How do you claim for mis-sold car finance?

YOUR CONSUMER RIGHTS CHAMPION

- MARTYN JAMES

After years of consultations and debates, a compensation scheme for people mis-sold car finance deals has been announced by the Financial Conduct Authority (FCA).

I'd be willing to bet you're being pestered by adverts, emails and texts from claims management companies at the moment, making rather outlandish promises. I've had 20 texts alone... and I can't drive. So how does it work - and do you need to do anything? Here's what you need to know:

■You need to have been sold a motor finance agreement between April 6, 2007 and November 1, 2024.

■The compensation scheme only applies if you were misled into taking out an unfair contract, given inaccurate information or excessive commission was paid by the lender to the broker

■It's estimated that the scheme will apply to around four in 10 car loans (40%) sold during this period

■The FCA estimates that up to 12.1 million loans could be applicable for compensation