❓ Frequently Asked Questions

A Discretionary Commission Arrangement (DCA) was a practice where car dealers and brokers could adjust your interest rate and receive higher commission payments for doing so. The higher the rate they set, the more money they made.

The Financial Conduct Authority (FCA) banned DCAs in January 2021 after finding they led to widespread consumer detriment. If you had car finance between April 2007 and January 2021, you may have been affected.

You may be eligible for compensation if you meet ALL of the following criteria:

🎯 Strongest Cases Include:

• Interest rates significantly above FCA benchmark rates
• Large loan amounts (higher potential compensation)
• Longer loan terms (more interest paid)
• Documentation showing lack of commission disclosure

Use our free eligibility checker to get an instant assessment of your case.

Our service covers the main types of consumer car finance that were subject to DCA practices:

📋 Covered Finance Types:

• Personal Contract Purchase (PCP): Monthly payments with optional final payment
• Hire Purchase (HP): Monthly payments until you own the car
• Personal Contract Hire (PCH): Car leasing arrangements
• Conditional Sale: Similar to HP with different legal structure
• Personal Loans: Unsecured loans specifically for car purchases

🚫 Excluded Finance Types:

• Business or commercial vehicle finance
• Motorcycle or motorbike finance
• Caravan or motorhome finance
• Boat or marine finance
• Plant machinery or equipment finance

Don't worry! Missing documents are very common and won't prevent you from making a claim. Here's what you can do:

📄 Alternative Documentation:

• Bank Statements: Showing monthly payments to the finance company
• Credit Reports: Often show finance agreements and payment history
• Email Confirmations: Any emails from the dealer or finance company
• Insurance Documents: May reference finance agreements
• Dealer Records: We can help you request information from dealers

⚖️ Your Rights to Information:

Under data protection laws, you have the right to request copies of your personal data from finance companies. This includes:

• Original application and agreement documents
• Payment history and statements
• Commission arrangements and payments
• Any correspondence related to your agreement

Our streamlined process is designed to maximize your chances of success while minimizing hassle:

🔄 Step-by-Step Process:

1. Free Assessment (2 minutes): Complete our eligibility checker
2. Professional Review (24 hours): Our experts analyze your case
3. Complaint Letter Generation (1-3 days): Tailored professional complaint
4. Submission Guidance: Instructions for submitting to your lender
5. Lender Review (8 weeks max): Finance company investigates
6. Resolution or Escalation: Settlement offer or FOS referral

📞 Ongoing Support:

Throughout the process, you'll have access to:

• Dedicated case manager for complex cases
• Regular progress updates and reminders
• Expert advice on lender responses
• Help with additional documentation requests
• Support for Financial Ombudsman Service escalation

No, you don't need expensive legal representation. Our service provides everything you need to pursue your claim effectively:

⚖️ When You Might Need Additional Legal Help:

• Complex cases involving large compensation amounts (£10k+)
• Disputes requiring court proceedings
• Cases involving fraud or criminal activity
• Business or commercial finance agreements

🆚 Comparison with Claims Management Companies:

Feature	Our Service	Claims Companies
Cost	£29.99 fixed fee	25-40% of compensation
Control	You handle your case	They control everything
Support	Expert guidance provided	Full case management

Our recommendation: Start with our service. If your case becomes complex, you can always seek additional legal help later while keeping most of your compensation.

Once you submit your complaint to the finance company, here's what typically happens:

📅 Timeline of Events:

1. Acknowledgment (1-5 days): Lender confirms receipt of complaint
2. Investigation Period (8 weeks max): Company reviews your case
3. Initial Response (2-4 weeks typical): Preliminary findings or requests for more information
4. Final Response (8 weeks max): Settlement offer, rejection, or partial acceptance
5. FOS Referral (if needed): Escalation to Financial Ombudsman Service

🎯 How We Support You:

• Response Analysis: Help you understand lender responses
• Negotiation Guidance: Advice on settlement offers
• Document Review: Analysis of evidence provided by lenders
• Escalation Support: Assistance with FOS referrals
• Progress Tracking: Dashboard updates on case status

Compensation amounts vary significantly based on your specific circumstances, but here's what to expect:

📊 Factors Affecting Compensation:

