A major investigation by the Financial Conduct Authority (FCA) has uncovered widespread mis-selling in car finance agreements, potentially affecting millions of UK consumers who financed vehicles in or after 2007. Thousands of claims have already been submitted, and experts warn that affected drivers should act now to avoid delays as case volumes rise. Over 90% of vehicles are bought on Finance, and 40% of those agreements may have been mis-sold. Your vehicle could be a part of it, and here is a guide for you on how to check, submit your claim, and get your share with the help of Click2Claim. It is a fully online process where you can check if your vehicle is eligible by entering the registration number.

How to Check Eligibility

Consumers can determine if they have a potential claim through a simple process on Click2Claim.

1. Check Vehicle Registration

Entering a registration number on https://click2claim.co.uk/check-my-reg/allows a preliminary check for mis-sold finance agreements.

2. Review Past Finance Deals

A soft credit search can identify all eligible car finance agreements since 2007, eliminating the need for manual paperwork checks.

3. Submit a No-Win, No-Fee Claim

If a case proceeds, claimants can sign a no-win, no-fee agreement with Click2Claim. There's no hassle—just complete a simple online procedure and let Click2Claim handle the rest. They’ll also keep you updated throughout the process.

Why Compensation Claims Are Being Filed

The FCA’s findings suggest that many consumers were unfairly charged due to:

• Inflated interest rates – Lenders allegedly set higher rates to increase broker commissions.
• Unaffordable lending – Some borrowers were approved for deals they could not reasonably repay.
• Undisclosed commissions – Dealers and brokers frequently received hidden kickbacks, driving up costs for buyers.

These practices could entitle affected drivers to significant compensation payouts, with some claims reaching thousands of pounds.

Major Lenders Under Scrutiny

Several prominent finance providers have been implicated, including:

• Barclays Partner Finance – The Financial Ombudsman Service (FOS) ruled in 2023 that the lender failed to disclose a £1,600 commission payment.
• Santander – A high percentage of PCP agreements may have been affected.
• Close Brothers – Reports suggest over 40% of its PCP deals included undisclosed commissions.

The FCA’s final decision on the scandal, initially expected in late 2024, has been delayed until May 2025. However, legal experts indicate that payouts remain likely, and early claimants may avoid processing backlogs.

With an estimated 30 million PCP agreements potentially affected, consumers are urged to check their eligibility promptly. Those who believe they were mis-sold finance can explore claims directly with lenders or through legal representatives.

For further details on the investigation and how to proceed, affected individuals should seek independent financial or legal advice.