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Disclaimer: This content is educational and does not constitute legal or financial advice. Always seek independent advice before making a claim.
From Free Car Finance Claim Check to Settlement: What the Journey Actually Looks Like
If you've heard about the FCA's investigation into motor finance mis-selling and wondered whether it applies to you — but haven't done anything about it yet — you're not alone. For many people, the hesitation isn't about whether they have a case. It's about not knowing what happens next.
This page is designed to answer that question directly. Not just whether you might have a claim, but what the full journey looks like — from running a free car finance claim check through to receiving a settlement.
Step One: Running Your Free Car Finance Claim Check
Everything starts with a single question: could your car finance agreement have been affected?
The free car finance claim check answers that question quickly, without requiring any specialist knowledge. You enter the basic details of your agreement — lender, amount financed, deposit, monthly payment, and term — and the tool produces an estimate of what you may have overpaid due to undisclosed dealer commission.
This estimate is based on the kind of interest rate inflation that the FCA found to be widespread across the industry between 2007 and 2021, when discretionary commission arrangements (DCAs) allowed dealers to set your rate — and earn more commission for doing so.
The free car finance claim check is quick, takes under five minutes, and gives you an immediate sense of whether your agreement is likely to be in scope.
📋 What you'll need for your free car finance claim check +
- Lender name — who provided the finance (e.g. Black Horse, Santander, Close Brothers)
- Amount financed — the vehicle price minus any deposit
- Deposit paid — enter zero if no deposit was made
- Monthly payment amount
- Agreement length in months
These details appear on your original finance agreement or welcome letter. If you can't locate them, you can request a copy from your lender for free using your Subject Access Request (SAR) rights — lenders must respond within 30 days.
Step Two: Understanding Your Estimate
Once the tool generates your estimate, it's important to understand what it represents — and what it doesn't.
The figure is an indicative calculation based on typical DCA commission structures and the agreement details you've provided. It reflects the difference between the interest rate you were charged and what a fair, non-inflated rate might have looked like.
The FCA has estimated that the average affected consumer could recover around £700, but this is a midpoint across a very wide range. Agreements on higher-value vehicles, over longer terms, or with particularly inflated rates can produce estimates of £1,000 or more.
What the estimate is not is a guaranteed payout. Your actual compensation — if your claim is successful — will be determined through the formal process described below.
📊 What affects the size of your estimate? +
| Factor | Effect on Estimate |
|---|---|
| Higher vehicle price | Increases estimate |
| Longer agreement term | Increases estimate |
| Smaller or no deposit | Increases estimate |
| Greater rate inflation | Increases estimate |
| Shorter agreement | Reduces estimate |
| Large upfront deposit | Reduces estimate |
Step Three: The Eligibility Review
If your estimate suggests a meaningful claim, the next step is a free, no-obligation eligibility review with a regulated claims specialist.
This involves a more detailed look at your specific agreement — including the lender involved, the rate applied, and whether the terms of your contract suggest a DCA was in place. The specialist will assess whether your case meets the criteria for a formal complaint.
You are under no obligation to proceed beyond this stage, and no fees are charged for the initial review.
Step Four: Submitting the Formal Complaint
If you're confirmed as eligible and choose to proceed, a formal complaint is submitted to your lender. Under FCA rules, lenders are required to investigate and respond — though the regulator has currently paused the standard eight-week response window while it finalises its approach to industry-wide redress.
At this stage, two outcomes are possible:
The lender upholds the complaint — they agree that mis-selling occurred and offer a settlement, typically representing the excess interest paid plus compensatory interest.
The lender rejects the complaint — the case can then be escalated to the Financial Ombudsman Service (FOS), which will independently review the evidence and make a binding decision.
⚖️ How the Financial Ombudsman Service works +
The FOS is a free, independent service that resolves disputes between consumers and financial firms. You do not need a solicitor or claims company to use it.
Once a complaint is referred to the FOS:
- Both sides submit their evidence
- An ombudsman reviews the case independently
- A provisional decision is issued, which both parties can respond to
- A final decision is made — this is binding on the lender, though you can choose not to accept it
The FOS has already upheld a number of motor finance DCA cases in consumers' favour. The process typically takes several months.
Step Five: Receiving Your Settlement
If your claim is upheld — either by the lender directly or through the FOS — you will receive compensation reflecting the excess charges you paid.
In some cases, this may also include interest on the overpayment, calculated from the date you made the excess payments. Any settlement will be paid directly to you.
If a formal FCA redress scheme is introduced — which remains under consideration — eligible consumers may receive compensation automatically, without needing to go through the individual complaint process.
Who Can Use the Free Car Finance Claim Check?
The free check is open to anyone who took out a PCP, HP, or conditional sale agreement through a UK dealership between April 2007 and January 2021. Your agreement does not need to be active, and you do not need to still own the vehicle.
🏦 Lenders commonly involved in mis-sold car finance claims +
Black Horse (Lloyds Banking Group), Santander Consumer Finance, Close Brothers Motor Finance, MotoNovo Finance, Barclays Partner Finance, Moneybarn, Volkswagen Financial Services, and BMW Financial Services are among the most frequently named lenders. The investigation is sector-wide — if your lender is not listed, you may still have a valid claim.
Frequently Asked Questions
How long does the whole process take after a free car finance claim check?
Timelines vary. If a lender upholds your complaint directly, a settlement can be reached within weeks. Cases referred to the Financial Ombudsman Service typically take several months. If the FCA introduces a formal redress scheme, the timeline will depend on how that scheme is structured — but registering your interest now ensures you are included from the outset.
Will making a claim affect my credit score?
Making a mis-selling complaint should not affect your credit score. It is a consumer rights complaint, not a credit application. However, if your finance agreement is still active, it is worth taking independent advice before taking any formal action, as circumstances can vary.
What if my lender has gone out of business?
If your lender is no longer trading, your claim may still be viable through the Financial Services Compensation Scheme (FSCS), which protects consumers in certain circumstances when a regulated firm has failed. A claims specialist can advise on whether this route is available in your case.
Can I make a claim on behalf of a deceased relative?
In some circumstances, yes. The executor of an estate may be able to pursue a claim on behalf of a deceased person. This is a complex area and independent legal advice is strongly recommended before proceeding.
Is the free car finance claim check the same as making a formal claim?
No. The free car finance claim check is an eligibility estimate tool — it does not initiate a formal complaint or create any legal obligation. A formal claim only begins when you submit a complaint directly to your lender or authorise a claims specialist to do so on your behalf.
This content is for educational purposes only and does not constitute legal or financial advice. Car Claim Calculator is not a law firm or regulated financial adviser. Always seek independent advice before making a claim.