If you’ve paid off your car finance, ended your PCP, refinanced, or settled early, it’s easy to assume the door is closed. You might be thinking: “It’s finished now — so I can’t do anything about it.”

But here’s the truth: settling an agreement doesn’t automatically stop you from making a complaint or bringing a claim.

Why? Because the key question usually isn’t whether you still have the car — it’s whether the finance was sold fairly and transparently in the first place.

And this matters to a lot of people. The FCA’s research found 11% (around 6.1 million) of UK adults held motor finance in 2024. That’s millions of agreements and a lot of people who could be asking the same question as you right now.

What does “settled” mean in car finance?

When people say they’ve “settled” their car finance, they usually mean one of these:

• You made your final payment and the agreement ended normally

• You paid a settlement figure to clear the finance early

• You refinanced (switched finance, rolled things into a new deal, or changed lenders)

• You part-exchanged the car and the dealer cleared the old finance

• You handed the car back at the end of PCP (or you didn’t pay the balloon)

• You used voluntary termination (VT) on a hire purchase agreement

All of these can mean the agreement is finished. But that doesn’t confirm it was sold correctly.

If something was mis-sold at the start, the fact you’ve settled later is often just part of the timeline — not the end of the story.

The main reason you may still be able to claim after settlement

Car finance complaints usually focus on things like:

1) Commission not properly explained

A common issue is commission — where a broker or dealer gets paid for arranging your finance. The big concern is when that commission wasn’t properly disclosed, or where it may have influenced the interest rate or product you were offered.

This topic has become a major focus in the UK. The FCA has been consulting on an industry-wide compensation scheme for customers who were treated unfairly in motor finance between 2007 and 2024.

2) You were pushed towards a higher interest rate

Even if you were told the monthly payment, you may not have been given a clear, fair explanation of why the APR was what it was — or whether a different rate was available.

3) Affordability checks weren’t good enough

If the lender didn’t properly check whether you could realistically afford the payments, that can matter — especially if you struggled, had to refinance, or fell behind.

4) Key costs weren’t clearly explained

With PCP in particular, people often get stuck on the monthly cost and miss the bigger numbers:

• balloon payment

• total amount payable

• fees and charges

• mileage limits and condition charges

• what happens if you want to exit early

If you weren’t properly informed, that’s relevant — even if you later paid it off.

“But I signed the paperwork” — does that mean I can’t claim?

Not necessarily.

Signing paperwork isn’t the same as giving fully informed consent — especially when:

• you were in a hurry in the dealership

• you were focused on the monthly payment

• the paperwork was long and full of jargon

• you were told “this is standard”

• you didn’t get a clear explanation of commission or how the rate was set

A lot of motor finance is arranged at the point of sale, in the moment, when you’re trying to get the car sorted. That’s exactly where misunderstandings and poor explanations can happen.

What if you settled early?

Early settlement is common — and in some cases, it can be a sign something wasn’t right.

For example, you might have settled early because:

• the monthly payments became too much

• you realised later the total cost was far higher than expected

• you refinanced because you felt stuck

• you rolled negative equity into a new agreement

• you wanted out after your circumstances changed

None of that automatically blocks you from complaining.

What matters is whether your agreement had signs of unfairness or mis-selling when it was set up.

If you want a simple way to check, start on our Mis-Sold Finance Claims page.

What if the agreement ended normally (PCP finished, car handed back)?

You can still potentially claim.

A PCP ending “as planned” doesn’t prove the deal was fair — it just means it reached its end date.

If the issue is commission, hidden costs, affordability, or how the deal was presented to you, then the fact you handed the car back doesn’t necessarily change the complaint itself.

What if you part-exchanged the car and the dealer settled the finance?

This is one of the most common situations.

A part exchange often means the dealer clears the outstanding finance as part of the deal — but that’s just how the agreement ended. It doesn’t confirm the original finance was properly explained or free from mis-selling concerns.

What could you be owed?

It depends on what happened in your case, but outcomes can include:

• refund of certain costs/charges linked to an unfair agreement

• compensation if you were treated unfairly

• interest added to refunded amounts (where relevant, depending on route and outcome)

Claim First’s own service page says many people may be owed £1,500–£5,000 (depending on the agreement and what went wrong).

