If you secured a car, van, or motorbike on Hire Purchase or PCP between April 2007 and November 2024, you may be due significant compensation. The FCA’s proposed redress scheme aims to resolve claims over unfair car finance commission, with payouts expected to average £700 per agreement. Importantly, there are no hidden fees using the provided free complaint tool.

The typical interest rate on agreements under scrutiny ranged widely but was often between 8.9% to 11.9%. Qualified customers can submit claims in just a few steps, even if they have already paid off their finance or no longer own the vehicle. There are no upfront costs to file a claim with this scheme.

How to Apply: Step-by-step Summary

1. Gather your agreement details (lender, dates, registration, etc.).
2. Use the free online complaint tool to auto-draft your claim email.
3. Send the complaint to your lender directly and keep a copy.
4. Await a formal response or next steps as defined by the FCA scheme.
5. Accept your offer once approved to get your compensation.

Key Advantages

This reclaim scheme is entirely free to use, with a user-friendly online tool that generates a comprehensive complaint letter in minutes. Eligible consumers can secure compensation without legal jargon or third-party involvement. The system is regulated by the FCA, providing additional security and reliability.

Additionally, all work is handled directly with your lender, minimising hassle. Even those who have already paid off their car, or no longer possess it, remain eligible—making the process as accessible as possible.

Main Disadvantages

One potential drawback is the lengthy timeline before payouts are received due to the scheme’s mass scale. Depending on when the redress rules finalise, it may take months for some to see compensation.

Another limitation is that interest-free or lease-only finance agreements are excluded. Agreements for incorporated companies also do not qualify, limiting the scope for business users.

Our Verdict

This FCA car finance reclaim scheme stands out with its no-fee, no-hassle application process, reaching millions who may have been unfairly charged. The free online tool streamlines claims for individuals and executors alike, while average compensation sits at a highly attractive £700.

Despite wait times, this offer is especially compelling for those who fit the criteria and wish to reclaim what they’re rightfully owed, all with full regulatory oversight and no hidden catches.