Mis-sold car finance has been rampant among car finance purchases lately, especially in the UK. This is brought about by different mis-selling tactics that have been commonly practiced by a lot of financing companies which when discovered, caused a lot of disarray in the car financing industry. If you believe you might have been mis-sold, then time is crucial, and there’s no better time to act than now. The earlier you’re able to start your claim, the higher your chances of success. 

Given the Supreme Court ruling in July 2025, and with the Financial Conduct Authority working out its next steps, consumers are put in a unique position to qualify for potentially thousands of pounds to claim. Here, we’ll walk you through the entire process, what to expect, and why it’s critical to move in a speedy manner, considering how it can be beneficial in helping you stay ahead of the upcoming legal and regulatory shifts. 

What Is a Mis-Sold Car Finance Claim?

A typical mis-selling occurs when finance providers are not able to fully disclose the commission structures, their risks, and the other options that may be available for consumers to explore. If you took out a car loan, such as a PCP (Personal Contract Purchase) or HP (Hire Purchase) deal, then there’s a high chance you are owed compensation too. 

Why the Rush?Legal Updates for 2025

The car finance scandal which caused Discretionary Commission Arrangements (DCA) to be banned since 2021, has now been a long-standing issue that has undergone numerous reviews and scouted opinions from different experts relevant in the field. As for 2025, we can expect the UK Supreme Court to rule on a landmark mis-selling case by July. This will set the precedent for all future claims. 

Post-ruling, the FCA has expressed its plan to review and potentially revise the initial guidance it had on how lenders are instructed to handle complaints. Should the ruling in July favour consumers, then it could spark a new wave of claims, but this time probably with stricter deadlines and procedures to follow. Still, the sooner you file your claim, the better chances you get of benefiting from this current, more flexible complaint approach. 

1. Why Timing Matters for Mis-Sold Car Finance Claims

Most consumers who have been affected by these mis-selling tactics are still hesitant to begin their claims as they still see the process to be daunting. Regardless of how much you can get for mis-sold car finance, many consumers feel that there’s no way to claim refunds or that it would require extensive expertise. Also, you might perceive it as a process that involves countless paperwork and full legal complexity. While this may be true at a point, denying your right to make a claim shouldn’t be your last resort either. If you choose to delay the claim, it may cause you more burden, especially in light of the upcoming regulatory changes that may happen in 2025. Here’s why timing is crucial:

Even strong claims take time to resolve

All mis-sold car finance claims follow a certain structured process, and typically it involves allowing your lender a maximum of eight weeks to respond to your complaint. However, in relevance to the ongoing review by the Supreme court, and the pending FCA decision, this 8-week window is temporarily on hold. But in case you receive an unsatisfactory outcome or get your claim rejected outright, then you can still escalate the case to the Financial Ombudsman Service (FOS). A secondary review like this will often take three to six months to resolve and in some cases can take longer depending on how complex and high volume the case is. 

Even if you have a strong claim, if you weren’t able to file it right away, then it can still take you several months before earning a resolution. With major legal developments on the pipeline, time is crucial if you want to achieve success on your claim. The longer you wait to start your case, the greater the risk your claim will fall behind in this queue of mis-selling cases which are either handled by the FOS or the Financial Conduct Authority (FCA). 

Waiting Could Mean Getting Caught in a Backlog

Cases elevated to the Supreme Court, once set with a ruling, often lead to a surge in public awareness. This means thousands of consumers will suddenly feel the need to take action, especially with a ruling to support them. This wave of new claims can lead to potential delays in mis-sold car finance compensation claims, as lenders and the Financial Ombudsman will have more cases to work on. 

If you wait for the ruling before filing a car finance claim, then chances are, you might fall into the group who’ll have to wait more months, before a decision is awarded, not only because there is a tedious review on all mis-selling cases, but also because there will certainly be more cases filed, and there’s a possibility the queue may get unbearably long. 

You may feel overwhelmed to start

Starting anything can feel overwhelming, especially if it’s something that involves disputes. At some point, you may feel as if you’re battling something that’s only causing you stress. This can also happen in instances where you don’t know the steps or don’t have the right documents to support your claim. Some hesitate even more because they believe their case isn’t “strong enough”. But you have to know that you do not need to do it all on your own. There are many claim management companies that are experts in gathering paperwork and assessing the strength of your case. They can also communicate with the lenders and regulators to add brevity to your claim and urgency to lenders. 

