Reclaim247 Welcomes FCA Consultation as Car Finance Claims Surpass 500,000

The proposed compensation scheme confirms what many drivers have long suspected: their car finance deals may not have been as fair as they believed.

UNITED KINGDOM, October 10, 2025 /EINPresswire.com/ -- A consultation by the Financial Conduct Authority (FCA) into a redress scheme for mis-sold car finance has been welcomed by Reclaim247 as a major step forward for everyday drivers. With over 500,000 car finance claim checks now completed, the company says the official proposal validates what hundreds of thousands of people have already started to question.

“Drivers have been waiting for answers for a long time,” said Andrew Franks, Co-Founder of Reclaim247. “This consultation shows that their concerns were not only valid, but widespread. It is finally shining a light on issues people suspected but never had the proof to challenge.”

FCA Identifies Three Types of Mis-Selling
The FCA has now confirmed that millions of car finance agreements between April 2007 and November 2024 may have involved one of three unfair practices:
Discretionary Commission Arrangements – where brokers were allowed to increase the interest rate on a loan to boost their own commission, without telling the customer.
Unfairly High Commission – where the amount of commission paid to the broker was disproportionately high compared to the size of the loan, driving up the cost for the customer.
Contractually Tied Arrangements – where brokers or dealers gave the impression they were finding the best deal but were in fact tied to a single lender.
These forms of mis-selling are central to many of the car finance claims Reclaim247 has been supporting, including a growing number of PCP claims involving Personal Contract Purchase agreements with poorly explained terms or unexpected balloon payments.
“We have seen the same signs over and over,” added Franks. “People trusted their broker or lender, signed the deal, and only much later realised they were never told the full story. That is what mis-sold car finance often looks like.”

Making it Easy to Start, Even Without Paperwork
For many people, the hardest part is knowing where to begin. They worry they have lost the paperwork or forgotten who financed the vehicle. Reclaim247 removes that stress by allowing drivers to check their eligibility using just their name, address and date of birth.
The system is particularly helpful for those interested in PCP claims, where key issues like inflated interest or unexplained final payments may have gone unnoticed at the time.

Common Signs of Mis-Sold Car Finance
Reclaim247 hears the same issues from drivers time and again:
Interest rates that were not clearly explained
No mention of commission paid to the broker
Balloon payments that came as a surprise
Even if the agreement was signed more than ten years ago, Reclaim247 can search for historic finance agreements and uncover what happened behind the scenes.

Support Throughout the Journey
Anyone found eligible is paired with a regulated legal partner who also acts as their dedicated case handler. That means every claim is supported by someone with legal experience who also understands how personal these issues are for customers.
Drivers can manage their claim via Reclaim247’s secure online portal, where they can:
Track their claim’s progress
Upload any documents
Communicate directly with their legal partner
The goal is to make the process clear, supported and simple from start to finish.

No Win, No Fee. Free to Start.
There is no cost to begin and no pressure to move forward. Reclaim247 operates on a no win, no fee model for car finance claims. Customers only pay a success fee if compensation is successfully recovered.
“This is about fairness,” said Franks. “Most people just want to know if they were treated properly. Now, with this FCA consultation and a clear process in place, they can finally get the answers they deserve.”

Start Your Free Check Today
If you financed a car between 2007 and 2024 and something about the agreement did not feel right, Reclaim247 can help. Whether you are unsure about your original terms or believe you may have been affected by mis-sold car finance, the company’s free check can help uncover whether you are owed compensation for a PCP claim or car finance claim.
Start your free eligibility check at www.Reclaim247.co.uk.

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About Reclaim247
Reclaim247 is a multi-award-nominated claims management company specialising in car finance claims and PCP claims. The company supports UK drivers in identifying potential cases of mis-sold car finance, offering fast checks, personal legal support, and a fully managed no win, no fee service. With over 500,000 claimants represented, Reclaim247 is one of the most trusted names in the sector.

Andrew Franks
Reclaim247
333 006 8282
email us here

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