If you used car finance between 2007 and 2021, that agreement may have been mis-sold.
Check your eligibility in under 60 seconds.
Quick form, no paperwork needed
We check lenders on your behalf
Compensation paid to you
Fountain Finances is a claims management company (CMC). You can claim for free, without using a CMC, first to your lender or to the FOS. We will be paid a fee by our partner law firm for referring your case to them as part of an ongoing marketing agreement. *£1,846.23 is the average redress achieved by our partner law firm. This figure is the average claim value per agreement of our partner law firm, HD Law as of July 31st 2025. The FCA has introduced a free to use motor finance redress scheme.
Over 17 million UK car finance agreements could potentially be affected.
You may be able to claim if your agreement falls into one of the categories below:
Your interest rate may have been increased by the dealer or broker so they could earn more commission — without this being clearly explained.
Applies to agreements from 2007 to 2021
The dealer may have been tied to a specific lender, which could have influenced the finance deal you were offered, limiting your options.
Applies to agreements from 2007 to 2021
The commission may have been disproportionately high compared to your interest or loan amount, potentially making the agreement unfair.
Applies if the commission was above 35% of the interest (cost of credit) and above 10% of the total loan amount. Applies to agreements from 2007 to 2021
Don't worry if you can't find your agreement or remember the lender or dealership. We can find your agreements for you using a few basic details and check whether you are eligible.
There is no obligation to proceed after checking.
Our partner law firm has achieved an average of *£1,846 per claim.
CHECK IF I CAN CLAIMMany car finance companies have been guilty of irresponsible lending. Reports have shown that the car finance industry is rife with secret payments and hidden commissions, meaning you could have been mis-sold your car finance deal. The FCA estimates this could have cost consumers £300 million annually.
DCAs allowed brokers and dealers to inflate interest rates to increase their commissions. Banned by the FCA in 2021 after an investigation discovered widespread evidence of mis-selling.
It is estimated that 40% of all car finance deals included DCAs, potentially billions owed to customers. The FCA estimates the average payout through their scheme is £829; however, claims companies may secure more through the courts.
On 25th October 2024, a high court judgement ruled that all commissions must be clearly disclosed, even fixed fees. This opens up claims against many more lenders.
The ruling was reviewed by the Supreme Court in 2025, who upheld part of the initial high court ruling.
FCA investigations found mis-selling across all finance types:
The FCA is overseeing a compensation plan to address large-scale mis-selling in the motor finance sector. The total redress is estimated to be between £9 billion and £18 billion. It is likely that over 10 million finance agreements were affected.
If you use a claims company, they may pursue higher compensation outside of the scheme, as some experts claim the FCA scheme undervalues claims.
The FCA estimates hundreds of thousands of motorists may have been affected. Many customers were overcharged by £1,000 or more in interest to boost dealer commissions.
FCA is considering a compensation scheme for large-scale mis-selling. The Financial Ombudsman Service has already ruled in favour of complainants on hidden commissions.
Be aware, there are statutory deadlines, known as limitation periods, that apply to mis-selling claims.
Expertise with complex claims: Our specialist partners understand the nuances of car finance compensation and handle the paperwork, evidence gathering and negotiations for you, reducing stress and guesswork.
Maximise potential redress: Independent experts argue that the FCA scheme's average payout (~£829 per agreement) may undervalue some cases. We can assess whether taking your case outside the scheme could lead to a higher settlement. *£1,846 is the average redress achieved by our partner law firm.
Multiple agreements managed together: If you've had several hire-purchase or PCP loans, ensure every eligible agreement is included, so you don't miss out on compensation.
Because of the scale of redress that is owed to customers, the FCA has confirmed that it is still consulting on eligibility rules, how claims will be processed, and funding arrangements. Compensation payments are now expected in 2026. However, consumers should still register their claim in the meantime to ensure they don't miss any deadlines.
The rules state that a lender has 8 weeks to reply to a complaint; however, sometimes they go over this deadline. If the lender concedes they were at fault, they will pay out shortly after. If the complaint needs to go to the Financial Ombudsman, the case could take 12 to 18 months. Some people get a claim accepted after a couple of months; others take over a year.
Lenders currently have an extension for hidden commissions claims, granted by the FCA, so these may take longer than usual.
*£1,846 is the average redress achieved by our partner law firm per agreement. As most people will have multiple car finance agreements, the average refund per claimant would likely be many times more.
The compensation you may be entitled to depends on key factors including the loan amount, interest rate, finance agreement date, and loan duration. The FCA highlighted that a typical motor finance agreement of £10,000 under a DCA led to consumers being overcharged by around £1,100 per agreement.
You can potentially make a car finance claim for unaffordable lending practices, if the broker was on a Discretionary Commission Arrangement, or for hidden commissions. Whether your agreement is ongoing or paid off, you can still claim.
The FCA previously told MPs that there were 14.6 million discretionary commission arrangement agreements between 2007 and 2020. That is over half (around 56.4%) of all UK car finance agreements in that period. In terms of hidden commissions in general, this would add to the number of borrowers affected.
Mis-selling often occurs when details of the agreement aren't clearly explained or proper affordability checks aren't conducted. In terms of car finance, it can also be because the broker was incentivised by DCAs. If any of these apply to you, you can file a complaint. Whether your agreement is ongoing or paid off, you can still claim.
Our partner law firm charges a success fee, calculated as a percentage of the total compensation you receive. You will only be charged if compensation is successfully obtained on your behalf. You will have the right to cancel within 14 days with no penalty. If you cancel after 14 days, you may be charged for work done up until that point. You do not need to use a claims management company — you can claim directly to your lender or to the Financial Ombudsman Service for free.