Were you mis-sold
car finance?

If you took out a PCP or HP car, van, motorhome, or motorbike finance agreement before October 2024 in England, Scotland or Wales and used the vehicle mainly for personal use, you may be eligible to claim:

• if you paid a discretionary commission, pursuant to which the lender motivated the dealership to charge you higher rates for the finance: this practice was banned in January 2021;
• if your finance agreement was unfair due to high commission (where the commission is equal to or greater than 39% of the total cost of credit and 10% of the loan); or
• your finance agreement was unfair due to a tied commercial relationship between your lender and the dealership from which you bought the vehicle which gave the lender exclusivity or a 'right of first refusal'. Find out more information on eligibility here.

If your claim is successful, we will charge:

• 30% + VAT, up to a maximum of £420, of compensation between £1 and £1,499;
• 28% + VAT, up to a maximum of £2,500, of compensation between £1,500 and £9,999;
• 25% + VAT, up to a maximum of £5,000, of compensation between £10,000 and £24,999;
• 20% + VAT, up to a maximum of £7,500, of compensation between £25,000 and £49,000; and
• 15% + VAT, up to a maximum of £10,000, of compensation above £50,000.

Parker Kerrigan is a London-based litigation firm recognised for its specialism in complex, large-scale group actions. By choosing Parker Kerrigan, you benefit from:

Certainty. Although the FCA's proposals require lenders to try to trace customers, there is no certainty your lender will locate you — particularly if you have moved, changed your name, or your agreement concluded more than six years ago. If no contact is made within 12 months of the start of the scheme, you will lose your chance to claim.

Speed. The FCA has stated that consumers who complain before the redress scheme commences are likely to receive redress sooner.

Less hassle. You do not need your old paperwork. We manage the entire process for you, using technology to identify your claims, submit them, make representations, and distribute compensation.

Verification & accountability. The proposed calculation methodology is complex. We can check the lenders' calculations and require disclosure of the underlying information to ensure you receive the correct redress.

Legal expertise. We have in-depth knowledge of the laws and regulations surrounding motor finance claims.

Stronger and alternative claims. If a lender denies wrongdoing or doesn't offer enough, we can challenge the decision — including arguing for a higher rate of compensatory interest, raising irresponsible lending claims, checking how interest was calculated, and seeking disclosure of commissions on insurances such as GAP, paint and alloy wheel insurance.

Risk-free. No upfront costs. Most clients pay 28–30% (plus VAT) of their compensation. It remains possible to claim yourself without charge.

Multiple claims. We can handle all your claims, even if you borrowed from multiple lenders, and even if some agreements date back as far as 2007.

The practices giving rise to motor finance claims were current between 2007 and 2021 (in the case of discretionary commissions — banned by the FCA in January 2021 after a review begun in 2016) and up to October 2024 (in the case of very high undisclosed fixed commissions and undisclosed tied commercial relationships).

In January 2024, the FCA began a major investigation into hidden commissions in motor finance agreements. As a result, motor finance complaint handling was paused until 31 May 2026, and many consumers are now coming forward. On 30 March 2026, the FCA confirmed the details of an industry-wide redress scheme. Legal challenges to that scheme mean it will likely begin in late 2026, with redress payments commencing in early 2027.

At this stage it is hard to estimate what claims may be worth, and we stress that not all claims will automatically succeed. Claims will turn on their own facts.

If you are entitled to compensation, the FCA expects consumers to receive an average of £829 (inclusive of interest), with many customers receiving more and a large number less. Given the popularity of PCP / HP agreements, and since the claim period goes back to 2007, many clients will have more than one claim.

In 2017 the FCA's evidence drawn from 16,000 contracts found the average overcharge as a consequence of Discretionary Commission Arrangements was £1,100 on a £10,000 loan. Factors affecting the value of your claim include the rate of interest payable, the date of your contract and the size of your loan. Some of the proportionally highest commissions were charged on relatively small loans — there isn't always a direct relationship between contract value and claim size.

Some lenders motivated dealers to increase your interest rate to earn commission — without telling you. These undisclosed arrangements (Discretionary Commission Arrangements / Difference-in-Charge commissions) were banned by the FCA in January 2021. If you were affected, you are likely to be entitled to compensation.

Other lenders paid excessively high fixed commissions — the FCA has decided redress is payable where commission was equal to or greater than 39% of the total cost of credit and 10% of the loan. Others had tied commercial relationships with dealerships giving them exclusivity or a right of first refusal. This practice also led to consumer detriment.

Duration varies. When the FCA redress scheme begins, which is likely to be in late 2026, lenders are expected to contact existing complainants within 3 months or within 5 months, depending on the date of their agreement, with a provisional redress decision. Lenders are also expected to contact previous customers whom they believe they may owe money within 6 months, asking them if they wish to opt in to the scheme.

Once the scheme begins and lenders make contact, complainants will have one month to accept or challenge a redress offer and should receive payment within one month of acceptance.

Early-days delays are likely while administrative processes are tested. Complex cases will take longer. Complaints that sit outside of the scheme can proceed as normal.

'Mis-selling' is something of a misnomer. These claims arise from hidden commissions that made motor finance more expensive than it should have been. The hidden nature of the commissions means you cannot know if you have a valid claim without first obtaining disclosure of what commissions, if any, your dealership received from your lender.

You may have a valid claim if your interest rate was higher than necessary; the dealer or broker earned a commission but did not disclose it; you were charged a high commission (39%+ of the total cost of credit and 10% of the loan); or there were contractual ties giving a lender exclusivity or right of first refusal.

As part of instructing us, we will write to your lender and make enquiries as to the full circumstances of your agreement.

Because these are claims concerning undisclosed commissions, you cannot know (and nor can anyone tell you) whether you have a valid claim without first checking with your lender.

The FCA's redress rules state that lenders should write to all affected consumers (if they can contact them) within 6 months of the beginning of the redress scheme (or within 3 or 5 months, depending on the date of the relevant agreement, if a consumer has already made a claim).

We anticipate that many consumers may miss out though. Consumers may not receive correspondence informing them they have a claim; others may miss out because they may have to take an active step in order to receive compensation.

The FCA has suggested that consumers should not delay in making a complaint if they consider they are eligible, and says that early complaints will be resolved sooner than later complaints.

Although a model letter published on the FCA's website suggests consumers should provide lenders only with their current and past addresses and registration number, that of course assumes that the consumer knows who their lender is. The FCA has previously stated that to make a claim yourself without charge you will need to check to see if you can find a copy of your finance agreements. You could try checking old bank statements, as the lender should be named there; you can ask the dealer from which you purchased the vehicle for details; or, if the agreement was within the last 6 years, you can check your own credit file. The FCA points out that the Information Commissioner's Office ('ICO') has information on how to obtain one's credit file here. The ICO gives guidance as to how to make a Data Subject Access Request ('DSAR'), and also notes that most of the credit checking agencies have a facility for people to access their own file without making a formal DSAR.

Or we can do this for you.

Yes — if you do nothing, you may be contacted by your lender, or you can proactively claim using free template letters from sites like Resolver and MoneySavingExpert, or by following the FCA's guidance.

However, claims could become complex if: you've had multiple agreements; your lender cannot trace you; you no longer have your paperwork; the lender refuses to disclose full commission details or denies the claim; or you don't trust lenders to lead a redress process fairly when they acted against your interests in the first place.

Choosing Parker Kerrigan means you're backed by a team of financial claims experts who manage the whole process — from verifying eligibility to challenging lenders — so you don't have to.

If you need assistance, our team is here to help. Contact us via info@parkerkerrigan.co.uk or call us on 0330 330 1000 and one of our team will be in touch.