Car finance claims have been likened to the PPI scandal, but who really has an advantage? Consumers or claims professionals? Millions of motorists could have overpaid on vehicle agreements due to undisclosed commission arrangements. In these cases, lenders paid brokers or dealers extra incentives to increase interest rates, a practice banned by the Financial Conduct Authority (FCA) in 2021 [1].

Claims have flooded in from drivers ever since, all looking to recoup years of overpaid interest and fees. In theory, it should be simple: ensure that consumers get fair redress for financial harm done to them. In practice, of course, past mass-claim work has shown that legal costs, admin charges and funding fees [2] often eat up a large part of the pot. This has led to concerns that consumers who make their claim through certain avenues will get much, much less.

📌 Key Insight:

A new nationwide poll conducted by Find Out Now for consumer law firm Slater and Gordon [3] has shown that a substantial majority of the public has confidence in the FCA to sort out the car finance scandal fairly, suggesting that drivers could be receptive to a regulatory solution instead of expensive litigation.

The survey results suggest that some consumers may feel confident navigating the claims process through direct channels, while others may still opt for professional representation if they value convenience, support, and expert handling over maximising the final payout.

Why Some People Still Choose Professional Help

Some advice you might hear is: “Don’t use a claims management company, just use the free templates online.” And it’s true, anyone can complain directly to their lender or the Financial Ombudsman Service. However, even the free route still requires you to provide enough details for the lender to trace your agreement. In older cases, some lenders have admitted that records have been deleted or are incomplete.

If you’ve moved home multiple times, financed vehicles through more than one lender, or can’t remember who provided your finance many years ago, finding that information can be challenging. Missing paperwork or unclear account details can cause delays, or even result in the lender saying they cannot locate your agreement.

In such cases, some people choose to work with a finance claims expert or professional services that can search historic finance records using basic personal details. For those who want to ensure no potential claim is missed, especially when documentation is limited, having that additional support can make the process smoother and less time-consuming.

Users have reported various advantages when they make use of a Claims Management Company (CMC).

• Locating all past agreements and their details, even if lenders no longer hold the data;
• Making sure no agreement goes uninvestigated;
• Obtaining the best possible compensation to which you are entitled;
• Rejecting unfair or low settlement offers from lenders;
• Handling everything from beginning to end; and
• Identifying other types of mis-selling that consumers might not have been aware of.

On the other hand, fees for these services can be substantial. In some cases, consumers have seen payouts reduced by more than a third once deductions are applied. That has led to calls for more transparency around costs and for consumers to be fully informed before signing up for representation by solicitors or PCP claims management companies.

Andrew Franks of Reclaim247 defended his company’s approach, noting that fees charged by claims firms are comparable to going directly through a solicitor. 

“We do not charge more than if you had used a solicitor. However, because we work with a panel of solicitors, we can recommend the one best suited to your claim, whether that depends on jurisdiction, claim value, or lender,” he explained.

Franks added: “We work very closely with Bott & Co. Whether you approached them directly or used our free claim checker, which helps identify all your historical agreements, both options operate on a no-win, no-fee basis, and the deductions would be identical.”

While free resources from the FCA and consumer advice bodies outline how to make a claim independently, and these can be a useful starting point, professional help from solicitors or CMCs remains a viable choice for those who value having the process handled end-to-end.

A Changing Legal Landscape

The Civil Justice Council (CJC) has launched a review into third-party litigation funding [4], the financial engine behind many large-scale UK claims. There are concerns that the claims process has become too commercialised, with consumers potentially losing a substantial share of compensation to legal costs. But the car finance scandal has reached a pivotal stage and many drivers may not yet realise that they too could have a claim.

Looking Ahead

The Supreme Court ruling [5] and the outcome of the FCA’s October 2025 consultation [6] will decide if reforms will be introduced. Proposals include improving alternative dispute resolution schemes to make them more effective, accessible and less dependent on costly court action.

In the meantime, consumers should consider the pros and cons of each method, whether it be making a claim themselves, using a solicitor or using a CMC. The key is to be aware so that when the time is right, drivers can make their claim in the manner most appropriate to them, retaining as much of their compensation as possible.

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1. FCA banned discretionary commission models - https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models
2. legal costs, admin charges and funding fees of the claims process - https://www.thetimes.com/business-money/economics/article/uk-litigation-boom-mainly-benefits-lawyers-insurers-and-funders-dpk6n9j8n
3. nationwide poll conducted by Find Out Now for consumer law firm Slater and Gordon - https://www.slatergordon.co.uk/newsroom/consumers-trust-the-financial-conduct-authority-to-resolve-the-car-finance/
4. Civil Justice Council (CJC) has launched a review into third-party litigation funding - https://www.solicitorsjournal.com/sjarticle/civil-justice-council-announces-review-of-thirdparty-funding
5. Supreme court ruling  - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
6. FCA’s October 2025 consultation - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme