A Timeline for Complaining About Your Car Finance

When something goes wrong with a car finance agreement, the complaints process follows a set sequence: the lender first, then the Financial Ombudsman Service if you stay unhappy. Each stage carries its own deadline, and some work in your favour only if you act. This timeline sets out what happens at each point, what to have ready and where the clock can run longer than usual.

When You Might Have Grounds to Complain

Complaints about cars bought on finance tend to fall into a few broad groups: the car was faulty or not of satisfactory quality; the agreement was mis-sold or misdescribed, for example where a key term such as the annual mileage allowance did not match what you were told; you were charged amounts at the end of the agreement that you believe were wrong; the borrowing was unaffordable, or you were not treated fairly when you fell into financial difficulty; or commission paid by the lender to the broker who arranged the deal was not properly disclosed, or you are unhappy with its size. If you are reviewing a PCP agreement you have already signed, Mistakes to Avoid When Signing a PCP Car Finance Deal lists the terms people most often overlook.

Commission is worth understanding before you write anything. Many finance providers pay the dealer or credit broker a fee for arranging the agreement. Under a discretionary commission arrangement, or DCA, the broker could set or change the interest rate you paid, and a higher rate usually meant more commission for the broker. The Financial Conduct Authority (FCA) banned DCAs in January 2021. Other arrangements still in use are mainly a fixed commission, usually a percentage of the amount borrowed, or a flat fee per agreement.

The FCA has also set up a redress scheme for certain agreements taken out between 6 April 2007 and 1 November 2024, where you were not told about particular arrangements between the lender and the broker. These include a DCA; a high commission arrangement, where the commission came to 39% or more of the total cost of credit (the interest and charges on the borrowing) and 10% or more of the loan; and contractual ties, where the broker used only one lender, or one lender had the first chance to lend to you. Commission of £120 or less on agreements starting before 1 April 2014, or £150 or less from that date, is treated as unlikely to have influenced the broker. The scheme does not cover Personal Contract Hire leases, complaints already decided by the ombudsman or a court, or high value loans. The FCA estimates that 37% of agreements from that period qualify, around 12.1 million agreements.

Find the Lender and Check the Firm

Before you can complain, you need to know who actually lent you the money. The dealership sold you the car, but the firm that provided the money is typically a different business altogether. If you are not sure who that is, the FCA suggests contacting the dealer where you bought the car, or checking your credit file, where the lender’s name often appears. Equifax runs a Car Finance Checker app that includes most car finance records back to 2007, and Experian and TransUnion let you view your file for free.

The FCA publishes a list of car finance lenders with their contact details, complaint forms and a template complaint letter you can download and fill in. The list also helps you confirm you are dealing with the genuine firm, because the FCA warns about scams and advises matching the details you hold against its table. If you are unsure whether a phone number is genuine, ring the FCA on 0300 124 8899 and its team will connect you to your lender. You can also use the Financial Services Register to check the firm is authorised.

Step One: Send Your Complaint to the Lender

Firms the FCA authorises must have a process for resolving complaints, and its rules say complaints must be handled fairly and without avoidable delay. You do not need a claims management company or a law firm to complain.

Put the complaint in writing where you can, and include:

• your name, address and the agreement reference or vehicle details
• when you took out the finance, and through which dealer or broker
• what you were told at the time, and what actually happened
• copies of paperwork that supports your account, such as the agreement or the pre-contract information
• what you want the lender to do to put things right

Keep a note of when and how you got in touch, along with any phone calls. If you signed up with a claims firm and would rather cancel, you may be asked for an exit fee, which must be reasonable and reflect the work actually done.

Watch out

You can complain to your lender and take a case to the Financial Ombudsman Service yourself, free of charge. Claims management companies and law firms charge fees, and the FCA has warned about misleading adverts from some of them.

The Lender’s Response: Acknowledgement and Eight Weeks

Two clocks start once the lender has your complaint. If the firm resolves the complaint within 3 business days, that can be the end of the matter. Otherwise, it must reply in writing to confirm it has received it.

In general, the firm must then write to you with the result within 8 weeks. That reply has to make clear whether the complaint succeeded or failed, or set out why the firm needs more time to investigate.

Car finance commission complaints can take longer. The FCA has allowed lenders extra time to put the redress scheme in place, so several months may pass before you learn whether redress will be paid in your case. If you have already complained, wait until your lender comes back to you in line with the scheme’s timetable. If you are unhappy with the answer, or want to query it, go back to the lender and ask for a redress determination. If the case later reaches the ombudsman, its review would be limited to whether the lender stuck to the FCA’s scheme rules, so keep a note of why you think it did not.

