Anyone who has been affected by the mis-selling of car finance agreements can
complain directly to their lender for free. You do not need a
claims management company, as you have the right to raise concerns with your financial provider independently. Since 2007, 12.1 million eligible agreements (FCA estimate) have potentially been impacted by this issue.
Before You Complain: What to Gather
Before you start drafting your complaint, it’s essential to collect all relevant information and documents that support your case. Here are the key pieces of information you should gather:
- Agreement Number: This is typically found in your car finance agreement or on any correspondence from the lender.
- Dates: Record the dates when your finance agreement was signed, as well as any significant events related to your complaint.
- Lender Name: Identify the company that provided your car finance. This information can usually be found in your loan documents.
- Vehicle Details: Note down details about the vehicle you financed, including its make, model, and registration number.
Step 1: Identify Your Lender
To proceed with your complaint, you need to know which financial institution provided your car finance agreement. Here are some methods to help you identify your lender:
Checking Your Agreement
Your car finance agreement will contain the name of the lending company. Review this document carefully and look for any letters or communications from them.
V5 Logbook
The Vehicle Registration Document (V5) logbook may also provide information about the financier, especially if it was registered under their name during the financing period.
Credit File
If you still can’t identify your lender, check your credit file. Websites like Experian or Equifax offer access to your personal credit history and might show entries related to car finance agreements.
Step 2: Write Your Complaint
Once you have all necessary information, draft a clear and concise
complaint letter. Here’s what to include:
- Your Name: Clearly state your full name.
- Agreement Number: Include the unique reference number associated with your agreement.
- Dates: Mention the dates relevant to your finance agreement.
- Discretionary Commission Arrangement (DCA): Specify that you believe a DCA was used during the sale of your car finance agreement. A DCA is an arrangement where brokers receive additional payments from lenders for steering customers towards specific products, which can be unfair and misleading.
Template Paragraph Example:
"Dear [Lender Name],
I am writing to complain about my car finance agreement that I entered into on [Date]. My reference number is [Agreement Number]. During the sale of this agreement, I believe a Discretionary
[Commission Arrangement](https://mlj.org.uk/glossary/discretionary-commission-arrangement) (DCA) was used. This arrangement led me to believe that your product was the best available option when in fact it may not have been.
I request a review of my case and compensation for any harm caused by this mis-selling practice."
Step 3: Send Your Complaint
After drafting your complaint, you need to send it to your lender. You can do this via post, email, or through an online form on their website. Make sure to keep copies of everything you send and note the date when you submitted your complaint.
Post
- Print out your letter.
- Include any relevant documents.
- Use a recorded delivery service if possible for proof of sending.
Email
- Send your letter in the body or as an attachment.
- Ensure the email includes all necessary information, including dates and agreement numbers.
- Save copies of sent emails for reference.
- Locate the complaint submission form on the lender’s website.
- Fill out all required fields accurately.
- Attach any relevant documents.
Step 4: Wait for a Response
Under Financial Conduct Authority (FCA) rules, lenders have up to 8 weeks to respond to your complaint. If you do not hear back within this timeframe, you should follow up with the lender or escalate your case directly.
What Happens if They Reject Your Complaint
If your lender rejects your complaint, they must provide a clear explanation of their decision and any next steps available to you. You have the right to escalate your case further if you disagree with their response.
If you are unsatisfied with the outcome after waiting for an 8-week response or if the lender rejects your complaint, you can take it to the Financial Ombudsman Service (
FOS) at no cost. The FOS is a free and impartial service that resolves disputes between consumers and financial businesses.
What Compensation Could You Receive?
If successful in your complaint, the FCA-estimated scheme average is £829 per eligible agreement. In total, the estimated value of all eligible claims amounts to approximately £7.5 billion (FCA estimate).
Compensation is typically calculated based on the harm caused by the mis-selling practices and may include interest charges or other financial losses incurred due to unfair arrangements.
Common Mistakes to Avoid
Not Keeping Copies
Always keep copies of your correspondence, including emails, letters, and any documents submitted. This will help you track your case and provide evidence if needed.
Missing the 8-Week Window
Ensure that you adhere to the 8-week timeline for initial responses from lenders. Missed deadlines can complicate the process and potentially invalidate your claims.
Paying a Claims Management Company Unnecessarily
You do not need to pay any fees or use third-party services like claims management companies to complain about car finance mis-selling. These services are often unnecessary and can add costs that you could avoid by handling the complaint independently.
Sources and References
- Financial Conduct Authority (FCA)
- Office for National Statistics (ONS) Census 2021
- Experian
- Equifax
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
---
MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.