A car finance agreement may be considered to have been mis-sold if one or more than one of the following applied:

• Your car dealer increased your interest rate to earn more commission and did not tell you
• Your dealer earned a high commission from lenders but didn’t tell you
• Your dealer operated a secret tie with a lender

In March 2026, the Financial Conduct Authority (FCA) announced an industry-wide redress scheme designed to compensate consumers who have been disadvantaged by car finance mis-selling.

We are expecting lenders to start issuing settlement offers for eligible claims from mid-2026, likely from September onwards. The timing of your settlement will depend on various factors including when your claim was submitted and whether or not your agreement was taken out before or after 1st April 2014. The timescales are set out by the Financial Conduct Authority. Elmwood Law has no control over this. Based on the current information supplied by the FCA, we expect most consumers who complain before 30 June 2026 to receive redress before the end of 2026. Not all agreements will be eligible.

The Financial Conduct Authority have announced that the average compensation for each eligible agreement will be £829.00. Not all agreements will be eligible for compensation. The amount you receive will depend on the circumstances of your own particular loan agreement(s) and could be more or less than £829.00. If you have more than one eligible agreement, you could get more than one payout.

Loan agreements taken out for motor finance between 6 April 2007 and 1 November 2024 may be eligible for compensation. However, not all loan agreements will be eligible. The Financial Conduct Authority have published detailed rules which establish whether or not you will receive redress.

Yes, you are still potentially eligible for compensation even if you no longer own your vehicle or have repaid the loan.

Elmwood Law Ltd operate “a no-win, no-fee policy”. Full details of this policy, and our success fees, are shown on our website:

https://elmwoodlaw.com/no-win-no-fee-policy/

There is no age limit to make a claim.

Yes, non-UK residents are eligible to make a claim.

Under a Discretionary Commission Arrangement (DCA), the car dealer was able to choose to take a higher amount of commission. This higher amount was paid for by the consumer by way of a higher interest rate on the loan. DCA was banned by the FCA in 2021. Under a fixed commission arrangement, the car dealer is unable to do this.

As an SRA-regulated law firm, we complete appropriate client identity checks before acting. Further identity checks may be required to complete claim registration with some lenders and to help progress your claim as efficiently as possible. Where required, providing ID promptly can help avoid delays in the lender reviewing your claim or making any payment due.

Vehicles purchased on PCP or HP finance with an APR above 0% and with an agreement start date between 6 April 2007 and 1 November 2024. Not all agreements will be eligible for redress.

You usually have six years from when you took out the finance, or three years from when you first became aware there might be a problem. Special criteria will apply to the FCA redress scheme, so you may be eligible for compensation even if you bought your car as long ago as 2007. It is best to start your claim as soon as possible.

You can make a claim yourself to your lender and, if the lender rejects your claim, you can go to the Financial Ombudsman at no cost.

Alternatively, you can use a specialist such as Elmwood Law Ltd to pursue your claim on your behalf.

No. You can make a complaint yourself, without cost, directly to your lender(s).

We will keep you informed about any developments. You can also stay up to date by logging into our Secure Client Portal here:

https://portal.elmwoodlaw.com/signin

Yes, you can cancel your claim at any time. If you cancel within the 14-day cooling-off period, no fees will be charged. However, fees may apply if you cancel after that time, to reflect the work we have done.

Not all loan agreements are eligible for compensation. If your claim is incorrectly rejected, then Elmwood Law can appeal to the lender or to the Financial Ombudsman on your behalf.

Yes, please contact our customer care team on 0151 316 0490.