Drivers may be able to reclaim money from past car finance agreements

A growing number of UK drivers are reviewing past car finance agreements after concerns around discretionary commission arrangements (DCA) and other potential unfair lending practices.

The Financial Conduct Authority (FCA) has highlighted these practices and is reviewing their potential impact, but anyone who feels they may be eligible for a claim has options.

It said if you used car finance between April 6, 2007 and November 1, 2024 and your lender included a discretionary commission arrangement (DCA), a high rate or commission, or a contractual tie that you weren't properly told about then you may have a claim.

You can choose to handle your claim on your own at no cost - there are free options available - or you can seek help from a legal professional if you prefer.

While solicitors cannot recommend their services over doing it yourself, some people find it helpful to have professional assistance to save time and effort. Ultimately, the choice is yours and both options are valid.

Liverpool-based legal practice Complex Law says it may be able to help consumers understand whether they paid more than necessary and, where appropriate, see if they have a claim.

Tom Blanchfield, director of Complex Law, said: “We’re committed to supporting consumers seeking fair outcomes. Too often, ordinary people are left fighting uphill battles against powerful institutions; we exist to level that playing field.”

You may be eligible to reclaim if:

You financed a car in England between April 2007 and November 2024 (depending on the final FCA rules)

The finance was arranged through a dealership or broker (PCP, HP, etc.), rather than directly with a bank or finance company

Your agreement involved a discretionary commission arrangement (DCA)