Don’t worry as you can still change your mind, however claim management companies can assure that your case has wheels, and the odds are favourable to you, should conditions arise. 

The 2025 Legal Turning Point

A legal turning point towards the landmark case on the car financing scandal will dictate and redefine the way car finance mis-selling is perceived and acted upon in the UK. Lenders and regulators will have to adjust to the sweeping impact the July 2025 ruling will pose. In response, the Financial Conduct Authority (FCA) will set new guidelines to ensure there are enforceable implementing rules and regulations. 

Simply put, the process may be tweaked in a few months' time, and delaying your claim application only puts you at risk of your claim being reviewed under a less favourable framework. If you don’t act now, you might miss the window of opportunity to act with a flexible system that favours you. 

The Advantage of Acting Now

Acting now can be beneficial for you as a consumer. By positioning yourself ahead of these upcoming regulatory changes, you are able to give yourself more time to gather the evidence needed and tap professionals who are able to help ensure your claim qualifies under the current standards. 

Here, it’s not just about beating delays, but maximising your rights as a consumer, and taking advantage of what’s available for your perusal. The earlier you begin, the more likely you are to secure compensation without being restricted by any overwhelmed system or legal uncertainties that may suddenly arise. 

2. What is the Average Claim Timeline? 

A mis-selling claim itself is overwhelming, much more not knowing what to expect. This is why it is important to know the timeline of mis-sold car finance claims. This will help set realistic expectations and reduce the anxiety you experience over waiting and figuring out if you did the right steps or missed something that’s causing the delay. The question we always have is, how long does a mis-sold car finance claim take? Most mis-selling claims take around six (6) to sixteen (16) weeks to resolve. However, it will still largely depend on the lender and the regulators, as their response time is crucial in a claims timeline. The evolving legal landscape of 2025 can change this waiting time and ease it to ensure better response time on these mis-selling claims. As for now, here’s what to expect when you file a claim:

The Initial Review

After submitting your mis-sold car finance claim to your lender, they are given up to eight weeks to respond, and this guideline on the response time is set by the Financial Conduct Authority (FCA). As prescribed, this period is considered an enough amount of time for lenders to assess the complaint, review it thoroughly and conduct any necessary internal reviews that will allow them to provide a decision on whether to uphold the complaint and offer compensation, or simply reject it and provide you with a letter to explain rejection. 

If the lender upholds your claim, then you can expect to receive the compensation just weeks after their decision has been made. This duration can run from 6 to 10 weeks, depending on the case’s status. Most straightforward cases get resolved with compensation easily, especially those that show accurately the figure lost due to mis-selling. But there are other forms of compensation too, such as adjustments on balances, especially for existing contracts. 

Escalation to the Ombudsman

As much as it is wanted, not all claims can be resolved within the eight-week window. There are many cases that are rejected by lenders or issued with compensations that feel unfair to the customer. If this is the case, then your next course of action is to escalate to the Financial Ombudsman Service (FOS) – a specific body that deals with and reviews financial disputes that arise between consumers and lenders. 

Once a case is escalated to the FOS, this would extend the waiting window by another 2 to 3 months. Complex cases may even take longer as it will require more time from the FOS to conduct a review considering the queue. Generally, it's recommended to assume 3 to 6 months for a claim to be completed after it is escalated to the Ombudsman. It's also important to consider the clarity of your evidence for a quicker turnaround time. 

The Impact of the 2025 Ruling

The timeline of mis-selling claims can be hugely affected by how the legal environment in 2025 will turn out. With a Supreme Court ruling to be expected by July, the FCA will most likely follow new guidance, and this can pose any of the following changes in the current guidelines:

• An increase in new claims, creating longer backlogs for both lenders and the Financial Ombudsman Service
• Additional steps and documentation will be required in light of the new legal framework on mis-selling claims. 
• Scrutiny on claims that would have been resolved in a quicker manner

This could also mean that even routine claims may take longer as adjustments to new procedures are made. Some staff will also be retrained to ensure they are able to comply with the new legal thresholds. 

Why start your claim now?

While some may suggest waiting for the ruling, as the outcome is perceived to be beneficial to consumers, it’s always wise to prepare ahead of time for any changes that may affect you and your case. This turning point can mean many things for the car financing landscape, and moving your claim through the current system can be ideal for ensuring success. 

If you take the first step now, you can complete the necessary steps while conditions are still favourable and you are in a better position. The influx of claims after the Supreme Court Decision has been made is already expected. 

Taking the first step now also gives you an advantage, as not all mis-sold car finance claims are created equal. There are a significant number of complaints that all pertain to commission-based mis-selling. This is when the dealer or lender fails to disclose that a commission was paid, incentivising the lender to offer a more expensive finance deal.

Claims like this will require more documentation and even deeper analysis, as proving the commission influenced the finance terms can be tricky. You should be able to examine the specific structure of your finance agreement, show any form of communication you had with your dealer, and compare the offers you may not have been shown at first.  

There are also cases where you will need expert review to determine how the commission affected the interest rate you were charged, and help in uncovering discrepancies between what you were told and what the agreement meant. Here are a few factors that can slow down the process:

• The lender is disputing the facts you raised. 
• There are missing key documents needed to verify your claim
• The claim was already escalated to the Financial Ombudsman and is subject to an independent ruling

With the Supreme Court 2025 ruling looming, there will be stronger attention towards commission-based claims. There’s a higher percentage that it will come under sharper regulatory focus. Greater documentation may be imposed, and a more restrictive guideline can be developed affecting the nature of how today’s claims are being managed. 

3. Recent Developments That May Affect Timelines

2025 is a crucial year, especially for those considering filing a mis-sold car finance claim. There are better developments that will unfold, and it will affect how quick a claim is handled. The two key forces at play in this foresight are the Supreme Court Ruling expected to be released in July 2025 and the guidelines to be implemented by the Financial Conduct Authority (FCA). Updates like this can either accelerate the claims process for some or slow it down, depending on how the rules play their part in the entire deal. 

What makes the Supreme Court Ruling in 2025 important?

In July 2025, a landmark judgment will be given to clarify the legal obligations of dealers and lenders in terms of disclosing discretionary commissions. Also referred to as “DCAs”, these are payments given to dealers and brokers, depending on the cost of the finance deal. This can also incentivise sellers to offer consumers much more expensive deals rather than what is suited to their financial status, as it would also mean higher interest rates.

This ruling is expected to:

• Define whether non-disclosure of these commissions can tantamount to mis-selling.
• Clarify the rights of consumers to claim compensation in such cases.
• Set a precedent that may simplify or standardise future claims.

Should the court ruling favour consumers, there could be a flood of new claims and a rise in settlements, with lenders being forced legally to respond to give legal clarity by resolving cases quickly to lessen reputational risks. 

FCA Guidance on the Ruling

After the Supreme Court Decision is released, the FCA is expected to release new guidance on handling car finance mis-selling claims. In this guidance, firms will have a clearer structure on how to handle complaints, what standards to meet when assessing and reviewing these claims, and possibly going over old cases again to ensure they can compensate affected customers proactively. 

Here’s what we can expect on the possible changes:

• Claims will be processed with quicker turnaround times, as lenders will be legally liable to settle quickly. 
• The FCA may or can introduce new criteria to follow, which will cause a temporary pause and delay on some types of claims
• Processes may be adjusted and re-evaluated
• Compensation rules may change, putting a limit on the timeframes, altering how much affected individuals are eligible to receive. 

Simply put, there’s a lot of uncertainty, and consumers who are eager and act now, while still familiar with the existing structures in place, may even benefit in the long run, as what’s certain is that early claims will be prioritised. This is why those who submitted ahead of the upcoming ruling have already been given priority. Firms tasked to help solve these mis-selling claims may also feel the urgency to finish the existing claims before they are dumped with hundreds of cases after the ruling takes effect. 

It’s also a strategy to get yourself ahead of the expected bottlenecks, hence preventing you from getting caught between retrospective cut-off dates and eligibility limitations which is more than possible once this ruling comes into play. To put it simply, once these new rules are introduced, there’s no assurance it will play to your advantage. 

4. Step-by-Step Timeline Breakdown

Car finance claims don’t have to feel overwhelming all the time, especially for those who already have an idea of what they should expect at each stage. Here, we’ll make a run down on the timeline of the entire process, and walk you through every step of the process, from the first time you make an inquiry down to the final payout. We will also go over the key considerations for each phase and step.

Step 1: Initial Eligibility Check (1 to 5 Days)

To know whether your claim is valid, the first step is to conduct eligibility checks. In this step, you will answer a few questions particularly related to your car finance, such as when it was purchased, the type of financing involved (PCP, HP, etc) and if in any way you were informed of the commission that your broker was getting. 

This step is usually quick and is almost a simple run-down only. In fact, most eligibility checks only take one to five days at max. It also doesn’t need all your paperwork upfront. The important thing is to confirm that you are eligible for a claim, so you can move on to the next step of the process. 

Step 2: Preparing documents and submitting it (1 to 2 Weeks)

After confirming eligibility, the next phase or step is to gather relevant documentation. Transparency in car finance has now become a challenge which is why any piece of evidence is crucial. This includes your finance agreement, any emails and paperwork from the dealership and identification documents that will help identify that the contract is under your name in the first place. In case you missed your original contract, you can tap the help of a professional service to help retrieve it from your lender. You can also directly request it from your lender, as it is part of their responsibility to provide it should you request another copy. 

You may think that compiling these documents is simple, but it’ll take a while if you have to request all of the documents. However, it goes quicker if you already have access to the documents, and you will only need to submit them. To manage, you can allot one to two weeks for this stage to ensure that you don’t miss anything, as it will only delay the process if there’s a miss-out. 

Step 3: Lender Response 

After formally submitting your complaint or claim, the lender will have to respond and issue a decision, may it be a rejection, acceptance or compensation. The Financial Conduct Authority also mandates that a response comes with documentation, whether the lender decides to uphold or reject it. Straightforward cases are fixed and decided upon faster. Originally, lenders had an eight-week window to decide, however a proposal to pause the time has been approved, and firms have up to after December 4, 2025 to respond to complaints. This extended window allows them to carefully review each complaint, easing the process should they find themselves guilty of the claim, and release compensation right away. Also, it would allow the FCA to introduce an alternative way to resolve DCA complaints. 

Step 4: Escalation to the Financial Ombudsman 

In cases where the lender doesn’t fully agree with your claim, they may either reject it outright, or send partial compensation. Some may also refuse to respond. If you encounter this, then the next step you can do is to tap the Financial Ombudsman Service (FOS). However, the FCA recommends consumers to wait until the later of July 29, 2026 or at least 15 months from the date of when they received their last letter from the firm before referring the case to the FOS. 

They are the independent body responsible for investigating financial complaints and making legally binding decisions. Also remember that complex cases or those that involve missing documentation may eventually take longer. This is to address the fact that there may be changes after the 2025 Supreme Court ruling that is expected to come out around July, and chances are, there could be better ways of addressing the complaints by then.

Step 5: Payouts, Compensation and other Resolution

After an upheld claim, may it be by the lender or the Ombudsman, you can now expect a resolution and payout relatively quickly. Should the lender agree to settle the amount you’re anticipating, they can arrange the payment, typically in a few weeks. 

This final stage is certainly the quickest and most straightforward part of the entire claims journey. However, for others, there will still be delays, and this is usually due to verifying banking details and calculating compensation which will further extend the waiting time. 

Total Timeframe: 6 Weeks to 6+ Months

How long does a car finance claim take? Under ideal circumstances, we usually give a case about six weeks to complete, if it’s a simple claim; however, also consider that complex cases can go as long as six months to complete. This applies to the hundreds of cases under the Ombudsman already. We also expect regulatory changes and claim surges to happen after the 2025 ruling has been finalised and implemented. Always set realistic expectations as it helps build your patience all throughout this tedious journey.

5. How to Speed Up Your Claim

When starting a finance claim, keep this in mind: Not everything in this finance claim process will go exactly as you want it to. Lender response time, Ombudsman protocols and even piling up your evidence can take more time than anticipated. The best you can do is to ensure you make the best and maximise those that fall under your control like determining eligibility, submitting relevant documents and responding quickly with the other party in case of queries and clarifications. Being proactive can also do much more in increasing your chances for a smooth and successful resolution. Here are additional tips to consider:

Start with Strong Documentation

When you have the right documents, filing a claim will finish quicker than you thought. Ideally, it is the most important part to prove your claim. This will include your Finance Agreement, the records of payment made, and all the written or emailed communication you have with your dealer or finance provider. However, it's important that these documents clearly identify the mis-selling that happened, and should show or highlight undisclosed commissions and inflated interest rates.

But in case you don’t have everything yet, there’s still a high chance you succeed on this claim with the help of a reliable claims management company. Not only can they help retrieve the documents you need, but they are also knowledgeable in strategies that will help you claim your compensation. But always consider that your case will be more compelling the more proof you have.

Use a Claims Company to Navigate the Process

While doing it all on your own may seem like the most cost-effective option, one of the most effective ways to speed up your claim is through a trusted claims management company. They are experts in this specific field, and they know the regulations like the back of their hand. Also, their experience with lenders and regulators in the past makes them more equipped to handle even more challenging claim cases and appeals. 

The best part, however, is that there are claims management companies who offer a no win-no fee agreement, which is an advantage on your end especially if you’re worried you might not be able to recover the money you paid the experts that you hire. A PCP claims company will also manage all the communication for you, which means fewer people bugging you on busy days and a more relaxed and smooth claims experience. With claim management companies, there’s a lower likelihood of mistakes. Claims prepared by experts aren’t only quicker, they’re also more effective and persuasive. 

Respond Quickly to Requests for Information

The reason why most delays happen is due to unanswered follow-up questions and overlooked requests for clarification. This also happens, especially if it’s just you handling the complaint. Keep in mind to be as responsive as possible, as small details, when not clarified, can push your paper back into the piles, adding days and weeks to your total timeline. 

In a climate where thousands of claims are being processed every now and then, being responsive gives you an edge. With this, lenders and regulators can easily progress on your complaints. After all, who wants to work on cases with incomplete details and documentation, right?

Be proactive.

Ultimately, speeding up your claim is about being proactive at every stage. From gathering documents and choosing expert help, to replying promptly when needed, the steps you take now can dramatically influence how long it takes to see a result. In a year of legal uncertainty and likely regulatory shifts, there’s never been a better time to act decisively.

6. What to Do While You Wait

Filing a claim takes time, and for many, it’s a serious waiting game. But there are ways to speed up the process or improve your chances of success in your claim. Here are a few pointers to consider:

Submit your claims via a trusted Claims Management Company

The best way to ensure you are able to submit a claim correctly is to tap expert help. This is practical especially if you aren’t fully aware yet of what a mis-selling claim is or if you actually qualify for one. CMCs are experienced in the whole claims process, from identifying what claims are valid to presenting them clearly and persuasively. They can also help reduce the burden on your end while ensuring accuracy and improving the chances of giving you a favourable outcome. 

Stay engaged and responsive

Once your claim is in progress, the next best step is to remain involved. This includes checking your email and requesting regular updates. You also have to keep yourself available in case the other party requests more clarification to avoid unnecessary delays. 

Stay knowledgeable on Regulatory Updates

While you can be knowledgeable about the current process, financial regulations and claim eligibility criteria may change in the next few days or months. You can sign up for email alerts and follow relevant regulatory bodies and consumer advocacy groups, which can help keep you updated on any changes relevant to your case. 

Collect more evidence

While your claim is ongoing, you can still use the spare time to find more correspondence, gather payment records and screenshots which can add strength to your claim. This works best especially in cases that involve any of the following:

• Discretionary commissions that are not clearly disclosed. 
• Cases that involve complex terms which were not properly explained by the dealer
• The dealer is giving verbal assurances that aren’t reflected in the contract

Even with a CMC on your side, evidence is still king in a mis-selling case like this. Your case becomes more compelling with additional proof to show off the mis-selling. 

7. Encourage Early Action

There’s no point in waiting for anything, even such a ruling that is said to favour consumers. There are too many risks and waiting too long can affect the entire structure of the claim process. Rather than being able to process your claim under the existing rules and ensure a higher likelihood of success, you may end up falling short on deadlines or get caught up in retrospective rulings. Delays can be crucial. What if the new changes push your claim back? Even if your case is valid, there’s no assurance that you’ll win it when the new ruling comes out. Also, while you may think that your agreement is already “too old”, you’ll be surprised to know, it counts until the third year after you found out you were misled into an unfair contract. Don’t let the age of your contract deter you from taking any action. 

Lastly, getting it done now, rather than later gives you peace of mind. Start early and gather documents while they’re still within your reach. Ask the necessary questions and decide early on if you will proceed formally. This will help put you in control and prevent you from being put under pressure later.