Complaints and compensation: where to start

This page is information only. We do not take your details, check whether you can claim, or send you to any company.

The free way: complain to the lender

The FCA says the best thing you can do if you have concerns is to complain to your lender. You can do it for free, and you do not need a claims company or a law firm.

1. Find your lender. If you are not sure who it was, check old bank statements, ask the dealer, or look at your credit file.
2. Complain to them. The FCA page has a list of lenders, with contact details and template letters.
3. Wait for their answer. Your lender has to tell you whether you are owed anything. Right now the timing is uncertain (see below).
4. If you are unhappy with the answer, you can complain to the Financial Ombudsman Service. It is a free service that settles complaints between consumers and financial firms. Check the date in your lender’s letter, because you may have a deadline.

Never share your bank PIN or passwords. Only give bank details to your lender if you are certain who you are dealing with.

Car finance: where things stand

The scheme may apply to car, motorbike or van finance taken out between 6 April 2007 and 1 November 2024. That includes hire purchase agreements such as Personal Contract Purchase (PCP). The FCA says it applies where you were not told about certain arrangements between the lender and the broker. There are exceptions.

We cannot tell you whether you are owed anything. Only your lender can, using the scheme rules. Even if you complain now, the FCA says the timing of your lender’s answer is uncertain.

Using a claims firm or law firm

• The FCA says you do not need one to take part in its scheme or to find out if you are eligible.
• If you sign up, you may pay for a service you do not need. Fees come out of any compensation you get. Ask for the fees in writing, including any VAT.
• If you sign up with more than one firm, possibly without realising, you may have to pay fees to leave. It could also delay your payment.
• If you want to end an agreement, you may be charged a fee, but it should be reasonable. If you were signed up without your consent, or misled, you can ask to leave for free.
• Check that a firm is authorised before you sign anything.

We do not recommend or list any claims firm or law firm. The FCA page explains what to expect and how to complain about a firm.

Who keeps the money?

If you are in an IVA or bankrupt, or have been bankrupt, any compensation might not be yours to keep. What happens depends on the type of claim, when it arose, and the terms of your IVA or bankruptcy.

Bankruptcy: the PPI example

The Insolvency Service gives an example with mis-sold PPI. A PPI contract, and any compensation for it, is an asset in a bankruptcy. The Insolvency Service pays that compensation to your creditors. This applies even if you have been discharged or did not know about the claim. It says it cannot return the money to you directly. It also tells people to speak to the official receiver if a claims company contacts them.

That is the rule for PPI. We cannot say it works the same way for every kind of claim. A trustee, the official receiver or a qualified adviser can tell you how it applies to yours.

IVA: money you receive during the IVA

In a standard (protocol) IVA, you must tell your supervisor about any money or assets worth more than £500 that you receive during the IVA. Your supervisor can claim them as part of the IVA. The standard terms also list the proceeds of legal claims among the money that can be paid in to finish an IVA early. So compensation might need to go into your IVA, or change what you pay.

Your own IVA papers set the rules for you. Ask your supervisor before you sign anything with a claims firm.

Free debt advisers can also explain this.