How to Complain About Car Finance Mis-Selling (UK)

Most people lose complaints not because they are wrong, but because they complain in a way that is hard to investigate. In the UK, complaints work best when they are structured, evidence-led, and time-aware.

This guide shows you how to complain properly—what to write, what to gather, where to send it, what deadlines matter, and how to escalate if you are ignored or dismissed.

Part of the full hub: Car finance mis-selling explained →

What a complaint is (and isn’t)

A complaint is a formal request for a business to investigate a problem and put it right. It is not a fight. It is not a threat. It is a documented process that creates obligations for the firm.

You increase your chances immediately if you write like this:

• Clear timeline
• What you were told vs what you understood
• What was not disclosed (if relevant)
• Why it mattered (impact)
• What you want as a resolution

Complaint handlers are trained to look for facts. If your message is emotional and messy, it becomes easy to dismiss as “unclear”.

When you should complain

Complain as soon as you suspect something was unfair or not transparent at the point of sale. With car finance mis-selling, the problem is often about how the agreement was sold—not whether you paid on time, not whether the car was good, and not whether you managed your monthly payments.

People often complain years later after reading about commission or discretionary interest rates. That can still be possible depending on circumstances, but the longer you leave it, the more important it becomes to explain when and how you only recently became aware.

Related: Who is eligible for car finance mis-selling? →

Preparation: evidence + timeline

You do not need a perfect bundle of documents to complain. But you do need enough to allow the lender to locate your agreement and understand your concern.

What evidence to gather (practical checklist)

• Finance agreement (PCP / Hire Purchase) if you have it
• Any emails/letters from the dealer or lender
• Monthly statements (if available)
• Car registration number (very useful)
• Dealer name and location
• Lender name (the finance company)
• Approximate date you took the agreement
• Address history (if you moved since)

If you don’t have documents, do not panic. Many lenders can locate agreements from basic identifiers (name, DOB, address, reg plate, dates).

Build a simple timeline (it strengthens everything)

Write your case as a timeline, even if it’s short. This helps the complaint handler follow the story and reduces “back and forth”.

• When you visited the dealer
• What you asked for (budget / monthly payment / term)
• What you were told about rate and approval
• Whether alternatives were discussed (cheaper rate, different lender)
• What you were not told (commission, rate discretion, total cost)
• When you realised there may have been an issue

How to structure the complaint letter

A winning complaint reads like a structured report, not like an argument. Use the structure below. Keep it factual, direct, and easy to investigate.

1) Start clearly: “This is a formal complaint”

Your first sentence matters. It tells the firm to route your message into the official complaints process rather than “customer service”.

2) Identify the agreement

Provide the agreement number if you have it. If not, provide enough details to find it (name, address history, vehicle registration, dealer name, approximate dates).

3) Explain what happened

Use short paragraphs. Avoid legal words. Avoid assumptions. Write what you remember, including what the salesperson emphasised (monthly payment, “approval”, “this is the best rate”).

4) Explain what was unfair or not transparent

In car finance mis-selling, concerns often relate to how the deal was priced and presented, including whether you were told that the dealer could influence the interest rate and whether commission existed and was disclosed clearly.

5) State the impact

Keep this simple and believable. For example: you paid a higher interest rate than you likely would have agreed to if you had known the dealer could increase it for commission; you were pushed into a product without proper comparison; you focused on monthly payments rather than total cost.

6) Ask for a clear resolution

Complaint handlers need a clear “ask”. Typical asks include:

• Full investigation and a written final response
• Disclosure of commission arrangements (if any)
• Explanation of how your interest rate was set
• Refund/recalculation of interest (where appropriate)
• Compensation for unfairness/distress/inconvenience (where appropriate)

Where to send the complaint

For finance-related issues, the lender is often the main route, because the lender is responsible for the finance agreement. If the issue is mainly about the dealer’s conduct, you can also complain to the dealer. Many people complain to both to avoid gaps.

Use a channel that creates a written record: email is best. If you complain by phone, follow up with an email immediately summarising what was said and keep your call notes.

Deadlines and what “8 weeks” means

In many UK financial complaints, firms typically have up to 8 weeks to provide a final response. This is why you should always keep evidence of the date you submitted your complaint.

If you receive a “final response” and you disagree with it, you may have a route to escalate. If you do not receive a final response in time, you may also be able to escalate based on delay.

Related: How hidden commission worked in car finance →

Escalation: what to do if you get a weak response

Companies often reply with a standard letter that does not address your specific points. Do not assume that means the case is dead. Strong escalation is about being precise, not louder.

Step 1: Reply and force clarity

If they ignore key questions, respond and list the questions again in bullet points. Ask them to answer each point.

Step 2: Request evidence and internal notes

Ask for confirmation of any commission arrangement and for an explanation of how the interest rate was determined. Ask what disclosures were provided and in what format.

Step 3: Keep everything for escalation routes

Keep the complaint, acknowledgement, final response letter, and any supporting documents together. Escalation bodies typically expect you to show you complained first.

Common mistakes that kill complaints

• Writing emotionally (“you scammed me”) instead of factually (“I was not told X”)
• Not stating what outcome you want
• Not giving enough identifiers to locate your agreement
• Only complaining by phone without a written follow-up
• Sending a complaint with no timeline
• Mixing multiple unrelated issues into one complaint (keep it focused)

Copy-paste complaint template (edit to your facts)

Use the template below and edit the bracketed parts. Keep it honest. If you’re not sure about something, say so. Clarity beats confidence.

Subject: Formal complaint – Car finance agreement [Agreement number if known]

Dear Complaints Team,

I am writing to raise a formal complaint regarding my car finance agreement.

Agreement details (as many as you can provide):
- Full name: [your name]
- Date of birth: [DOB]
- Address at the time: [address]
- Current address (if different): [address]
- Vehicle registration: [REG]
- Dealer name/location: [dealer]
- Approximate start date: [month/year]
- Agreement number: [if known]

What happened:
On/around [date], I took out a [PCP / Hire Purchase] agreement arranged by [dealer] and financed by [lender]. At the point of sale, I was focused mainly on the monthly payment and relied on the information presented by the salesperson.

My concern:
I do not believe the agreement was sold in a fair and transparent way. In particular:
- I was not clearly told whether the dealer received commission and how this may have affected the interest rate.
- I was not clearly informed that the dealer could influence the interest rate offered to me (if applicable).
- I was not given a clear explanation of the total cost of credit and/or meaningful comparison of alternative rates.

Impact:
Had I been given clear and fair information at the time, I may have made a different decision, sought a lower rate, or chosen a different agreement. As a result, I believe I may have paid more interest than I otherwise would have.

What I want you to do:
1) Investigate my complaint and provide a written final response.
2) Confirm whether any commission was paid and disclose the nature of any commission arrangement.
3) Explain how my interest rate was determined and whether it was discretionary.
4) Provide appropriate redress, which may include recalculation/refund of interest and/or compensation where relevant.

Please acknowledge receipt of this complaint and confirm the date you consider it received for complaint-handling time limits.

Yours faithfully,
[Your name]
[Your phone number]
[Your email address]

Frequently asked questions

How long does a car finance lender have to respond?

Many UK financial complaints are handled under a process where firms typically have up to 8 weeks to issue a final response. Always keep proof of when you complained.

What if I don’t have my paperwork?

You can still complain. Provide identifiers: name, DOB, address history, car registration, dealer name, approximate dates, and lender name if known.

Do I need to complain to the dealer or the lender?

If the issue is about the finance agreement (rate, commission, disclosure), complain to the lender. If the issue is mainly about sales behaviour at the dealership, complain to the dealer as well. Many people do both to avoid gaps.

This guide is part of our complete explanation of car finance mis-selling in the UK.

Next: Who is eligible for car finance mis-selling? →