Car finance refunds 💰

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What are car finance refunds?

Car finance refunds relate to situations where customers may have been overcharged or treated unfairly when taking out car finance agreements.

This often centres around:

• How interest rates were set

• Whether commission was disclosed

• Whether the agreement was fair and transparent

Regulators have been reviewing historic car finance practices, particularly for PCP and HP agreements, which has opened the door for some consumers to seek compensation.

Not everyone qualifies — but checking is usually free.

Who might be eligible?

You might be eligible if:

• You used PCP or HP car finance

• The agreement was taken out in recent years

• Commission or pricing wasn’t clearly explained

• You paid more interest than you reasonably should have

Eligibility depends on your individual agreement, which is why most routes begin with a simple eligibility check.

How does the process work?

Whether you do this yourself or use a provider, the process is broadly the same:

1. Eligibility check
   Your finance agreement is reviewed to see if it falls within scope.

2. Complaint raised
   A complaint is submitted to the lender.

3. Assessment
   The lender reviews the case. If rejected, it can be escalated.

4. Outcome
   If successful, compensation may be offered. If not, the claim ends.

This process can take weeks or months, and outcomes aren’t guaranteed.

Option 1: Claiming yourself (the free route)

You can make a claim yourself for free by:

• Contacting your lender directly

• Escalating to the Financial Ombudsman Service (FOS) if needed

Pros

• No fees

• You keep 100% of any compensation

• Full control of the process

Cons

• Can be time-consuming

• Paperwork and follow-ups

• Easy to give up if it drags on

If you’re organised and happy chasing lenders, this can be a good option.

Option 2: Using a claims management company

Some people prefer to use a claims management company (CMC) to handle the process on their behalf.

A CMC typically:

• Checks eligibility

• Gathers agreement details

• Handles communication and follow-ups

They usually work on a no-win, no-fee basis, meaning they only get paid if the claim succeeds.

Pros

• Very little effort required

• No need to understand the technical details

• Someone else does the chasing

Cons

• A fee is taken from any compensation

• You won’t keep 100% of the payout

Recommended provider (Fountain Finances - optional hands-off option)

Could you be owed £1,846.23* for each car you’ve financed?

If you’ve had one or more PCP or HP agreements — even going back years — it can be worth running a quick check, especially if you’ve financed more than one vehicle.

This site is owned and operated by Fountain Finances Limited which is registered in England and Wales — Registered number: 08069774 — Registered office: 1D MacLaren House, Talbot Road, Old Trafford, M32 0FP — Fountain Finances Ltd is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity — FRN: 836354 — Information Commissioners Office registration number: ZA465505 — VAT number: 250 2839 19

Fountain Finances is a claims management company (CMC). You can claim for free, without using a CMC, first to your lender or to the Financial Ombudsman Service (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.

The FCA is likely introducing a free consumer redress scheme and they estimate that a consumer may receive on average £700 per agreement under their redress scheme.

Redress depends on individual circumstances and eligibility.

*£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.

What this provider offers

Locate agreements back to 2007 for FREE and see if you may be owed compensation in under 60 seconds.

👉 Find My Agreements (takes under 60 seconds)

More agreements found = more potential compensation

✅ No car registrations needed
✅ No paperwork needed
✅ Hands-off claim process

Why we’re recommending them

Fountain Finances is a regulated claims management company working in partnership with HD Law, a law firm that has represented consumers at the UK Supreme Court (August 2025).

This option is designed for people who would rather not deal with the back-and-forth themselves.

Will you get more money using a provider?

This is the key question — and the honest answer is:

No. Using a provider does not increase the amount you’re entitled to.

The compensation amount is based on:

• Your agreement

• Regulatory decisions

• Lender assessments

A provider:

• Does not change how compensation is calculated

• Does not unlock extra money

• Does not guarantee success

What they offer is convenience, not higher payouts.

If you successfully claim yourself, you’ll usually keep more.
If you wouldn’t claim at all without help, a provider can still leave you better off than doing nothing.

Independent guidance worth reading

This issue is widely covered. Consumer site MoneySavingExpert has published a detailed guide explaining how car finance complaints work, who may be eligible, and how to complain directly to your lender or the Financial Ombudsman Service for free.

Their guide is a good place to start if you want background before deciding whether to handle the claim yourself or use a claims management company.

Important: you can claim for free

You are always free to make a claim yourself either directly to your lender or via the Financial Ombudsman Service — at no cost.

The Financial Conduct Authority is currently consulting on a free redress scheme, which they estimate could pay around £700 on average if you choose that route.

* £1,846.23 is the average redress achieved by HD Law per agreement (figure dated 31 July 2025).
Redress depends on individual circumstances and eligibility, and not everyone will qualify.

Final thoughts

Car finance refunds aren’t guaranteed — and they’re not “free money”.

But if you used PCP or HP car finance, it can be worth checking, especially when eligibility checks are free and there’s no obligation to proceed.

Whether you:

• Claim yourself

• Use a provider

• Or decide it’s not for you

The key is understanding your options and choosing what fits your situation.