If you’ve purchased a car, van, or motorbike on finance in the past, there’s a new opportunity to reclaim money. The recent Financial Conduct Authority initiative targets people who were treated unfairly due to undisclosed commission fees. This scheme is available at no charge to eligible claimants, making it especially accessible with no upfront risks.

The Citizens Advice Car Finance Claims scheme is open if you bought a vehicle on finance between April 2007 and November 2024 and your dealer received an undisclosed commission from the lender. The average payout is £829, and the process is designed to be direct and fair for consumers.

How to Apply: Step-by-Step

1. Find your lender’s contact information through the FCA list
2. Contact the lender to submit your official complaint
3. Await the lender’s response detailing any compensation entitlement
4. Respond within one month to accept or challenge their offer
5. Receive your payment within a month if your claim is successful

Advantages

There is no charge to use the Citizens Advice scheme, which ensures you keep 100% of your compensation. The process is simple, doesn’t involve legal proceedings, and ensures transparency. Additionally, you can avoid the high fees associated with claims management companies, making the process straightforward and cost-effective.

Disadvantages

The main drawback is that you may not qualify if your car was not financed during the specified period or if the lender did not pay hidden commissions. The process may take time, particularly if your records are not up-to-date or your lender is slow to respond.

Our Verdict

This compensation scheme is an exceptional opportunity for consumers to reclaim money owed due to unfair car finance practices. The process is risk-free with no fees, and the average payout is notable. If eligible, we highly recommend taking action.