Updated: 28 October 2025

Originally Published: 21 February 2025

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If you are looking into PCP refunds and wondering how long the process really takes, you are not alone. Many UK drivers are revisiting their agreements after the car finance scandal revealed that millions may have paid more than they should have. The good news is that it doesn’t matter if you used a Personal Contract Purchase (PCP) or a Hire Purchase (HP); you can claim a refund on car finance if your deal was mis-sold to you. The less good, but still realistic news is that it will take a different amount of time for each case, and recent changes to regulations have impacted on how quickly things happen now.

This guide gives you a practical, human overview of how long do car finance claims take, what affects the pace, how to prepare a strong file, and what to expect at each stage between now and the start of the FCA’s redress programme in 2026. You will also find tips to speed things up, plus a simple plan if you want to start with a car finance refund check online.

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Quick Context: Why Timelines Look Different Right Now

Two developments are shaping the journey for car finance claims in 2025:

FCA industry process

The Financial Conduct Authority opened a consultation [1] to create a single approach for commission-related complaints so cases are handled fairly across lenders. For commission issues linked to mis-sold car finance, lenders have a temporary pause on final responses until 4 December 2025 [2]. The FCA expects final rules in early 2026, with lenders issuing final responses by 31 July 2026 and first payments likely in late 2026.

Supreme Court clarification (2025) [3]

The court confirmed that paying commission is not automatically unlawful. However, poor or hidden disclosure, or commission structures that inflated costs, can still make the relationship unfair. In plain terms, many PCP claims remain valid where secrecy and impact are shown.

FCA Redress Overview (2025–2026)

The FCA estimated that industry compensation could reach £8.2-11 billion, with an average redress of around £700 per agreement [4]. Such figures illustrate how the car finance scandal exposed hidden commissions and unfair interest rate practices in PCP and HP agreements between 2007 and 2024.

Some claims will not qualify, but these numbers should set expectations for anyone considering PCP refunds or a refund on car finance under the upcoming redress framework.

What this means for you: you can submit your complaint today, and you should. Your case will be logged and queued. Decisions for commission cases will typically land after the pause lifts and the new rules are in force.

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The Simple Answer: How Long Do Car Finance Claims Take?

Under normal rules, a lender has up to eight weeks to give a final response, and if you disagree you can go to the Financial Ombudsman Service (FOS). Because of the current pause for commission-related cases, real-world timelines look like this:

Submit your complaint now

Your case is acknowledged and logged. This can happen within 1 to 2 weeks.

Holding period during the pause

Lenders record and triage cases but are not required to give final responses for commission issues until after 4 December 2025. Expect periodic updates, not outcomes.

Final responses window

From December 2025 through 31 July 2026. Many cases will be decided in this period.

Payments

If upheld, first payments are widely expected from late 2026, with straightforward cases usually paying out sooner than complex ones.

If your complaint is about other types of mis-sold car finance that are not commission-driven, the standard eight-week framework may still apply. Check your lender’s acknowledgement letter, as it will state which process they are following.

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Stage by Stage: What Happens And How Long Each Part Takes

Think of the journey in five stages. Times shown are realistic ranges rather than promises.

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1) Initial Claim Submission and Acknowledgement

Typical time: 1 to 2 weeks

You email or post your complaint to the lender. A good complaint includes:

• Your full name, previous names if any, and address history
• Vehicle registration and the dealer name
• Agreement number if you have it
• A short, clear explanation of what went wrong, for example hidden commission, unclear rate-setting, or a rushed sale
• Copies of useful documents

The lender acknowledges receipt and assigns a reference. If you cannot find your paperwork, you can still start. Use your credit report, bank statements showing repayments, emails, or ask the dealer which finance company was used. Many people begin with a car finance refund check online to confirm eligibility and create a document checklist.

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2) Lender Triage and Evidence Gathering

Typical time: 2 to 8 weeks

The lender verifies who you are, locates your agreement, and checks basic facts. They may ask for extra details, such as:

• Proof you were not told about commission
• Evidence of affordability issues or rushed sales pressure
• Clarification about add-ons that were not explained

The more complete your pack, the fewer requests and the faster the review. If your case is commission-related, you will usually receive a holding update explaining the pause and next steps.

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3) Investigation and Assessment

Typical time: varies during the pause; standard 4 to 8 weeks once rules take effect

Once the FCA’s final scheme is live, lenders will assess your file against the new rules and the evidence. This is where they calculate whether you paid more due to discretionary commission structures or poor disclosure, and how much you should receive as a refund on car finance. Straightforward cases may be decided quickly. Complex files that span several vehicles or involve missing records may take longer.

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4) Final Response or Escalation

Typical time: within the window to 31 July 2026; Ombudsman stage 3 to 6 months

You will receive a final response letter. It will either uphold your complaint and explain the payment, partially uphold it and offer a smaller amount, or reject it. If you disagree, you can go to the Financial Ombudsman Service. The Ombudsman stage typically takes 3 to 6 months, sometimes longer if the case is intricate or there are many similar cases ahead of yours.

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5) Payment

Typical time: 2 to 6 weeks after agreement or decision

Once an offer is accepted or an Ombudsman decision is made, the lender processes payment. Allow 2 to 6 weeks for funds to arrive. If there is an active balance, the lender may adjust what you owe first, then pay any remainder to you.

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What Slows Things Down?

Understanding the most common friction points will help you avoid them.

• Missing or unclear documents
• The biggest cause of delay. If you can, include:
• Your agreement or welcome pack
• Dealer or broker emails and texts
• Bank statements showing repayments
• A short timeline of what was said and when

If you do not have these, ask the lender to provide copies. They must keep records.

Disputes about what was explained

If you say there was no disclosure and the lender says there was, things can stall while both sides search for proof. Keep your account of the sale simple and specific. Name the person or role, the wording you recall, and why it mattered.

Complex histories

Multiple vehicles, changes of name or address, early settlements, or refinance can add complexity. This does not kill a case, but it can add weeks to tracing and verifying records.

Volume and regulatory milestones

There will be surges when public timelines are reached. Submitting early is the best way to get ahead of backlogs created by the car finance scandal.

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How To Speed Up Your PCP Refund

You cannot control the entire system, but you can remove avoidable delays.

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1) Send a tidy, well-evidenced file

Put documents in date order, label them cleanly, and keep your explanation short. Aim for one page that says: what you were told, what was not disclosed, and the effect on cost. This reduces back-and-forth and helps the reviewer calculate a refund on car finance faster.

2) Respond quickly to any requests

Most lenders give a short window to supply extra information. Reply fast and in full. If you need time, acknowledge the request and give a date you can meet.

3) Keep a simple log

Create a one-page log of dates: complaint sent, acknowledgement received, documents requested and sent, updates received. If you later need the Ombudsman, this log is gold.

4) Use a professional if you want support

If you are short on time, unsure about the paperwork, or you have several agreements, a regulated finance claims expert or representative can help. Some provide a quick car finance refund check online to assess whether your case is worth pursuing. A good firm will gather records, draft the complaint, chase the lender, and challenge a low offer. If you want to handle it yourself, use their checklists as a reference.

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What A Strong Complaint Looks Like

You do not need legal language. Plain English wins. Here is a structure you can copy.

Subject: Car finance complaint – [Your name] – [Registration] – [Agreement number if known]

Opening:

“I am complaining about how my car finance was sold. I was not told that the dealer could influence my interest rate in a way that affected their commission. I believe the lack of disclosure increased the cost of my agreement.”

Key points:

“I signed the agreement with [dealer] on [date]. The finance provider was [lender].”

“I was not told about commission, or how any commission might change my rate.”

“The final balloon payment and total cost were not explained clearly.”

“I request a full review and a refund of any overpaid interest or undisclosed commission.”

Attachments:

Agreement, statements, emails, brief timeline.

Keep it polite and factual. Do not worry if you are missing an item. Say what you do have and ask the lender to provide the rest from their records.

