Education

Common Myths About Car Finance Refunds Debunked

Think you can't claim because you paid off the car? Or because you traded it in? We debunk the most common myths holding people back.

The Car Finance Refund Team
November 27, 2025
2 min read

Misinformation is spreading fast. Let's clear up the most common myths preventing people from claiming what they are owed.

Myth 1: "I've paid off the car, so I can't claim."

False. It doesn't matter if the agreement is settled, active, or if you sold the car five years ago. If the agreement existed and had a DCA, you can claim.

Myth 2: "It will affect my credit score."

False. Making a complaint is not a default. It does not appear on your credit file. It is a dispute about unfair costs, not your ability to pay.

Myth 3: "I need the original paperwork."

False. While helpful, it's not mandatory. Lenders are required to keep records for a certain period (usually 6 years after the account closes). A Subject Access Request (SAR) can force them to provide the data they hold on you.

Myth 4: "The dealer will get into trouble."

Mostly False. Your claim is against the lender (the bank), not the local dealership. The lender was the regulated entity responsible for ensuring fair outcomes.

Written By

The Car Finance Refund Team

A collective of consumer rights advocates, legal researchers, and software engineers dedicated to helping UK drivers reclaim unfair car finance commissions.

Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice.

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