The key point: your agreement being finished doesn’t automatically mean you’re not owed anything.

Will complaining affect your credit score?

In most cases, making a complaint doesn’t harm your credit score by itself.

You’re not applying for new borrowing — you’re challenging how an existing agreement was sold.

Claim First also states that making a claim through them does not affect your credit score or financial standing.

Time limits: don’t leave it too long

Time limits can get complicated because there are different routes (complaint to a firm, escalation to the Ombudsman, or legal action), and the rules can vary depending on what your complaint is about.

As a general guide, the Financial Ombudsman Service says you usually need to complain within:

• 6 years of the problem happening, or

• 3 years from when you became aware (or should reasonably have become aware) you had cause to complain

For some motor finance commission complaints, the FCA has also set special timing rules while it works through the wider scheme and complaint-handling process. For example, the FCA confirmed consumers have until the later of 29 July 2026 or 15 months from the date of the firm’s final response letter to refer certain complaints to the Financial Ombudsman (instead of the usual 6 months).

Also worth noting: the FCA has said the current pause on firms handling certain motor finance complaints is expected to lift on 31 May 2026.

The safest move is to check now even if you’re not sure you’ve got all the paperwork.

What evidence should you gather (even if the agreement is closed)?

Don’t worry if you don’t have everything. But if you can, try to pull together:

• the finance agreement (PCP/HP paperwork)

• settlement letter or final statement

• emails from the dealer or lender

• the order form / invoice

• anything showing APR, total payable, fees

• a quick note of what you remember being said in the dealership

If you’ve lost documents, your lender may be able to provide copies, and your credit file may help confirm the lender and dates.

Real-life scenarios: do any of these sound like you?

“I paid it off years ago”

You may still be able to complain if the mis-selling issue wasn’t obvious at the time. The “date you became aware” concept is important in many complaints.

“I refinanced into a new deal”

Refinancing doesn’t erase what happened in the previous agreement. In fact, refinancing can sometimes be a sign the first deal wasn’t sustainable or was poorly explained.

“I handed the car back at the end of PCP”

That’s a normal ending — but the complaint is about how the finance was sold and whether you were treated fairly.

“I settled early because the payments were too high”

Affordability and fairness can be key issues. If the agreement wasn’t right for you, it’s worth checking.

How Claim First helps (without making your life harder)

The whole point is to keep this simple.

When you start a claim, you’re not signing up to stress. You’re getting support to work out what happened and what you can do next.

FAQs

Can I claim it if my PCP finished and I handed the car back?

Yes, potentially. The agreement ending normally doesn’t automatically prevent a complaint. If the finance was mis-sold — for example, commission wasn’t properly explained, the rate was unfairly influenced, or key costs weren’t made clear — you may still have a case.

Can I claim it if I settled early?

Often, yes. Early settlement doesn’t wipe out what happened at the start of the agreement. What matters is whether the agreement was sold fairly and whether you were properly informed.

Can I claim it if I part-exchanged the car and the dealer cleared the finance?

Potentially, yes. Part exchange is just a method of closing the agreement. It doesn’t automatically prove the original finance was transparent and fair.

I don’t have my finance paperwork anymore — can I still start?

Yes. Start with what you remember (lender name, dealership, rough dates). You can often request agreement details from the lender, and your credit file may help confirm the account history.

Will this affect my credit score?

Making a complaint doesn’t usually affect your credit score by itself. Claim First also states that making a claim through them does not affect your credit score or financial standing.

How much could I get back?

It depends on your agreement and what went wrong. Claim First notes many people may be owed £1,500–£5,000, but every case is different.

Is there a deadline to complain?

There can be. In general, the Ombudsman time limits are often based on “6 years” or “3 years from awareness,” and the FCA has set additional time allowances for certain motor finance complaints while it finalises next steps.

Ready to see if you can still claim?

If you’ve already settled your car finance, don’t assume that’s the end of it. If you were misled, key costs weren’t properly explained, or you weren’t treated fairly, you could still be owed money back.

Start with a quick check through Mis-Sold Finance Claims or message the team through Contact Us and get clear next steps.