Mis-sold car finance compensation update

If you bought a car, motorbike or van using finance between 6 April 2007 and 1 November 2024, you may be eligible for compensation.

The Financial Conduct Authority has set up a scheme to help people check their eligibility and put in a claim without the help of a lawyer or a claims management firm.

However, that scheme has been challenged by some car finance companies and a consumer group, and as such, it has partially been suspended.

The legal challenge is due to be heard late this year or early next year. Until then lenders are unlikely to contact you to inform you how much you're owed. They may still be contacting you to inform you that you're not eligible for compensation, however, so keep an eye out for that.

The FCA is still encouraging people to submit their claims, and you can do that here, external. Simply search its list of lenders to find relevant contact details, then download the relevant template complaint letter or email, or a link to the lender's dedicated complaint form.

Lawyer Denise Nurse talked about this on Morning Live back in April - you can watch that episode back here to find out more. If you would like to use Denise's template complaint letter, click here.

The FCA has also been putting out warnings surrounding legitimate and illegitimate claims management companies. Its taskforce, working with the Information Commissioner's Office, the Advertising Standards Authority, and the Solicitors Regulation Authority, has removed more than 1,200 misleading adverts since January 2024.

If you feel you were misled into signing up to a claims management firm or law firm, you can put in a complaint about that as well using the FCA's template letter, which you can find here, external.