Think your car finance was mis‑sold in Wales? Here’s how to start your claim
If you live in Wales and had a car finance agreement that felt unclear, expensive, or rushed, you may be eligible for compensation. Many drivers across Cardiff, Swansea, Wrexham, and rural areas are now checking whether their Personal Contract Purchase (PCP) or Hire Purchase (HP) deals were mis‑sold.
But how exactly does the claims process work? Do you need a solicitor? Can you start without paperwork? And what happens once your complaint is submitted?
This guide walks through the full claims process for residents of Wales — step by step.
Step 1: Decide whether to claim directly or through a legal partner
You have two main options for starting a car finance claim:
- Claim on your own by contacting the lender or car dealership that sold you the agreement. This is free, but you’ll need to write your own complaint and possibly follow up with the Financial Ombudsman Service.
- Use a legal partner or claims management company that handles the complaint for you. Most work on a No Win, No Fee basis and only charge if the claim succeeds.
In Wales, both routes are available. If your agreement involved a major lender like Black Horse, Santander, or BMW Financial Services, you’re likely eligible either way.
Step 2: Use a secure claims checker (no paperwork needed)
One of the biggest myths about claiming compensation is that you need your old car finance paperwork. You don’t. Secure online tools can check your records using your:
- Full legal name
- Date of birth
- Address history (especially during the time of the finance agreement)
These systems link with credit agencies and vehicle databases, often returning matches within 1–2 minutes. This applies even if you’ve moved or changed your name since signing the deal.
Step 3: Receive confirmation of your eligibility
If your agreement shows signs of mis‑selling — like a high interest rate, lack of commission disclosure, or vague contract terms — you’ll be notified that your claim qualifies. At this point, a solicitor (if you’ve chosen one) will prepare the legal complaint.
Mis‑selling is most common in finance agreements signed between 2007 and 2020. Most Welsh drivers claiming refunds today fall into that period.
Step 4: Your complaint is submitted to the lender
The legal team sends a formal complaint to the lender, explaining how the deal was mis‑sold. The most common reasons include:
- Interest rates inflated without explanation
- Hidden commissions to brokers or dealerships
- Unclear ownership terms or balloon payments
- Lack of proper affordability checks
For example, a driver in Carmarthen financed a vehicle in 2016 through a broker who added 4% interest for commission. That driver is now receiving over £2,000 in compensation.
Step 5: What happens during the FCA pause?
As of now, lenders in the UK (including Wales) are not required to respond to car finance complaints until 4 December 2025. This is part of the FCA’s investigation into mis‑selling through discretionary commission arrangements (DCAs).
That said, submitting your complaint now means it’s already logged — and will be first in line when responses resume.
Step 6: What happens after the pause?
Once the FCA lifts the freeze, lenders must begin responding to complaints again. At this point, one of three outcomes is possible:
- Compensation is approved and a refund offer is made
- The complaint is rejected, and you can escalate to the Financial Ombudsman
- A redress scheme is announced, and your case is handled under those new rules
Legal partners will guide you through this process — or if you filed on your own, you can ask the Ombudsman for help.
Step 7: Receive your payout
If your claim is approved, the refund is usually paid within a few weeks. Compensation may include:
- Refund of excess interest charges
- Return of commission fees where applicable
- Additional interest added by the lender as part of the refund
The average payout in Wales is between £1,100 and £1,600, but larger claims — particularly with luxury or long-term agreements — can reach £3,000–£5,000 or more.
Still unsure if your claim qualifies?
Mis‑selling isn’t always obvious. If any of the following apply, your agreement may not have been fair:
- You weren’t told about broker commissions
- The interest rate seemed high but wasn’t explained
- You didn’t fully understand what you were signing
- No one asked about your income or budget
These are the exact patterns that have triggered thousands of claims in Wales and across the UK. The sooner you check, the sooner you can reserve your place in the refund process.
Welsh drivers are protected too
The FCA’s review covers all regions of the UK equally. Whether you signed your agreement in Swansea, Bangor, or rural Powys, your rights are protected. And your refund — if eligible — is just as valid as anyone else’s.
