Car Finance Claim Calculator 2026/27
If you took out car finance before January 2021, you may be owed compensation for hidden commission. On a typical £15,000 PCP deal over 48 months, the hidden commission could be £1,000 to £2,500. The FCA is currently reviewing millions of car finance agreements. Use our calculator to estimate your potential claim.
Figures verified against HMRC 2026/27 rates on .
Written by James HartleyCIMA
Calculator
The amount borrowed, not the car price
Agreements before 2021 covered by FCA DCA review
For your reference only - not used in calculation
Potentially eligible for FCA redress
Agreements taken before January 2021 may be eligible for the FCA redress scheme.
Results
You may be owed
£702 to £1,404
Based on 7 years of 8% statutory interest · commission estimated at 25 to 50% of interest
- Total interest paid£1,800.00
- Estimated commission (low)£450
- Estimated commission (high)£900
- Statutory interest added£252 to £504
Claim Breakdown
How to Make a Claim - Next Steps
Typical claim process takes 8 to 12 weeks. You do not need a claims management company.
Find your finance agreement
Locate your original PCP or HP agreement. Your lender must provide a copy on request.
Check the date
Agreements before January 2021 are covered by the FCA Discretionary Commission Arrangement (DCA) review.
Contact your lender directly
Write to your finance provider citing the FCA's January 2024 guidance. You do not need a claims company.
Await the FCA deadline
The FCA has paused the 8-week response requirement while it sets up a redress scheme. Expected outcome: 2025.
Estimates only. Commission rates varied by lender (typically 25 to 50% of total interest). Actual claim amounts depend on specific agreement terms. The 8% statutory interest is calculated from the year the agreement was taken out to today. This calculator is for guidance only and does not constitute legal or financial advice.
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How Car Finance Claim Calculator 2026/27 Works
What this calculator estimates
This calculator estimates the potential compensation you may be owed if your car finance agreement included a Discretionary Commission Arrangement (DCA). It calculates:
- Total interest paid - total repaid minus the amount you borrowed.
- Estimated hidden commission - typically 25-50% of total interest paid.
- 8% statutory interest - added from the year of the agreement to today under the Consumer Credit Act.
Why DCA commission may entitle you to compensation
Before January 2021, car finance lenders allowed dealers and brokers to set interest rates within a range. Brokers earned higher commission by setting higher rates - a clear conflict of interest. The FCA banned DCAs in January 2021 and is now investigating whether lenders should compensate affected customers.
The FCA redress scheme
Following the Supreme Court ruling in October 2024, the FCA is designing a redress scheme that will require lenders to proactively compensate customers. You do not need to wait - you can complain to your lender now. If they reject your complaint, take it to the Financial Ombudsman Service (FOS) within 6 months, free of charge.
You do not need a claims company
Claims management companies (CMCs) typically charge 20 to 30% of any compensation. The process is straightforward: write to your lender, cite the FCA's guidance, and escalate to the FOS if necessary. Keep 100% of your compensation. Read our car finance claims guide for the full free complaint route.
Frequently Asked Questions
Your car finance may have been mis-sold if it was a PCP or HP agreement taken out before January 2021 and your dealer or broker was paid a 'discretionary commission arrangement' (DCA) by the lender. Under a DCA, brokers could set their own interest rate - and earn more commission by setting a higher rate. You were likely never told about this. The FCA has confirmed that millions of agreements may have involved hidden commission.
A discretionary commission arrangement (DCA) was a type of commission structure used by car finance lenders before January 2021. It allowed car dealers and brokers to choose the interest rate offered to customers within a range set by the lender - and earn higher commission by setting a higher rate. This created a conflict of interest, as dealers were incentivised to charge customers more interest. The FCA banned DCAs in January 2021.
Typically 8 to 12 weeks under normal circumstances. However, the FCA has paused the standard 8-week response requirement while it designs a redress scheme for DCA mis-selling. The FCA expects to announce its redress scheme by May 2025. Once the scheme launches, lenders will be required to proactively contact affected customers and offer compensation.
No - you can make a claim directly to your lender or finance provider for free. Claims management companies (CMCs) typically charge 20-30% of any compensation you receive. The Financial Ombudsman Service (FOS) is also free to use. If your lender rejects your complaint, escalate to the FOS within 6 months of the final response letter.
In January 2024, the Financial Conduct Authority (FCA) launched a review into whether lenders using DCAs caused widespread customer harm. The Supreme Court ruled in October 2024 that DCA commission was unlawful. The FCA is now designing a redress scheme which will require lenders to compensate affected customers. The total redress is estimated at £25 to £50 billion industry-wide.
Yes. Paying off your finance agreement does not affect your eligibility to claim. What matters is whether a DCA was in place when the agreement was taken out (before January 2021) and whether you were overcharged as a result. Even if the finance was fully repaid years ago, you can still complain to the lender and seek compensation.
Car Finance Claim Starter Pack
Template letter to send to your lender, FOS complaint template, DCA evidence checklist, and step-by-step claim guide. Everything you need to claim without a CMC.
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.