Updated: 27 October 2025

Originally Published: 14 June 2025

If you financed a car in the UK between 6 April 2007 and 1 November 2024, there is a real chance your agreement should be reviewed for mis-sold car finance. Many drivers took PCP or HP deals that looked fine in the showroom, only to learn later that undisclosed commissions, inflated interest, or poor explanations may have pushed costs higher than necessary. This guide explains how long a mis-sold car finance claim takes, what has changed in 2025, how much compensation for mis-sold car finance you might receive, and how to prepare so your claim moves smoothly.

We will also cover practical steps, what documents help, and how to choose between going direct or using a finance claims expert. If you want a quick starting point, you can run a car finance refund check online to see if your agreement is likely to qualify, then follow the steps below.

What Counts As Mis-Sold Car Finance In The UK?

In plain English, mis-sold car finance UK means your PCP or HP agreement was not explained fairly or clearly, or the price you paid was affected by incentives you were not told about. The Financial Conduct Authority has highlighted three common problems:

Discretionary commission arrangements

Some dealers could influence your interest rate. A higher rate often meant a higher commission for the dealer. Most customers did not realise this was happening.

High or poorly disclosed commissions

Even where paperwork hinted that “a commission may be paid,” the size and effect were often unclear. Very large commissions could distort the recommendation you received.

Restricted access to lenders

In some showrooms you were shown only one finance provider. Without a genuine comparison, you could not judge whether the deal was competitive.

Add in weak affordability checks, rushed sales, confusing explanations of PCP balloon payments, and add-ons slipped into the monthly figure, and you have the pattern behind many car finance claims.

What Changed In 2025 That Affects Timelines?

Three developments matter for mis-sold car finance claims this year.

Supreme Court clarification in August 2025 [1]

The Court confirmed that commission is not automatically unlawful. If it was hidden, excessive, or raised the price you paid, the overall deal may still be unfair under the Consumer Credit Act. This keeps legitimate PCP claims very much alive.

FCA pause on final responses until 4 December 2025 [2]

Lenders do not need to give final decisions on most commission-related complaints until after this date. You can still submit your complaint now. Doing so time-stamps your place in the queue.

FCA consultation and 2026 schedule [3]

The consultation running through late 2025 is shaping a national redress approach for agreements made from 6 April 2007 to 1 November 2024. Final rules are expected in early 2026. The proposed deadline for lenders to issue final responses is 31 July 2026, with payments expected to roll out later in 2026.

What this means for you: You do not need to wait. File now so your claim is logged. Reviews will move faster for those already in the system when the pause ends.

So, How Long Does A Mis-Sold Car Finance Claim Take?

Short answer first, then the detail.

• Before the pause, simple cases often ran 6 to 16 weeks from complaint to outcome.
• During the pause, many outcomes will not be finalised until after 4 December 2025.
• From early 2026, once the rules are in place, most claims should move to a standard timetable, with lenders aiming to meet the 31 July 2026 response date.

Step-by-Step Timeline In 2025–2026

Step 1: Quick checks and onboarding (1 to 5 days)

Run a car finance refund check online or answer a short questionnaire with a finance claims expert. You do not need every document to begin.

Step 2: Evidence gathering and complaint drafting (1 to 2 weeks)

Collect your agreement, pre-contract information, any dealer emails, and statements. If you cannot find them, ask your lender for copies. A PCP claims specialist can do this for you.

Step 3: Complaint submitted to the lender (now until Dec 2025)

Your lender logs the complaint. The normal eight-week clock for a final response is suspended for most commission-related issues until 4 December 2025. Non-commission issues may still get a quicker response, case by case.

Step 4: Assessment window (Dec 2025 to mid-2026)

Once the pause ends and final rules are published, lenders apply the new method. The FCA has proposed 31 July 2026 as the cut-off for lenders’ final responses in eligible cases.

Step 5: Escalation if needed (mid-2026 onward)

If you disagree with the outcome, you can go to the Financial Ombudsman Service. Expect several months here, depending on backlog and complexity.

Realistic Timing Summary

• Simple, well-documented files: log now, expect decisions after the pause, then payment in late 2026.
• Complex or multiple agreements: expect longer. Be early to reduce queue time.

If you were looking for a soundbite answer to how long do car finance claims take or how long does a car finance claim take, for 2025–2026 the sensible planning range is from a few months after the pause to well into late 2026, depending on complexity and whether an Ombudsman review is needed.

How Much Can You Get For Mis-Sold Car Finance?

You asked, how much can you get for mis-sold car finance and how much compensation for mis-sold car finance is typical. Based on the FCA’s current modelling for commission-related harm:

• Average payment: about £700 per eligible agreement [4]
• Higher outcomes: larger loans or longer terms may receive more
• Industry total: the FCA has indicated possible redress up to £8.2 billion across the market

Each file is judged on its facts. Typical redress includes:

• Refund of overpaid interest that resulted from undisclosed commission or a discretionary commission arrangement
• Repayment of hidden or undisclosed commissions
• Simple interest on refunds, commonly the Bank of England base rate plus one percent
• Credit file corrections where markers were linked to an unfair agreement

If you want a quick feel for a potential outcome, try an initial car finance refund check online then refine the estimate once your statements and agreement are reviewed.

What You Can Do Now To Avoid Delays

You control more of the timeline than you might think. Here is how to help your case move faster once assessments begin.

Get your paperwork together

Agreement, pre-contract credit information, payment history, settlement letters, and emails with the dealer. If you do not have them, request copies from your lender now.

Write a clear one-page complaint

Explain what went wrong, such as not being told about commission or being offered only one finance provider. Ask for a review and a refund of any overpaid amounts.

Respond quickly to queries

Many delays happen when lenders ask for clarification and get no reply. A fast response keeps your file moving.

Consider expert help

A regulated claims management company or PCP claims company can gather evidence, draft the claim, and chase the timeline. This is useful if you are missing documents or have several agreements. A good finance claims expert can also make sure the claim aligns with the FCA’s final rules once published.

Common Questions About Mis-Sold Car Finance UK

How long does a mis-sold car finance claim take if my finance has ended?

You can still claim even if the loan is settled or the car has been sold. Timings are similar, though older files can take longer to document. Log the claim now so it is ready for assessment after the pause.

Will making a complaint hurt my credit score?

No. A complaint does not affect your score. If you succeed, unfair markers linked to the agreement can be corrected.

I do not have my agreement. Can I still start?

Yes. Ask the lender for copies. If you work with a finance claims expert, they can request documents for you.

Should I wait until 2026 to file?

No. File now so your complaint is logged. The FCA pause only affects when lenders must issue final responses, not your right to submit.

What if my dealer closed?

Usually the lender carries responsibility. Your mis-sold car finance UK complaint is still valid.

Do I need a lawyer?

Not always. Many people go direct. Others use a claims management company for convenience. Choose what fits your time and confidence level.

Signs Your Agreement Was Mis-Sold

You do not need to be a finance specialist to spot red flags:

• No clear disclosure that a commission was paid to the dealer
• An APR that seemed high for your credit profile without a clear reason
• Only one finance option was presented
• You felt rushed and did not get time to compare
• PCP balloon payment, mileage limits, or end-of-term choices were not explained clearly
• Add-ons such as GAP insurance appeared without proper consent

If one or more apply, consider a complaint. If three or more apply, your agreement has the classic markers of mis-sold car finance.

DIY Or With A Finance Claims Expert?

Go direct if you have time, are comfortable with paperwork, and have most documents.

Use a regulated expert if you want hands-off support, have multiple agreements, or lack paperwork. A PCP claims specialist or claims management company typically works on a no win, no fee basis. Always check FCA authorisation and understand the fee terms.

Tip: Whether you go direct or use a representative, the most important step is to submit your complaint now so it is in the queue for the 2026 redress timetable.

A Simple Template You Can Use Today

Copy and adapt the text below to start your complaint:

Subject: Mis-Sold Car Finance Complaint

I believe my car finance agreement was mis-sold. I was not clearly told that the dealer could influence my interest rate or receive a commission that affected my price. Please confirm whether a commission was paid, explain how my rate was set, and review my account for a refund of any overpaid interest or undisclosed commission.

Name:

Address:

Agreement Number:

Contact Details:

Send by email or through the lender’s online form. Keep a copy. If you prefer, ask a finance claims expert to submit and manage this for you.

Quick Timeline Reference

• Now: Submit your complaint and gather documents
• Until 4 Dec 2025: FCA pause on final responses for most commission-related cases
• Early 2026: Final redress rules expected
• 31 July 2026: Proposed deadline for lenders to issue final responses
• Late 2026: Payments expected to begin

If your question is how long does a mis-sold car finance claim take, plan for decision making to pick up after the pause, then allow time for payment processing or any Ombudsman review.

Bottom Line

The road to fixing mis-sold car finance is finally clear enough to act with confidence. The Court has confirmed that secrecy and excessive commissions can create unfairness. The FCA has mapped out a redress route that should deliver consistent outcomes across the UK. The best move is simple. Submit your complaint now, get your documents in order, and decide whether to go direct or work with a finance claims expert or PCP claims company.

If you still feel unsure, start with a car finance refund check online for a quick sense of eligibility. Then put your case on record so you are ready for the 2026 redress window. Acting early does not just help speed. It protects your place in line and puts you in control of the outcome.

_________

References:

1. Supreme Court clarification in August 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. FCA pause on final responses until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
3. FCA consultation and 2026 schedule - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
4. Average payment: about £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme