How to make a car finance compensation complaint yourself without paying a claims company
The FCA says you can complain directly to your lender for free, and using a claims firm can reduce any eventual compensation by a substantial fee.
Car-finance compensation adverts are everywhere, but the Financial Conduct Authority says motorists do not need to use a claims management company or law firm to make a complaint. You can complain directly to the lender yourself.
That matters because paid representatives can take a share of any compensation. The FCA warns that fees charged by some claims firms or legal representatives can be substantial, potentially reaching up to 36% including VAT depending on the arrangement and regulatory fee cap.
Step 1: work out which lender financed the car
The dealer that sold the vehicle is not always the lender. Check old finance agreements, bank statements, email confirmations and credit records. If you remember the dealer but not the lender, the dealer may also be able to help identify who provided the finance.
The FCA maintains a list of lenders with verified contact details and complaint routes. Use that rather than clicking a random advert or giving personal details to an unsolicited caller.
Step 2: check the relevant dates
The FCA scheme concerns certain motor-finance agreements entered into between 6 April 2007 and 1 November 2024. It includes types of hire purchase such as PCP where the relevant commission or broker-lender arrangements apply.
Being inside the date range does not automatically mean compensation is due. The agreement still has to fall within the scheme criteria.
Step 3: send the complaint to the lender
The FCA lender list links to complaint forms where firms provide them. Where there is no dedicated form, the FCA provides template complaint wording. Keep the message factual: identify yourself, the vehicle or agreement as well as you can and state that you want the lender to investigate under the motor-finance complaint process.
You do not need to invent legal arguments or calculate compensation yourself.
Step 4: keep evidence
Save a copy of the complaint, the date it was sent and any acknowledgment or reference number. If you submit a web form, take a screenshot of the confirmation page. That record becomes important if there is later a disagreement about whether or when you complained.
Why might the lender not pay immediately?
The FCA's redress scheme has been legally challenged and parts have been suspended. The case is expected to be heard in December 2026 or February 2027. While the relevant parts are suspended, lenders do not have to calculate or pay compensation under them.
That delay is frustrating, but it is not a reason to pay a third party simply to submit the same initial complaint.
When might professional help make sense?
Some people prefer professional representation for complex disputes, but that is a choice rather than a requirement of the FCA scheme. Before signing anything, understand the fee, cancellation terms and whether the representative is properly authorised.
Watch for fraud
- Do not share online-banking passwords or PINs.
- Do not install remote-access software for someone offering a refund.
- Verify the lender through the FCA's own website.
- Be suspicious of anyone guaranteeing a specific payout before reviewing the agreement.
- Do not confuse a complaint acknowledgment with confirmation that compensation is owed.
The simplest route is usually direct
If you are potentially affected, the practical sequence is: identify the lender, use the FCA's verified complaint route, send the complaint yourself and keep the paperwork. You can always seek further help later if the case becomes disputed.
The key point is that making the complaint is free. Paying a percentage of a future award should be a deliberate choice, not something a motorist believes is necessary to get into the scheme.
