Did you buy a car on finance between 2007 and 2024? You could be owed thousands of pounds in compensation
Time is running out to check what you may be owed. It's estimated that millions of UK motorists who took out PCP or Hire Purchase agreements could be in line for a refund.
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11/06/2026
By Jamie Cox
What's happened?
In a landmark ruling, the Financial Conduct Authority (FCA) has confirmed what thousands of UK drivers had long suspected: lenders and car dealers were quietly profiting from hidden commissions baked into car finance agreements — often without the buyer ever being told.
The practice, known as a Discretionary Commission Arrangement (DCA), allowed dealers and brokers to raise the interest rate on a customer's finance deal in exchange for a larger commission from the lender. The higher the rate they could push, the more they pocketed.
Major lenders involved include Black Horse, Santander Consumer, BMW Financial Services, Volkswagen Financial Services, Close Brothers, FirstRand Bank, Moneybarn and many others.
Why does this matter?
For more than a decade, ordinary drivers across the UK were quietly paying inflated interest rates on cars they bought in good faith. In many cases, the dealer claimed to be "shopping around" for the best deal, when in reality they were tied to a single lender willing to pay them the biggest cut.
The FCA estimates average payouts of around £829 per agreement, with approximately 12.1 million agreements potentially eligible and a total redress pot of around £7.5 billion. Some motorists have already won significantly more in court — with individual payouts running into the thousands, depending on the size of the loan, the rate charged and the commission taken.
If you bought a car on PCP or Hire Purchase finance between 2007 and 2024, there is a real chance you were overcharged — and you may now be entitled to claim that money back.
Could I be eligible? How do I find out?
Reclaim247 has already helped over 700,000 UK customers check whether they have a valid car finance claim — and is rated "Excellent" 4.8 out of 5 on Trustpilot, with more than 8,650 verified customer reviews.
If you have never checked your eligibility, you can do so now in just a few minutes — with no paperwork and no obligation.
You may be eligible if:
You took out a PCP or Hire Purchase agreement on a vehicle between 6 April 2007 and 1 November 2024
The agreement was with one of the major UK motor finance lenders and the commission paid to the dealer or broker was not clearly disclosed to you.
Even if you have since sold the car, paid off the finance, or no longer have the original paperwork, you may still qualify.
Check if your claim could be vaild now
How to check in just a few seconds
You simply enter a few basic details into Reclaim247's online claim checker. Their system connects with major credit reference agencies and vehicle registration databases to help identify finance agreements linked to your name — even if you have moved house or changed your details since.
You do not need to dig out old paperwork. You do not need to remember the dealership or the exact APR. The system does all the heavy lifting for you.
It does not matter if you part-exchanged the car, settled the deal early, or had the agreement with a lender that has since stopped trading — you may still be able to claim.
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How the process works
Reclaim247 works with a panel of specialist UK law firms that focus exclusively on motor finance mis-selling cases. They operate on a No Win, No Fee basis* meaning if your claim is unsuccessful, you pay nothing
It's a straightforward 3-step process:
Check your eligibility. Complete the short online form to see whether your finance agreement may qualify under the FCA's redress criteria.
Submit your details. If you appear to qualify, the form will guide you to the next stage. You will be asked for some basic personal information so the panel solicitors can locate your historic agreements.
Let the experts handle it. Once your claim is submitted, Reclaim247's panel solicitors review your agreements, gather the evidence, and negotiate directly with the lender on your behalf. You don't have to do anything else.
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Why use Reclaim247?
Reclaim247 is one of the UK's most established car finance claims specialists, with over 700,000 customers helped and an "Excellent" 4.8-star Trustpilot rating from more than 8,650 reviews — making it one of the highest-rated claims companies.
From the moment you submit your details, their team takes care of the process: tracing your historic finance agreements, gathering supporting evidence, preparing the claim documents, and dealing with the lender directly. You are kept informed at every stage, so you always know where your claim stands.
So if you bought a car on PCP or Hire Purchase between 2007 and 2024, there's a strong chance you were overcharged — and you could be entitled to a refund.
Frequently asked questions
How much could I claim?
The FCA estimates average payouts of around £829 per agreement, although the final figure depends entirely on your individual circumstances — including the size of your loan, the interest rate charged, the commission paid and the outcome of the assessment. Some claimants have received considerably more; others may receive less. No outcome can be guaranteed.
Do I have to pay anything up front?
No. Reclaim247's panel solicitors operate on a No Win, No Fee* basis. You pay nothing unless your claim is successful. If it is, a success fee of between 18% and 36% including VAT applies, depending on the level of redress secured. A cancellation fee may apply if you withdraw outside the 14-day cooling-off period. All fees are clearly explained before you proceed.
What documents do I need?
In most cases, you don't need anything to start. Reclaim247's system can identify finance agreements linked to your name using credit reference data. If your claim progresses, helpful (but not always essential) documents include:
● the original finance agreement,
● the dealership invoice or sales receipt,
● the vehicle V5C logbook,
● any statements from the lender,
● proof of identity and address.
Do I have to use a claims company?
No. You have the right to pursue a motor finance mis-selling claim directly with your lender free of charge. If you are not satisfied with their response, you can escalate the matter to the Financial Ombudsman Service or take part in the FCA's industry-wide redress scheme — both at no cost to you. Using a claims management company is optional. While Reclaim247 will always work to secure the maximum compensation available, there is no guarantee you will receive more than you could obtain by claiming on your own.
This page is for informational purposes only. Eligibility for compensation and the amount payable depend on the individual circumstances of each case and the outcome of the assessment. Participation in any claims process is voluntary and subject to verification. No outcome is guaranteed and you should review all terms and conditions on Reclaim247's website.
*No Win, No Fee: You pay nothing unless your claim is successful. A success fee between 18% and 36% including VAT applies on successful claims, depending on the level of redress secured.
Check if your claim could be vaild now