Bought a car on finance and now feel like you were taken for a ride? You’re not alone — and good news, you don’t have to just live with it.
In 2025, claiming money back from mis-sold car finance is more common than ever. And yes, you might be owed a refund too! Whether you were confused by the paperwork, didn’t know about commissions, or just feel something wasn’t right, this guide is your new best friend.
So grab your drink of choice, get comfy, and let’s dive into the world of car finance claims — step by step.
What is a Car Finance Claim?
Let’s keep it simple. A car finance claim is when you say, “Hold on a second, I wasn’t given all the facts before signing that car loan.”
Usually, this means:
- You didn’t know the dealer or broker earned a commission from your deal.
- The finance plan wasn’t explained properly.
- You weren’t told about better, cheaper options.
- You didn’t understand how the interest worked (and they didn’t bother explaining it).
It’s like being charged for a luxury meal, only to find out you’ve been served the kids’ menu. Not fair, right?
Who Can File a Car Finance Claim in 2025?
You might be thinking, “Is this for me?” Well, let’s find out. You can probably file a claim if:
- You bought your car using Personal Contract Purchase (PCP) or Hire Purchase (HP).
- The finance agreement was made between 2010 and 2020.
- You weren’t told about commission or interest properly.
- The deal felt rushed, pushy, or confusing.
- You were told, “It’s the only option available” (when it wasn’t).
If you’re nodding along, there’s a good chance you’ve got a claim.
What’s Changed in 2025?
Why is everyone suddenly talking about car finance claims? Here’s the deal:
In recent years, the Financial Conduct Authority (FCA) introduced stricter rules for car finance providers. They’ve cracked down on shady practices like hidden commissions and lack of transparency.
Now in 2025:
- Claims are easier to file.
- More people are eligible.
- Deadlines are clearer (though you shouldn’t wait too long!). This means you’ve got a real shot at getting some money back — if you act soon.
What Documents Do You Need?
Before jumping into the process, gather your paperwork. Don’t worry — it’s not as scary as it sounds.
Here’s what you’ll need:
- Your car finance agreement (the big one).
- Proof of payments (bank statements work).
- Any emails or letters from the dealership or lender.
- Notes from your purchase (if you remember anything fishy, jot it down).
Hot tip: Even if you’re missing a few documents, you may still be able to claim. Just don’t throw anything away.
Step-by-Step Process to File a Car Finance Claim
Now the good stuff — how to actually file your claim.
- Step 1: Spot the Problem
Think back. Were things clearly explained? Did the monthly cost seem weirdly high? Were you rushed to sign the paperwork?
- Step 2: Collect Your Evidence
Get all the documents we mentioned above. The more, the better. It's like prepping for a quiz — you want to show your work.
- Step 3: Contact the Lender
Write a complaint letter or email. Keep it polite but firm. Say why you believe the finance was mis-sold and ask for compensation.
- Step 4: Wait for Their Reply
They have up to 8 weeks to get back to you. Yes, that’s a long time, but it’s the official waiting period.
- Step 5: Escalate If Needed
No reply or not happy with their answer? Time to contact the Financial Ombudsman. They’ll look at your case independently — and they’re free.
- Step 6: Sit Tight and Stay Hopeful
Once the Ombudsman takes over, it’s a bit of a waiting game. But many people end up getting thousands back.
Should You Use a Claims Company?
You’ve got two options: Do it yourself or hire a claims company. Let’s compare.
Doing it Yourself
Pros: Free, you stay in control, less chance of being scammed.
Cons: Takes time and effort.
Using a Claims Company
Pros: They do the heavy lifting.
Cons: They’ll take a big chunk of your payout. Some even charge upfront. And yes, some are dodgy.
If you’re confident using email and can follow steps, you can totally do this on your own.
How Much Money Could You Get?
Every case is different, but here’s a rough idea:
- Some people get a few hundred pounds back.
- Others? Thousands.
It depends on how bad the mis-selling was, how much interest you paid, and how long the finance lasted.
Either way, wouldn’t it be nice to have that money in your pocket instead?
Common Mistakes to Avoid
Here’s how not to shoot yourself in the foot:
- Don’t ignore your gut feeling. If something felt wrong, it probably was.
- Don’t throw away your paperwork.
- Don’t wait too long — time limits may apply.
- Don’t trust every ad on the internet. Some “claims companies” are more scammy than helpful.
Play it smart, not sorry.
Final Thoughts
If you bought a car on finance and something didn’t sit right, don’t just shrug it off. The rules in 2025 are finally on your side. Filing a car finance claim might seem like a chore, but it could lead to a nice refund — and a bit of justice too.
So take the wheel, follow the steps, and don’t leave your money in the rearview mirror.
Got questions? Drop them in the comments or shoot over a message — we’re here to help!
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