/consumers/car-finance-complaints. Add your name and contact details as they were at the time of the agreement, vehicle details (registration, approximate date, monthly payment), and a statement that you were not informed about commission. No legal knowledge needed. The FCA lender list at the same page gives direct complaint form links for every covered lender. |
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Step 3: Submit directly to your lender Use the lender's online complaint form (fastest) or post the template letter. Keep a copy and note the submission date. The lender must acknowledge receipt. Do not sign up with a CMC at this stage - you risk losing up to 36% including VAT of your payout for no benefit. |
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Step 4: Wait for your lender's response Lenders have three months from the end of the implementation period to confirm whether you are owed money. Due to four legal challenges, the FCA's working assumption is lenders begin handling complaints from mid-November 2026. Early complainants are paid first when the scheme opens. If the scheme is struck down entirely, your complaint proceeds via the Financial Ombudsman Service - also free. |
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Step 5: Disagree with the outcome? Use the FOS for free If the lender rejects your complaint or you believe the offer is too low, escalate to the Financial Ombudsman Service within six months of the lender's final response. The FOS reviews whether scheme rules were followed. No solicitor or CMC needed. |
Lender status: who is cooperating vs challenging
| Lender | Status | Action |
|---|---|---|
| Volkswagen Financial Services | Challenging | Still complain - case is queued regardless |
| Mercedes-Benz Financial Services | Challenging | Still complain - case is queued regardless |
| CA Auto Finance | Challenging | Still complain - case is queued regardless |
| Black Horse (Lloyds Banking Group) | Cooperating | Complain at blackhorse.co.uk |
| Close Motor Finance | Cooperating | Complain at closemotorfinance.co.uk |
| All other lenders | No challenge confirmed | Use FCA lender list for direct link |
A legal challenge does not invalidate your complaint. The FCA has confirmed all lenders must prepare to handle complaints regardless of the outcome. Complaining now is the correct action for every lender on the list.
Already signed with a CMC? Here is what you can do
If you signed with a CMC or law firm and are unhappy - signed up without clear consent, misled about fees, or charged for minimal work - complain directly to that firm using the FCA's separate CMC complaint template (same page). If they do not resolve within eight weeks, escalate to the Claims Management Ombudsman (FCA-regulated firms) or Legal Ombudsman (solicitors). You may be entitled to cancel the agreement without fee or receive a refund of fees already paid. Do not sign with multiple CMCs - you risk multiple fees on the same claim.
Scam warning
No genuine lender, the FCA, or any government body will contact you unsolicited asking for bank details, PINs or passwords. Verify any contact using the FCA's official lender list only. Report suspected scams to Action Fraud and forward suspicious texts to 7726 (Ofcom).
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Disclaimer: This article is for general information only and does not constitute financial or legal advice. Kaeltripton.com is an independent editorial publisher and is not regulated by the FCA. Always verify information at primary sources and consult a qualified adviser before making decisions about savings, investments or legal claims. |
Frequently asked questions
How long does a DIY car finance complaint take?
Under the scheme, lenders have three months from the end of the relevant implementation period to tell you whether you are owed compensation. Given the current legal delays, the FCA's working assumption is that lenders will begin processing complaints from mid-November 2026. Submitting your complaint now puts you in the earliest processing group.
Can I claim on behalf of a deceased family member?
Yes. The scheme covers agreements held by customers who have since died. Beneficiaries or personal representatives can submit a complaint on behalf of the deceased. Use the lender's complaint form and make clear you are claiming on behalf of someone else, including their name, date of birth and any agreement details you have.
Can I claim if my lender has gone out of business?
If the lender has been dissolved, a claim is not possible. If the lender is in administration or liquidation, you can complain to the administrator. Check the FCA register for the current status of the firm.
What if I already received compensation for the same agreement?
If you have already been compensated for a complaint covered by the scheme, you are excluded from claiming again for that agreement. If your complaint was rejected by the lender but you did not escalate to the Financial Ombudsman, you should be contacted by the lender and invited to opt in to the scheme.
Where do I find the FCA's complaint template letter?
The FCA's free template complaint letter is available at fca.org.uk/consumers/car-finance-complaints. The lender contact list is at the same page under the lenders tab.
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Primary Sources |