• Loan Amount: Higher principal = higher potential compensation
• Interest Rate: The higher above benchmark rates, the more compensation
• Loan Term: Longer terms = more excess interest paid
• Commission Rate: Higher commission = stronger case
• Early Settlement: May reduce total compensation amount

🧮 Compensation Calculation Method:

Compensation typically includes:

1. Excess Interest: Difference between rate paid and fair rate
2. Consequential Losses: Additional costs incurred
3. 8% Annual Interest: On refunded amounts from payment date
4. Distress & Inconvenience: £100-£500 for trouble caused

The "fair" rate is what you should have been offered without the influence of discretionary commission arrangements. This is determined by several factors:

📊 FCA Benchmark Rates:

The Financial Conduct Authority publishes benchmark rates based on:

• Credit Score: Your creditworthiness at the time
• Market Conditions: Base rates and market competition
• Loan Terms: Amount and duration of finance
• Vehicle Type: New vs used, age and value
• Deposit Amount: Size of initial payment

🎯 Red Flags for Excessive Rates:

• Rates above 15%: Almost always excessive for consumer car finance
• Large rate variations: Same customer quoted different rates
• Rate increases: Rates raised during the application process
• No rate justification: Dealer couldn't explain rate calculation

🔍 How We Determine Fair Rates:

1. Credit Profile Analysis: Review your credit history at the time
2. Market Comparison: Compare with rates offered by other lenders
3. FCA Benchmarks: Use official regulatory data
4. Expert Assessment: Professional evaluation of your circumstances

Generally, car finance compensation is not subject to income tax, but there are some considerations:

📋 HMRC Guidance:

According to HMRC guidance:

• Compensation for overcharging is generally not taxable income
• You're being restored to the position you should have been in
• This is different from earning new income
• Interest may be taxable if it exceeds certain thresholds

💡 Practical Advice:

• Keep Records: Save all compensation documentation
• Small Awards: Under £5,000 rarely have tax implications
• Large Awards: Over £10,000 may warrant professional tax advice
• Business Use: Different rules apply if vehicle was used for business

Important: This is general guidance only. For specific tax advice, especially on large compensation awards, consult a qualified accountant or tax advisor.

The timeline varies depending on several factors, but here's what to expect:

🚀 Factors That Speed Up the Process:

• Complete Documentation: Having all necessary paperwork
• Clear-Cut Cases: Obviously excessive rates with good evidence
• Responsive Lenders: Some companies process claims faster
• Straightforward Finances: Simple agreements without complications
• Prompt Responses: Quick replies to lender requests

⏳ Factors That May Delay the Process:

• Missing Documents: Time needed to gather evidence
• Complex Cases: Multiple agreements or unusual circumstances
• Lender Delays: Some companies take the full 8 weeks
• Disputed Facts: Disagreements about rates or disclosure
• FOS Backlog: Financial Ombudsman Service caseload

The Financial Ombudsman Service (FOS) is the free, independent service that resolves disputes between consumers and financial companies when direct complaints don't succeed.

⚖️ What is the FOS?

• Independent Authority: Free dispute resolution service
• Legal Powers: Can make binding decisions on financial companies
• Consumer Protection: Exists to protect consumer rights
• No Cost: Completely free service for consumers
• Final Authority: Decisions are binding on companies (not consumers)

📋 FOS Process for Car Finance Claims:

1. Referral (6 months time limit): Must refer within 6 months of final response
2. Initial Review (2-4 weeks): FOS checks case is eligible
3. Investigation (3-6 months): Detailed review of evidence
4. Provisional Decision: Initial findings shared with both parties
5. Final Decision: Binding determination issued

💰 FOS Powers and Compensation Limits:

• Maximum Award: £430,000 for complaints after April 2019
• Binding Decisions: Companies must comply within 28 days
• Additional Compensation: Can award for distress and inconvenience
• Interest Payments: 8% annual interest on refunded amounts

📈 FOS Car Finance Success Rates:

• Overall Success Rate: 65-70% for DCA complaints
• Full Success: 40% receive full compensation requested
• Partial Success: 25% receive some compensation
• No Success: 30-35% receive no compensation

We believe in transparent, fair pricing that puts you in control of your claim:

