Have you received an unexpected phone call telling you that you could be owed compensation for mis-sold car finance? With claims being compared to the PPI scandal and the diesel emissions controversy, more people across the UK are hearing about potential payouts. However, not every call or text message should be trusted.

While some companies offer legitimate help with car finance claims, others may use misleading promises, aggressive sales tactics or even fraudulent methods to get your personal information. Knowing how to approach these calls with caution can help you protect yourself and make informed decisions.

Why Are You Receiving Calls About Car Finance Claims?

The issue relates to certain car finance agreements where customers may not have been properly informed about commission arrangements between lenders, brokers and car dealers. In some circumstances, these arrangements may have affected the interest rates customers paid or the way finance was sold.

Estimates suggest that around 12.1 million agreements could be eligible under proposed compensation arrangements, with average compensation estimated at £829 per vehicle (Source: Claim Smart). These figures have attracted considerable interest from claims management companies looking to help customers pursue potential claims.

However, receiving a call does not automatically mean you are eligible for compensation. Your circumstances, the type of agreement you had and the applicable rules will determine whether you have a valid claim.

Do Not Feel Pressured to Make a Decision

One of the most important things to remember is that you do not need to agree to anything during an unexpected phone call.

Some callers may suggest that you need to act quickly to avoid missing out on compensation – and even though this is true with a deadline for car finance claims looming, you should take an every moment to verify that the company is legitimate. Others might promise thousands of pounds without knowing enough about your agreement to assess your eligibility properly.

Be cautious of guaranteed payouts, urgent deadlines that cannot be independently verified or requests for immediate payment. Take your time, ask questions and end the call if you feel uncomfortable.

A genuine opportunity to make a complaint should not require you to make a rushed decision.

Check Who Is Calling You

Before sharing personal details, find out which company the caller represents. Ask for its full business name, website and contact information, then check these details independently.

You can search the Financial Conduct Authority (FCA) Register to check whether the business has the appropriate regulatory status for the services it offers. Make sure the contact details match those listed on the register, as scammers may impersonate genuine businesses.

It is also worth looking for independent customer reviews. Repeated complaints about hidden charges, poor communication or aggressive sales tactics should prompt further investigation.

Never assume a caller is legitimate simply because they know your name, vehicle registration or previous finance provider.

Be Careful About Sharing Personal Information

A caller may ask for details about your car finance agreement to check whether you could be eligible for compensation. While some information may be needed to assess a genuine claim, you should establish who you are speaking to before providing anything sensitive.

Never share online banking passwords, one-time security codes or other information that could allow someone to access your accounts. Avoid clicking links sent during an unexpected call until you have verified the company.

If you suspect a call is fraudulent, end it and contact your lender directly using details from its official website or your original finance paperwork.

Understand the Fees Before Agreeing to a Car Finance Claim

Many claims management companies advertise a no-win, no-fee service. However, this does not necessarily mean their services are free.

Some companies may charge commission of up to 30% of a successful compensation payment, depending on their terms and applicable rules. For example, a 30% fee on £829 would be £248.70, leaving £580.30 before any other deductions.

This needs to be weighed up, because a legitimate claims management company could streamline the process and make it more likely for your claim to be approved. 

But the FCA and MoneySavingExpert website offer free guidance on how to make a claim yourself and there are other places that help you prepare a car finance complaint for free – therefore you won’t need to share your compensation if successfl.

Before signing a contract, check the commission rate, VAT, cancellation terms and any additional charges. Ask for a clear explanation of how much you could receive after fees.

Remember, you can complain directly to your finance lender without paying a claims management company to act for you.

What Should You Do If You Suspect a Scam?

If you receive a suspicious call, do not provide personal or financial information. You can report suspected scam calls through the appropriate UK reporting channels. Suspicious text messages can be forwarded to 7726.

If you have already shared financial information, contact your bank promptly if your accounts could be at risk.

For reliable information about car finance compensation, check the FCA’s official website rather than relying on claims made by callers.

Take Your Time and Make an Informed Choice

Car finance compensation may be a genuine opportunity for eligible customers, but that does not mean every caller offering help can be trusted.

By checking a company’s credentials, understanding its fees and refusing to be pressured into making quick decisions, you can protect yourself from potential scams.

The safest approach is to investigate your eligibility independently, contact your lender directly if necessary and remember that you do not have to use a claims management company to make a complaint.