How to Find the Details to Make a Car Finance Claim
If you have had PCP car finance in the past, you may be wondering whether you could make a claim, especially with a lot of news and mentions in the media.
As it stands, more than 12.1 million agreements for car finance in the UK between 2007 and 2021 were sold with hidden commissions – allowing the average compensation for a motorist of around £829 per vehicle.
You will make this claim against your car finance provider, such as VW, Audi or BMW Financial Services.
Whilst you might be scrambling trying to find this information from almost 20 years ago, the good news is that you do not necessarily need to have every document from your old car finance agreement. There are several ways to track down the details you need.
What information do you need to make a PCP car finance claim?
If helps to have the following details when making a car finance claim against the financial provider you used:
- Original car finance agreement
- Your finance agreement reference number
- The dates of the agreement
- The name and details of the car dealer
- The car’s registration number
- Old bank statements showing your finance payments
This can make it much easier to identify the correct agreement and the finance company involved. If you still have paperwork from when you bought the car, check old files, emails or documents for your finance agreement.
You may also need the dates of the agreement. This could include when the finance started and when it ended. Even an approximate date can be useful when trying to locate an old agreement.
The name and details of the car dealer can also help. Think about where you bought the vehicle and whether it was a main dealer, independent garage or used car dealership.
Another useful detail is the car’s registration number. If you still remember the registration number of the vehicle, this can help identify the car and potentially link it to the finance agreement.
Finally, old bank statements showing your finance payments can be useful. These may show the name of the finance company and the regular payments that were made towards the agreement.
What if you do not have the paperwork from your original car agreement?
It is not the end of the world if you cannot find these details. Many people will not have kept paperwork from a car they bought several years ago. You may also have changed banks, moved house or simply lost the documents over time.
The Financial Conduct Authority says consumers can try checking old bank statements, contacting the dealer or checking their credit file when trying to identify an old lender.
A claims management company can also help with this process. Depending on the information available, they may be able to help trace an old agreement using basic information such as your name, the name of the dealer and the car finance company.
This can be particularly useful if you have had several cars over the years and cannot remember exactly which finance company was used.
Can a claims management company make the claim for you?
For some people, using a claims management company can make the process easier.
Rather than searching through old paperwork, identifying the lender and making the complaint yourself, the company can handle much of the process on your behalf.
However, there is a cost involved. Claims management companies can charge a percentage of any compensation you receive. The FCA warns that fees can be as high as 36%, including VAT, depending on the firm and agreement.
This means it is important to check the company’s terms before signing up. You should understand exactly what percentage they will charge and how much you could be left with if your claim is successful.
It is also worth remembering that you do not have to use a claims management company. The FCA provides free information and tools to help consumers complain directly to their lender.
How long does a car finance claim take?
Once a complaint has been submitted, you would typically expect to hear from the lender within around 8 to 12 weeks under normal complaint-handling timescales.
If the claim is successful, payment can take longer. A general expectation could be anywhere from around three to 12 months from starting the process, depending on the circumstances of the claim and how it is handled.
However, the current FCA motor finance redress scheme has been legally challenged and parts of the scheme have been suspended. This means compensation payments under the scheme are currently delayed while the legal process continues. Other sources state that the official deadline for making claims is August 2027.
Getting started
The best place to start is by gathering whatever information you can find.
Look for your old finance agreement, check bank statements, find the car’s registration number and write down the dealer and finance company involved.
Don’t worry if you cannot find everything. Even limited information may be enough to start tracing an old agreement, particularly if you choose to use a claims management company.
The important thing is to check your options, understand any fees involved and make sure you are comfortable with the process before submitting your car finance claim.