🎯 What's Included in Your £29.99:

• Professional Assessment: Expert analysis of your case
• Tailored Complaint Letter: Legally formatted, specific to your situation
• Submission Guidance: Clear instructions on how to submit
• Progress Tracking: Dashboard to monitor your claim
• Expert Support: Email and phone support throughout
• Response Analysis: Help understanding lender responses
• FOS Support: Assistance with Financial Ombudsman referrals
• Document Templates: Additional letters if needed

💡 Value Comparison:

Service Type	Cost	Value on £3,000 Claim
Our Service	£29.99	You keep £2,970.01
Claims Management Company	25-40% + VAT	You keep £1,800-£2,250
Solicitor	£150-£500/hour	£1,500-£5,000+ in fees

No, we believe in complete transparency. Our £29.99 fee covers everything you need to pursue your claim successfully.

💳 Payment Options:

• Secure Online Payment: Credit/debit cards via Stripe
• PayPal: Available for added security
• Bank Transfer: For large organizations
• One-Time Payment: No subscriptions or recurring charges

🚫 We Never Charge For:

• Initial eligibility assessment
• Phone consultations
• Email support and guidance
• Document revisions or updates
• Progress monitoring
• FOS referral assistance
• Settlement negotiation advice

As a consumer, you have several important legal rights when it comes to car finance:

🏛️ Key Consumer Rights:

• Fair Treatment: Right to fair dealing under Consumer Credit Act
• Clear Information: Right to transparent information about costs and commission
• Complaint Rights: Right to complain about poor service or mis-selling
• Compensation: Right to compensation for financial losses
• FOS Access: Right to free dispute resolution
• Data Access: Right to access your personal data and records

⚖️ Your Rights Regarding Commission:

• Disclosure: You should have been told about commission arrangements
• Fair Rates: Interest rates should reflect your creditworthiness
• No Conflicts: Adviser should not have undisclosed conflicts of interest
• Best Interests: Advice should be in your best interests

🔍 What Constitutes Mis-Selling:

• Hidden commission arrangements (DCAs)
• Excessive interest rates for your risk profile
• Pressure selling or inappropriate advice
• Failure to explain terms and conditions
• Unsuitable finance products for your circumstances

Yes, there are several time limits that could affect your ability to claim compensation:

🕐 Calculating Time Limits for DCA Claims:

For most car finance claims, the relevant dates are:

• Event Date: When you signed the finance agreement
• Knowledge Date: When you became aware of potential mis-selling
• FCA Ban: January 28, 2021 (when DCAs were banned)
• Media Coverage: Increased awareness from 2019 onwards

🚨 Don't Delay - Act Now:

• Time Limits Are Strict: Once expired, you lose the right to claim
• Evidence Preservation: Documents may be destroyed over time
• Memory Fades: Details become harder to recall
• Company Changes: Lenders may merge or close

📋 What If I'm Close to a Time Limit?

• Submit a complaint immediately to preserve your rights
• Include a note about potential time limit issues
• Argue that the knowledge date was recent
• Seek legal advice if time limits have arguably expired

If your original finance company has closed down, you may still be able to claim compensation through several routes:

🔄 Successor Companies:

• Business Transfer: Many finance companies are sold to other firms
• Book Transfer: Loan books often transferred to new companies
• Group Companies: Part of larger financial groups
• Regulatory Records: FCA maintains records of business transfers

🛡️ Protection Schemes:

Financial Services Compensation Scheme (FSCS):

• Coverage: Up to £85,000 for eligible complaints
• Eligibility: Company must be in default and eligible
• Time Limits: Usually must claim within 6 years
• Process: Apply directly to FSCS

💼 Professional Indemnity Insurance:

• Former directors and employees may have insurance coverage
• Covers professional negligence and mis-selling
• Usually available for several years after closure
• May require legal action to access

⚖️ Legal Options:

• Director Liability: Personal liability in some circumstances
• Insurance Claims: Professional indemnity or errors & omissions
• Insolvency Claims: Claims against company assets in liquidation
• Group Liability: Parent company responsibility

Don't give up! Even if your original lender has closed, there are often alternative routes to compensation. We can help you navigate these options.