Step Two: Taking Your Complaint to the Financial Ombudsman Service

If you disagree with the lender’s final response, or you do not hear anything within 8 weeks, you can take the complaint to the Financial Ombudsman Service. It is an independent body that resolves disagreements between financial firms and their customers, and it charges customers nothing.

The ombudsman first confirms the complaint falls within its scope and, if it does, investigates. It asks both sides for information. From you, that typically means your account of events plus anything that supports it: the finance agreement, the pre-contract information you were given, adverts or brochures for the car, and any letters or emails with the lender. From the lender, it asks for its own records, including contact and complaint notes and, for complaints about payments or financial difficulty, a statement of account showing the payment history.

With the evidence in hand, it discusses the case with the firm and reaches a view on whether the complaint should be upheld. You can phone the service on 0300 123 9 123, Monday to Friday, 8am to 5pm, if you would rather talk it through first.

Complaints about being treated unfairly while in financial difficulty fit this process too. If that is your situation, Falling Behind on Car Finance: What to Do and When explains what to do and when.

The Time Limits That Apply

There are deadlines on both sides. For you, the key deadline is this: as a rule, you have 6 years from when the problem occurred to raise it, or, if you only found out later, 3 years from the point you realised you had grounds.

Stage	What happens	The deadline
Complaining to the lender	Send your complaint and supporting documents	6 years from the issue arising, or 3 years from when you realised
Acknowledgement	Written confirmation unless the complaint is resolved within 3 business days	3 business days
Final response	The written result, upheld or rejected	8 weeks in general
Ombudsman referral	Free, independent review of the dispute	If you reject the final response, or hear nothing within 8 weeks

The 6 year and 3 year limits are the normal position, so a complaint outside them is not automatically closed, but you would need to explain the delay. If a long time has passed, or your paperwork is lost, it is still worth starting. The lender or the ombudsman can tell you where you stand.

What the Ombudsman Weighs and Can Decide

The ombudsman weighs everything both sides put forward and decides on the evidence, drawing on material from you, the firm and any relevant third parties. It also takes account of the regulator’s rules, guidance and standards as they stood when the events happened, which matters here because the rules on commission changed when DCAs were banned in January 2021.

Where the ombudsman finds for you, it can direct the firm to put things right. What that means depends on the case: for a mis-selling complaint it might concern how the agreement is treated, while the redress scheme sets out how commission-related compensation is calculated for the agreements it covers. For complaints already inside the scheme, the ombudsman’s review is limited to whether the lender followed the scheme’s rules, which is why the redress determination from your lender is a useful document to keep. If the complaint is not upheld, you are told why.

After a Decision: Payment Timelines Under the Redress Scheme

The redress scheme faces a legal challenge, and parts of it are on hold while that is resolved. The case is listed to be heard between 16 February and 3 March 2027, with a ruling expected in the months afterwards. While the challenge is live, lenders do not have to work out or pay compensation owed under the scheme, although some may choose to settle with customers in advance. If the scheme survives and no appeal follows, the FCA anticipates the first payments in 2027.

In practice, the timeline after a decision can stretch. If your complaint is handled under the scheme, expect months rather than weeks between the lender’s decision and any payment. Keeping your contact details current with the lender helps, since they will write to you when the position changes. If you have not yet complained and are worried about commission, the best first step is complaining to your lender rather than waiting.

More on this site

• What Happens When You End a PCP or HP Car Finance Deal Early: useful if your complaint involves end-of-agreement charges or early termination costs.
• What to Check Before You Sign an HP Car Finance Deal: the paperwork and figures to keep from day one, which form the core of most complaint evidence.

Your questions

How long does my lender have to respond to a car finance complaint?
Firms generally have 8 weeks to send you the result in writing. If they sort the problem out within 3 business days, the formal written process does not apply.

Do I need a claims company to claim car finance compensation?
No. You can complain to your lender yourself for free, and the FCA publishes a template complaint letter plus a list of lender complaint forms. The Financial Ombudsman Service is also free to use.

What is the time limit for complaining about car finance?
As a rule, you have 6 years from when the problem occurred, or 3 years from when you first realised you had grounds, whichever is later.

When will car finance commission payments be made?
The redress scheme faces a legal challenge, with the hearing listed for 16 February to 3 March 2027. If the scheme survives and there is no appeal, the FCA anticipates payments starting in 2027.