The UK car finance market is under fire, and if you’ve taken out a finance agreement in the past 15 years, you might be owed compensation. But here’s a common question many are asking:
Do I need a solicitor to make a car finance claim?
The short answer is: no, you don’t need one. But with more than just commission-based mis-selling in the spotlight—including affordability issues and poor transparency—some people may benefit from legal support. Here’s how to work out what’s right for you.
Why Are Car Finance Agreements Being Investigated?
The scandal originally centred around discretionary commission arrangements (DCAs).
These allowed car dealers to increase the interest rate on your finance deal to earn themselves a higher commission, without telling you. The practice was banned in 2021, but millions of agreements made before that could be affected.
But that’s not the only issue under scrutiny.
Other Types of Mis-Selling to Be Aware Of
1. Inadequate Affordability Checks
Lenders are required to assess whether customers can realistically afford the finance they’re signing up for. If you were approved for a deal despite having limited or unstable income, or if the monthly repayments left you struggling financially, this could be a red flag.
2. Lack of Transparency
Did you understand the total cost of credit, or that a balloon payment was due at the end of a PCP deal? If key details weren’t explained, you may not have given informed consent.
3. Unfair Terms or Hidden Charges
Some agreements contained unclear terms, surprise fees, or harsh penalties. If your deal felt unfair or left you out of pocket unexpectedly, it’s worth checking whether it meets regulatory standards.
When Should You Consider Using a Solicitor?
There are cases where getting legal help can be useful, especially if:
- You’ve already had a complaint rejected by your lender
- You suspect multiple issues (e.g. undisclosed commission and affordability problems)
- You don’t feel confident handling the paperwork or gathering evidence
- Your case involves large sums of money or complex contract terms
- You’re short on time or feel overwhelmed by the claims process
Most legal firms and claims companies offer a “no win, no fee” service, but they typically take a cut of your compensation if you win.
Final Thoughts
You absolutely can make a car finance claim on your own. However, enlisting the help of a solicitor offers professional support and valuable expertise throughout the process. Moreover, if your situation is complex—such as dealing with multiple vehicles, affordability issues, or rejections from lenders—working with a solicitor can help navigate these challenges more smoothly and increase your chances of a successful claim.