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Typical Time Ranges at a Glance

Complaint submission and acknowledgement: 1 to 2 weeks

Triage and evidence gathering: 2 to 8 weeks

Assessment once rules are live: often 4 to 8 weeks, longer if complex

Ombudsman review if needed: 3 to 6 months

Payment after agreement or decision: 2 to 6 weeks

During the current pause for commission complaints, expect the decision stage to occur largely between December 2025 and July 2026, with payments following from late 2026.

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FAQs On PCP Refunds And Timing

How long do car finance claims take if my case is simple?

If your file is complete and straightforward, many cases can be decided within the final-response window once the pause ends. Payment often follows within a few weeks.

Do I need the original agreement to start?

No. Begin with a complaint and the facts you have. Ask the lender to supply copies. You can also track details via your credit report or bank statements.

Can I use a PCP claims company or specialist?

Yes. Many people do, especially for multiple vehicles or if they do not have time to chase. If you prefer to do it yourself, use a car finance refund check online to build your own checklist.

Will a complaint harm my credit score?

No. Complaining does not harm your credit score. If your case is upheld, unfair markers can be corrected.

Is this only for PCP claims?

No. HP agreements can also be affected. That said, PCP claims are common because commissions and balloon terms were frequent pressure points.

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Example Timelines: Three Common Situations

A. One car, complete file

You submit a neat file with agreement, emails, and bank statements. The lender logs it. After the pause ends, your case is assessed and upheld, and you are paid within a few weeks. Total elapsed time depends on when you file, but the active assessment is short.

B. Two cars, missing paperwork

You submit now with minimal documents and ask the lender to retrieve records. There is extra time for tracing and verifying. Once rules are live, you receive two calculations. You accept or negotiate details, then payment arrives a few weeks later.

C. Dispute and Ombudsman

The lender partially upholds with a lower figure than expected. You escalate to the FOS, who request more detail and examine internal notes. The Ombudsman upholds your case and instructs payment. Add 3 to 6 months for this stage.

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Using A Car Finance Refund Check Online

If you are still at the “do I qualify” stage, an online checker is a quick way to test your position. It usually asks for:

• Your name and contact details
• Vehicle registration and year if known
• Dealer name and lender if known
• Whether commission or balloon payment was explained

A checker cannot guarantee an outcome, but it helps you decide whether to proceed and what documents to gather. It is a handy first step for anyone starting from scratch with PCP refunds after years have passed.

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Why Starting Now Still Matters

Some people plan to wait until 2026. In practice, starting now is smarter:

• You secure your place in the queue before backlogs grow.
• You preserve evidence while it is easier to find.
• You give yourself time to gather missing documents without rushing.
• If your case is not commission related, you may still get an earlier decision.

Waiting does not create better options. Submitting early gives you options.

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Final Checklist Before You Press Send

• I have written a short, factual complaint.
• I have attached any agreement, emails, and bank statements I can find.
• I have asked the lender to provide missing records from their files.
• I have saved a copy of everything I sent.
• I have set a reminder to follow up in two weeks.
• I have noted that final responses for commission cases are expected between December 2025 and July 2026.

Bottom Line

The car finance scandal has made many drivers ask a simple question: did I pay more than I should have? If your PCP or HP was mis-sold, you have every right to seek a refund on car finance. The system is moving toward a consistent outcome for everyone, and although the pause has pushed some timelines out, you can still act now.

Start with a car finance refund check online if you want a quick sense of eligibility, or draft your complaint using the template above and send it to your lender. Keep it tidy, keep it factual, and keep a log. If you prefer help, a regulated representative can run the process for you.

The answer to how long do car finance claims take is changing as the FCA programme moves into place. What does not change is the benefit of being early, organised, and clear about what went wrong. That is how you give yourself the best chance of a fair and timely result from PCP claims and other car finance claims in 2025 and 2026.

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References:

1. The Financial Conduct Authority opened a consultation - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. lenders have a temporary 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. Supreme Court clarification (2025) - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
4. The FCA estimated that industry compensation could reach £8.2-11 billion, with an average redress of around £700 per agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme