How Uk Expats In Spain Can Claim £700 From The Car Finance Scandal

If you ever bought a car connected finance while surviving successful nan UK – moreover if you’ve since moved to sunny Spain – there’s large news you should know. Millions of drivers could soon get compensation averaging £700 each, aft Britain’s financial regulator confirmed specifications of a awesome car finance mis-selling scheme.

And yes, UK expats are included – arsenic agelong arsenic your car indebtedness was arranged successful nan UK.

So, what’s happened, who’s affected, and what should you do now? Here’s your no-nonsense guideline to nan car finance ungraded everyone’s talking about.

What’s nan car finance ungraded each about?

The Financial Conduct Authority (FCA) – nan UK’s financial watchdog – has announced plans for 1 of nan biggest redress schemes since nan PPI payouts.

Between April 2007 and November 2024, millions of car finance deals were sold successful ways nan FCA says were unfair aliases undisclosed. Around 14 cardinal group are expected to suffice for compensation.

According to nan FCA, nan problem centres connected really dealers and lenders handled commissions. In short, galore customers were unknowingly charged higher liking rates truthful that dealerships could gain a bigger bonus.

If that sounds sneaky – it was.

And while astir of these loans were taken retired years ago, nan regulator says customers will still beryllium eligible for compensation erstwhile nan charismatic strategy begins, apt successful early 2026.

Who is covered?

If you bought a car utilizing Hire Purchase (HP) aliases Personal Contract Purchase (PCP) successful nan UK betwixt 2007 and 2024, you’re astir apt successful nan frame.

Even if you now unrecorded successful Spain, you stay eligible – what matters is wherever nan statement was signed, not wherever you unrecorded today.

How overmuch will I get back?

The FCA’s exemplary will usage a elemental calculation: astir 17% of nan full liking you paid connected nan finance deal. So if you paid £1,000 successful interest, you mightiness get backmost astir £170.

In uncommon cases – wherever nan committee was highly precocious – immoderate group could get each their liking refunded. But that’s only expected to use to astir 13,000 customers.

It whitethorn not sound huge, but for millions of drivers, it’s money they ne'er knew they were owed – and dissimilar galore past schemes, nan FCA wants this 1 to beryllium accelerated and automatic.

How do I complain?

If you haven’t complained, you still tin – and successful fact, you astir apt should.

The FCA says car finance firms will effort to place affected customers and interaction them wrong six months of nan strategy starting. But if your aged finance records are incomplete, you could beryllium missed.

To make judge you’re included, taxable a title now and that way, your lawsuit will beryllium connected record erstwhile nan redress strategy begins.

Don’t make nan title to nan agent aliases car dealer.

Do make your title to nan lender that provided nan car insurance.

Money Saving Expert’s Martin Lewis has a free useful ready-to-use template.

What if I’ve already complained?

Good news.

If you’ve already complained to your car finance provider, your lawsuit will automatically rotation into nan caller redress strategy erstwhile it begins.

The lender must interaction you wrong 3 months of nan scheme’s motorboat to corroborate whether you qualify.

You tin opt out, but that’s only worthy doing if you scheme to return independent ineligible action to pursuit a bigger payout. For astir people, sticking pinch nan charismatic FCA process is safer and simpler.

What to watch retired for

Beware of nan increasing number of claims guidance firms advertizing car finance refunds.

The FCA has warned that while immoderate are legitimate, galore will complaint ample fees – often up to 30% of immoderate payout – moreover though nan upcoming strategy will beryllium free and automatic.

Unless your lawsuit is unusually analyzable aliases you’ve already started ineligible action, don’t motion up pinch a claims firm. You’ll apt suffer money unnecessarily.

What if your aged car finance records are missing? This will beryllium a large rumor for older agreements arsenic immoderate lenders whitethorn nary longer clasp records from nan early 2010s aliases before. In those cases, nan FCA says nan load shifts – you’ll request to supply impervious you had nan loan, specified as:

-Old slope statements showing payments to nan finance company

-An aged in installments study listing nan agreement

-Your conveyance acquisition paperwork

What this intends for UK expats successful Spain

-You’re included. If your car finance statement was made successful nan UK, your existent residency doesn’t impact your correct to claim.

-No request to return to nan UK. All connection will beryllium handled online aliases by station pinch your lender.

-Keep your UK slope relationship active. Payouts will apt beryllium made successful pounds sterling, truthful guarantee you tin person them.

-Check Spanish taxation rules. Compensation payments mightiness count arsenic taxable income nether Spanish law. Speak to a gestor aliases accountant earlier transferring ample sums.

When will payments start?

The FCA’s consultation runs until November 2025, pinch nan strategy expected to statesman successful early 2026.

Once live, firms will person respective months to place eligible customers and commencement payouts.  The full costs to nan manufacture could scope £13 billion.

Time to act

This is nan biggest UK user redress since nan PPI ungraded – and galore expats could beryllium sitting connected forgotten cash.

If you erstwhile financed a car successful nan UK, moreover a decade ago, now is nan clip to cheque your paperwork and lodge a complaint.

When nan FCA’s strategy launches, nan money should travel automatically – but only if nan strategy knows wherever to find you.

So, whether you’re sipping java successful Palma aliases driving down nan Costa del Sol, it’s worthy 10 minutes of your clip to spot if that aged car indebtedness mightiness soon move into a £700 windfall

Don’t support it to yourself either – stock this article pinch your friends and family truthful they tin cheque if they’re owed money too. Millions could beryllium successful statement for payouts, and nary 1 should miss out.