Mis sold car finance and your credit file: what happens if you complain?

If you’re thinking about complaining about mis-sold car finance, one of the first worries is usually: “Will this mess up my credit score?” It’s a fair question — your car finance agreement is tied to your credit file, your monthly payments, and sometimes your ability to get another loan or mortgage.

The good news is that making a complaint itself doesn’t damage your credit file. Claim First even says this directly in their FAQs: making a legal claim through them does not affect your credit score or financial standing.

But (and this is important) what you do while the complaint is ongoing can affect your credit file especially if you stop paying without a plan.

Let’s walk through it in plain English.

First: what “mis-sold car finance” usually means

Most mis-selling complaints in UK car finance focus on things like:

• You weren’t clearly told the total cost, interest rate, or key terms

• You weren’t told about commission (or the impact it could have had on the rate you were offered)

• The deal wasn’t properly checked for affordability

• You were pushed into a finance product that wasn’t suitable (often PCP or HP)

Claim First describes this kind of mis-selling clearly — where lenders or dealers failed to properly explain interest rates, total costs, commissions or affordability.

And this is a huge topic in the UK right now. The FCA has estimated that 14.2m agreements (44% of agreements made since 2007) could be considered unfair under its proposed approach to a motor finance compensation scheme.

Does making a complaint show up on your credit report?

No. Your credit report doesn’t have a “complaints” section where it logs that you’ve complained to a lender, the Financial Ombudsman, or used a claims specialist.

Your credit file tracks things like:

• Whether you pay on time

• Your balance and outstanding borrowing

• Defaults, arrears, and missed payments

• Credit searches and new applications

So the act of complaining isn’t the issue. The behaviour around your payments is what matters.

The big mistake: stopping payments without advice

This is where people get caught out.

If you stop paying your car finance while you’re complaining, the lender can still:

• mark payments as missed

• add arrears markers

• issue a default (in more serious cases)

Those markers can stay on your credit file for years and make borrowing more expensive.

So if you’re going to complain, the safest default position is:

Keep paying as normal unless you’ve had proper advice and you understand the risks.

If the finance is genuinely unaffordable, that’s a different situation — but you still want a plan before you miss payments.

What can change on your credit file if your complaint succeeds?

If your complaint is upheld (or you reach a settlement), your credit file might change — usually in a helpful way.

Here are the most common outcomes.

1) Corrections to negative markers

If your agreement is found to have been unaffordable or unfairly sold, the lender may agree to:

• remove certain missed payment markers

• correct arrears entries

• update how the account is reported

This is more likely when the complaint involves affordability checks (for example, if the repayments were never realistically manageable).

2) Balance adjustments

If you’re refunded interest or charges, the lender might:

• reduce the outstanding balance

• update the account history to reflect the correction

3) Settlement and account closure

If the agreement is already finished, you may see no change at all on your credit file — but you may still receive compensation.

Claim First notes that many successful claims can fall in the region of £1,500–£5,000, depending on the agreement and what went wrong.

What if your complaint is still being processed for a long time?

Motor finance complaints have been under unusual timelines in recent years due to regulatory activity.

The FCA has made public updates around its work on motor finance commission issues, including complaint-handling pauses and timing changes.

What this means for you in real life: you might be waiting longer than you expect for final outcomes, especially if the complaint relates to commission structures.

That’s another reason your credit file protection matters — a long-running complaint is not the time you want missed payments piling up.

Practical steps to protect your credit file while you complain

Here’s what you can do immediately:

1. Check your credit report
   Look for any late payment markers, defaults, or incorrect balances.

2. Keep records
   Save your agreement, any emails, dealer paperwork, screenshots of quotes, and notes of what you were told.

3. Avoid taking out new finance “just to fix it”
   More applications mean more hard searches.

4. Don’t ignore lender letters
   Even if you’re complaining, respond where needed.

5. Get help early
   If you feel out of your depth, it’s usually easier (and less stressful) to have someone manage the process and keep it organised.

If you want to understand whether you’ve got a case, start at Mis Sold PCP Car Finance and work from there.

FAQs

Will complaining about mis-sold car finance hurt my credit score?

No — the complaint itself doesn’t harm your score. What can hurt your score is missing payments while the complaint is ongoing. Claim First also states that making a legal claim does not affect your credit score or financial standing.

Should you keep paying your finances while you complain?

In most cases, yes. If you stop paying without a plan, your lender may report missed payments, which can damage your credit file.

If you win, will your credit file automatically be fixed?

Not always. If the problem involves affordability or unfair reporting, the lender may correct markers or balances. If your agreement ran smoothly and you just received compensation, your credit file might not change.

Can you complain if your agreement has ended?

Yes. Many complaints relate to past agreements — especially PCP/HP deals from 2007 onwards, which is the period often discussed in the wider UK motor finance issue.

How much money could you get back?

It depends on the agreement and what went wrong, but Claim First says most successful claims range between £1,500 and £5,000.

What if you don’t have your finance paperwork?

You can still often move forward. Claim First notes that having the agreement helps, but it’s not always required because information can often be retrieved with your permission.

Ready to check if you’re owed money?

If you think your car finance wasn’t explained properly especially around commission, total cost, or affordability don’t sit on it. The sooner you check, the sooner you can protect your credit file and start moving towards a result.

Go to Mis sold PCP Finance to check your eligibility, or use the Contact page if you want to speak to the team.