The car finance scandal has shown how widespread mis-selling has been in the UK. For years, some dealerships and lenders added hidden commissions and inflated interest rates without properly explaining them to customers. Many people only discovered this recently and now want to know how far back they can go to make a claim.

Yes, if you are asking "how far back can I claim for car finance?" The short answer is: quite far. You can bring a car finance claim for any agreement taken out between 6 April 2007 and 1 November 2024. Even if you’ve long since paid off the loan or sold the vehicle, you could still be entitled to a refund.

Which Years and Finance Types Are Covered?

The Financial Conduct Authority (FCA) has proposed a redress framework covering agreements from 6 April 2007 to 1 November 2024 [1]. During those years, many dealers worked under what was called a Discretionary Commission Arrangement (DCA). In simple terms, this allowed them to raise your interest rate so they could earn a bigger commission from the lender. The practice was banned in 2021 [2], but not before millions of customers were affected.

The FCA’s scheme focuses on regulated forms of finance, mainly:

• Personal Contract Purchase (PCP)
• Hire Purchase (HP)

Both fall under the Consumer Credit Act, which means drivers can seek compensation if the deal was unfair or mis-sold.

Leased vehicles, such as those on Personal Contract Hire (PCH), are not included. These are treated as hire agreements, not credit agreements, and so sit outside the FCA’s scheme.

Am I Likely to Be Affected?

If you’re unsure whether your agreement qualifies, use this quick checklist to see if you could be covered.

1. Vehicle type

You can claim if the finance was for a car, van, motorbike, or campervan.The scheme does not include caravans or other non-motor vehicles.

2. Date of your agreement

Your finance must have started between 6 April 2007 and 1 November 2024. Although DCAs were banned in 2021, the FCA has expanded its review to include other forms of mis-sold car finance that happened after that date.

3. Type of finance

Only PCP claims and HP claims are covered. Personal Contract Hire does not qualify because it’s a rental, not a loan.

4.Purpose of the vehicle

The scheme covers vehicles used for personal use, commuting, or small-business purposes as long as the loan was for a vehicle under £25,000. Cars bought through limited companies or corporate fleets are excluded.

5. Ownership status

You can still make a claim if the finance is settled, the car was sold, or it was repossessed. What matters is whether the agreement was mis-sold, not whether you still have the vehicle.

6. Multiple agreements

If you’ve had several car finance deals, you can claim for each one individually. Each agreement will be reviewed on its own merits.

7. Interest-free finance

If your deal was genuinely 0% interest, you probably won’t qualify because there was no overpayment to refund.

If you’re still unsure, a car finance refund check or car finance eligibility checker can confirm whether your agreement falls within the FCA’s scope.

The Car Finance Claims Deadline

The FCA has extended its consultation on the Motor Finance Redress Scheme to 12 December 2025 [3]. The aim is to give lenders, consumer groups, and claims experts more time to finalise how compensation will be handled.

Here’s the current timeline:

Consultation period: October to 12 December 2025

Pause on complaint responses lifted: 4 December 2025 [4]

FCA publishes final rules: Early 2026

Lenders issue final responses: By 31 July 2026

First payments released: From late 2026

If you’re wondering how long car finance claims take, most PCP and HP claims should move forward between December 2025 and July 2026, with payments following afterwards. There’s currently no formal car finance claims deadline, but submitting your complaint now means it’s logged early and ready when reviews begin.

How to Make a Car Finance Claim

You don’t need to wait for the FCA to finish its process before acting. Complaints sent now will automatically be carried forward once the new framework begins.

Step 1: Gather what you can

Start by collecting the basics such as your car registration, the name of your lender, the dealership you bought from, and roughly when you took out the agreement. If you can’t find your original paperwork, don’t worry. Old bank statements or your credit report can usually confirm who provided the finance. Even a few details are enough to get your claim started.

Step 2: Write your complaint

Be simple and honest with your message. Tell your lender you were not given a commission and your interest rate was higher than expected. You need no legal jargon. Just say what happened and ask them to read your agreement and refund any unfair costs incurred.

Step 3: Send it off

Once your complaint is ready, send it straight to your lender. They should acknowledge it within a couple of weeks. Because of the FCA’s temporary pause, you won’t get a final response until after December 2025, but your complaint will stay active and on record.

Step 4: Keep everything safe

Save copies of every letter, email, or document you send and receive. When the FCA releases its final guidance in 2026, your case will automatically move forward for review. Having your notes and dates to hand will make things easier later.

Rather not deal with the paperwork yourself? Use an FCA-authorised claims management company for car finance claims and PCP claims. They can trace old finance records for you, prepare your complaint and contact your lender on your behalf.

How Much Compensation Could You Receive?

The FCA hasn’t released fixed figures yet, but early reports suggest the total redress could reach £8–9 billion. The average payout may be around £700 per agreement [5], although larger loans or multiple vehicles could increase that amount.

Why It Helps to Act Now

The official process may not start until 2026, but there’s a clear benefit to acting early. Complaints submitted now will already be in the system when lenders begin reviewing them.

Filing your complaint now means:

• You’ll be near the front of the queue when reviews begin. Your lender’s records will still be easy to retrieve.
• You avoid the rush when thousands of others start claiming later.

The Bottom Line

You can bring a mis-sold car finance claim for agreements taken out any time from April 2007 to November 2024. The FCA’s upcoming scheme will cover PCP and HP claims, helping drivers recover money lost to hidden commissions and unfair interest rates.

If you had car finance during that period and were not told how your rate was set, it’s worth checking if you qualify for compensation. With the FCA’s consultation running until 12 December 2025 and final decisions expected throughout 2026, now is the time to get your complaint ready and make sure your case is included.

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References:

1. The Financial Conduct Authority (FCA) has proposed a redress framework covering agreements from 6 April 2007 to 1 November 2024 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. The DCA practice was banned in 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
3. The FCA has extended its consultation on the Motor Finance Redress Scheme to 12 December 2025 - https://www.fca.org.uk/news/statements/motor-finance-compensation-scheme-consultation-progress-and-timing
4. Pause on complaint responses lifted: 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. the total redress could reach £8–9 billion. The average payout may be around £700 per agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-schem