Following the Supreme Court ruling on 1 August 2025, the Financial Conduct Authority (FCA) is now working on a redress scheme for consumers who may have been mis-sold car finance agreements. This means millions of drivers could be entitled to claim compensation, in some cases, thousands of pounds.
But while this is welcome news for consumers, it has also created the perfect opportunity for scammers. Fraudsters are already targeting people who might be eligible, using phone calls, texts, emails, and fake websites to trick them into handing over personal details or paying upfront fees.
And it’s not just scams you need to watch out for. Some Claims Management Companies (CMC’s) use high-pressure tactics and unclear contracts that could leave you worse off than if you’d claimed directly, or with a regulated no win no fee law firm.
Scammers Looking To Cash In
The Supreme Court’s decision has brought widespread attention to the car finance mis-selling scandal. If you bought a car on a Personal Contract Purchase (PCP) or Hire Purchase agreement, and the dealer or broker earned a hidden commission without telling you, you could have a valid claim.
Scammers are exploiting this, some even posing as car finance lenders, and getting you to hand over money or sensitive information with the promise of guaranteed or quick compensation payments.
Limits (and Complexities) To Claiming Yourself
When the FCA’s redress scheme goes live, you’ll be able to apply directly for free. For some people, that will be the right choice.
However, we predict that the process may be complex. You might need to gather evidence, respond to challenges from lenders, and meet strict deadlines. And in cases involving hidden commission or contested finance terms, the FCA’s standard calculation may not deliver the full amount you’re legally entitled to.
That’s where having expert legal representation can make all the difference, especially on a no win no fee basis and by a regulated legal firm such as Bott and Co.
Why A Regulated No Win No Fee Solicitor Is A Safer Choice
At Bott and Co, we’ve spent more than 20 years helping people recover money they’re owed, from flight delay compensation to landmark court wins in car finance mis-selling.
Here’s why a law firm like Bott and Co offers extra protection:
- Regulated and accountable – We’re authorised by the Solicitors Regulation Authority (SRA) and bound by strict professional standards.
- No win, no fee security – You don’t pay us a penny unless your case succeeds. Our fees are agreed in advance and capped.
- Hassle free legal support – We can handle your claim from start to finish, including taking it to court if necessary.
- Proven results – We’ve recovered over £120 million for clients and influenced industry-wide changes.
Many CMC’s can only submit your claim and if it’s disputed, they would need to hand it over for legal intervention or you could incur costly fees for taking it to court. We have qualified solicitors who will fight your case all the way, on a no win no fee basis.
Bott and Co are advising people to remain vigilant and protect yourself and your money. Genuine law firms won’t cold call or ask for upfront fees.
David Bott, Senior Partner at Bott and Co, told The Times Newspaper: “People should be aware of the options they have before signing to do anything. People should be aware that they can do it themselves… But on the flip side of that coin, up until the ruling, it has taken law firms to take on this ‘simple matter’ all the way to the Supreme Court.”
What Happens Now?
The FCA’s redress scheme will open the door for many people to get back money they’re owed, but it could take time and with scammers and unregulated claims companies circling, it’s never been more important to protect yourself.
You can apply for compensation yourself, but if you want the reassurance of regulation, the experience of specialist solicitors, and the best chance of securing the maximum payout, a no win no fee law firm like Bott and Co is the safest choice.