If you’ve seen a TV advert this fortnight telling you that you don’t need to pay to claim car finance compensation, that’s the Financial Conduct Authority, and it’s spending £2m on the message.
The reason is a number from its own research. 27% of car finance customers say they lack the confidence to make a complaint without using a claims management company or a law firm, despite free tools being available. A further 23% say they’re unsure of their options, while 59% have already made or are considering a claim.
Those proportions matter because of what representation costs. A claims firm’s percentage comes out of your compensation, the FCA has said elsewhere this month that a CMC or law firm may charge up to 36% in fees, including VAT, out of any compensation you get back. On a £2,000 payout, that’s £720 for filling in a form you could have filled in yourself.
What the free route actually is
The FCA publishes a template complaint letter on its website. More than 80% of the customers surveyed said the template would make them more confident complaining directly to their lender. You send it to the lender (the finance company named on your agreement, not the dealer) and they respond.
The campaign runs until 6 September across TV, radio, print, billboards and social media.
The catch worth knowing
The redress scheme itself is in an awkward place. The FCA launched it in March, with consumers expected to be compensated £7.5bn in total. However, the scheme is currently partially suspended because of legal challenges, which the FCA says it plans to defend robustly.
That doesn’t mean don’t complain. It means the timetable is uncertain, and anyone promising you a fast payout for a percentage is selling certainty that doesn’t currently exist.
Complaining yourself takes an afternoon. Our guide to writing a complaint letter covers what to include and what to keep, and the deadline tracker will tell you when the eight weeks are up and you can go to the Financial Ombudsman.
Common questions
Do I need a claims company to claim car finance compensation?
No. The FCA publishes a free template complaint letter and you send it to your lender directly. A claims firm may charge up to 36% including VAT out of anything you get back.
Who do I complain to about car finance?
The lender named on your finance agreement, not the dealer who sold you the car.
Is the car finance redress scheme still running?
It launched in March 2026 but is currently partially suspended while legal challenges are heard. You can still complain to your lender.