Question 1

What is the mis-sold car finance scandal all about?

Accepted Answer

In early 2024, 3 UK consumers took their cases to Court. It surrounds Discretionary Commission Agreements, whereby the car dealer could set their own interest rate on a car finance loan. As bank interest rates were historically low (around 0.5%-1% between 2008 and 2021) some loan agreement rates were set much higher, fuelling undisclosed sales commissions to the car dealerships.

In short, monthy repayments were not necessarily going 100% to paying off the vehicle finance, but partially paying commissions to the dealerships potentially without the buyers knowledge.

Question 2

What is the criteria for making a claim?

Accepted Answer

If you purchased a NEW OR USED car between 2008 and 2021 using finance through the car dealership you should contact us now. This also applies to commercial vans.

Question 3

How much can I expect to get back?

Accepted Answer

One size does not fit all. The Financial Conduct Authority is looking into the situation now and will publish its recommendations on how compensation should be paid soon. This could be returning interest only, the loan amount or both.
However, the amount could run into £1000's for some people.

Question 4

How long will my claim take?

Accepted Answer

You will need to be a little patient. Firstly, any submission for information we make to your dealer or finance company they have 8 weeks in which to respond. We are also waiting for the FCA to publish their recommendations on what compensation should be offered and timelines.

Our in-house claims management systems will keep track on your claim every step of the way so you need do nothing. We will keep you updated as soon as we have any news on your claim.

Question 5

What can I expect from Claimline Legal UK?

Accepted Answer

Claimline Legal UK has been in successful financial claims management for over 14 years. We were around for the PPI scandal and claimed £MILLIONS in compensation for our clients. We are here for you now.

We are UK owned and UK based.
We will treat you with respect.
We will handle your claim end-to-end.
Our fees are set and capped by the FCA - see section on "What are your fees".

Question 6

How much do you charge?

Accepted Answer

Firstly, we work on a Now-Win No-Fee basis* so unless we win your claim you do not owe us a penny.

Since March 2022 our fees are fixed and capped by the Financial Conduct Authority. That means we cannot charge you more than the fees laid out in our fee table. See here.

PLEASE NOTE COMPANIES AND SOLICITORS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY MAY CHARGE YOU MORE.

*Subject to our Terms & Conditions. Some administrative fees may apply if you cancel our services after the cool-off period.

Mis-sold Car Finance Claims

Claimline Legal UK

0800 779 7457

Frequently Asked Questions