No, standard PPI claims on car finance closed in 2019; only limited Plevin-style routes or court action may remain.
Many drivers still wonder if payment protection insurance tied to an old car loan can be reclaimed. The short answer for most people is no, because the regulator’s window for new complaints closed in 2019. That said, a narrow set of routes can still apply in very specific scenarios, and there’s a separate, current wave of complaints about commission on motor loans that isn’t the same as PPI. This guide spells out the difference, shows where a Plevin-type claim might still stand, and gives a clear plan so you don’t waste time or miss a live remedy.
What PPI On Motor Loans Was And Why Claims Boomed
PPI was an add-on sold with credit that promised to cover repayments if you lost your job or fell ill. It was bolted onto many car finance agreements over the 1990s and 2000s. Mis-selling took many forms: people were told cover was required to get the loan, didn’t realise it was optional, or weren’t told about cost and exclusions. That triggered a tidal wave of refunds across banking and credit products, including hire purchase and personal loans used to buy cars.
To draw a line under years of complaints, the regulator set a hard stop date. Since then, the normal route—complaining to the firm that sold the insurance and then escalating if needed—hasn’t been open for fresh cases. A limited commission-disclosure argument, known as Plevin, can still be raised through legal channels in some situations. More on that later.
Snapshot: How PPI Sat Inside Car Deals
Here’s a quick refresher on where PPI could appear inside motor finance paperwork and what the hallmarks looked like.
| Where PPI Appeared | Typical Clues In Documents | What Went Wrong |
|---|---|---|
| Separate policy added to a personal loan used to buy a car | Policy schedule, monthly premium, “optional” box not ticked or left unclear | Cost not explained, exclusions hidden, pressure sale |
| Single-premium cover inside the credit amount | Large one-off premium financed over the term, often bundled into “amount of credit” | High cost compounded by interest, poor disclosure |
| Dealership-arranged finance with add-on insurance | Dealer documents show ancillary insurance or protection plan line items | Customers told cover was needed to secure approval |
Claiming PPI On Motor Finance — What Still Applies
The mainstream route for fresh PPI complaints ended on 29 August 2019. That deadline covered new complaints to firms about mis-sold cover or about undisclosed commission inside the premium. The regulator ran a national campaign ahead of that date and firms then processed the surge of cases that came in before the cut-off.
There are two narrow avenues people ask about today: late complaints with strong reasons, and the Plevin commission argument via the courts. Late complaints can work only where you already complained in time or where a firm chooses to look again at its own discretion. For most people, the door is shut. The Plevin route is different: it’s a legal claim that hinges on high, undisclosed commission inside the policy cost. That can still be argued in limited circumstances, subject to time limits and facts.
What “Plevin” Means In Plain Terms
Plevin refers to a Supreme Court case about undisclosed commission inside a PPI premium. If a large slice of what you paid for cover went as commission and the lender or broker didn’t flag it, a court can decide the relationship was unfair. Where that line sits and how to measure it can vary, and limitation rules apply. It’s not a one-size claim, and results turn on documents and dates. If your only question is “can I send a brand-new complaint to a lender now?”, the answer is still no—that route ended in 2019.
Don’t Mix PPI With Today’s Car Finance Commission Issue
There’s a separate, current problem in the motor market about discretionary commission arrangements between dealers and lenders. Under those setups, dealers could adjust the interest rate and earn more commission, which led to borrowers paying more than they should. This isn’t PPI, and the live action here revolves around interest charges, not insurance premiums. The regulator has paused some deadlines while it designs a broad redress scheme and has signalled that firms will have longer to send final responses on some complaints while the scheme is built.
If your loan was arranged through a dealer and you suspect the rate was tweaked to pay higher commission, that sits in the “motor finance commission” camp, not the PPI camp. The remedy path, evidence, and timelines are different.
How To Tell Which Route Fits Your Case
Use this quick cross-check to avoid chasing the wrong process:
- If your gripe is about an insurance premium added to your credit and what it covered, that’s a PPI story. New lender complaints are closed off, with only niche legal angles left.
- If your gripe is about the interest rate on the car loan and a dealer-lender commission that ramped it up, that’s a motor finance commission story with live movement from the regulator.
Evidence To Gather Before You Spend Time Or Money
Whether you’re looking at a Plevin-type argument or a commission complaint, documents are king. Hunt down the original credit agreement, any insurance policy schedule, and a statement of account. If you can’t find them, ask the lender for copies. You can also pull your credit files to see who reported the loan and when. Keep a simple timeline: finance start date, product type (hire purchase, PCP, personal loan), dealer involvement, any insurance add-ons, and when you first complained.
When A Plevin-Type Route Might Still Be Worth Exploring
You’d look at this only if you had PPI and think a large slice of what you paid was commission that wasn’t made clear. You’d also weigh time limits. Courts look at whether you brought a claim in time from when you could reasonably have spotted the issue. That is a technical area, so many people take advice before committing.
Practical Next Steps If You’re Unsure
Start with clarity on which dispute you have:
- Check your paperwork. Scan for an insurance schedule or premium inside the credit amount. If you see PPI, you’re in the historic bucket; only Plevin-style legal action might still be on the table.
- Check the interest questions. If a dealer arranged your loan and you suspect the rate was padded to pay a higher commission, follow the motor finance commission route.
- Log a complaint where it fits. For commission-rate disputes, send a clear letter to the lender setting out the facts. Keep copies. If you’ve already complained, track the response timings published by the regulator.
- Escalate if needed. If you disagree with a response on a live commission case, you can take it to the adjudicator named on your letter within the set timeframe.
Where Trusted Guidance Lives
For the historic PPI cut-off and what it meant, see the regulator’s page on PPI complaints. For the current work on motor finance complaint handling and extended response dates, the page on car finance complaints is the clearest place to start. Both links go to detailed guidance and are kept up to date.
Common Myths About Reclaiming Insurance On Car Loans
Plenty of ads still hint at windfalls on old policies. Here’s what not to fall for:
- “You can still send a brand-new complaint about old insurance to a lender.” That ship sailed in 2019. Only narrow legal routes linked to commission on the policy price may survive.
- “The current redress work on motor loans is the same as PPI.” It isn’t. Today’s wave addresses interest set through dealer commission practices, not insurance premiums.
- “You must pay to see if you’re eligible.” You don’t need to pay a middleman to read public guidance, check documents, or send a complaint letter.
What Outcome To Expect In Each Situation
Results vary with paperwork and dates. This table maps the likely routes people ask about now.
| Your Situation | Likely Route | What A Positive Result Looks Like |
|---|---|---|
| You had PPI on a car loan and never complained before 29/08/2019 | Limited Plevin-style legal route only (case-specific) | Partial refund of premium/interest tied to undisclosed commission if court agrees |
| You complained in time and are waiting on a response | Historic case; follow the firm’s process or past adjudicator instructions | Refund per old rules if upheld; otherwise no further route unless legal advice says otherwise |
| You suspect dealer commission lifted your interest rate | Live motor finance commission complaint | Refund of overpaid interest and charges, plus interest on top, once your case is assessed |
How Timelines And Deadlines Affect Your Options
The historic cut-off for new insurance complaints was 29 August 2019. That date matters because lenders can close the door to fresh PPI cases raised after it. For the live commission issue, the regulator has paused some deadlines and extended final-response dates while it shapes a broad redress plan. That means you might wait longer for a final letter from a lender on a commission dispute, but you aren’t barred from raising that complaint.
What If You Used A Personal Loan To Buy The Car?
Plenty of drivers used an unsecured personal loan to buy a vehicle. If PPI sat on that personal loan and you never raised a case in time, you’re still in the historic bucket with the same constraints. If no insurance was attached but you think the rate was fair at the time, today’s commission work won’t apply because it targets dealer-arranged motor credit where the broker set the rate, not a direct-to-bank personal loan.
Fees, Middlemen, And Red Flags
Many firms offer to run checks and send letters for you. That can be convenient, but weigh the cost and read contracts. You can send a complaint yourself for free with a clear, two-page letter and copies of your documents. If a firm promises a guaranteed payout, step back. No one can guarantee an outcome on case-by-case disputes. If you do appoint a representative, make sure fees are capped and only paid on actual cash recovered.
Step-By-Step Letter Template For A Commission-Rate Complaint
Use this structure when writing to a lender about dealer-set interest. Keep it factual and short.
- Who you are. Name, address, account or agreement number, vehicle, and date of agreement.
- What happened. Dealer arranged the credit; you later learned a commission model allowed the rate to be adjusted.
- Why it matters. You believe the rate was set higher than it should have been due to that model and that you paid more interest.
- What you want. A refund of the extra interest and charges, plus interest added for being out of pocket.
- What you’ve enclosed. Agreement copy, statements, and any dealer paperwork you hold.
When To Seek Legal Advice
Two moments tend to justify getting a view from a legal professional: a potential Plevin case where undisclosed commission inside an insurance premium is central, and a complex commission dispute that has unusual facts or tight limitation questions. Take copies of all paperwork to the first chat so you get a grounded steer on prospects and cost.
Bottom Line For Drivers With Old Insurance
If your car finance story is about insurance, the mainstream reclaim window shut years ago. A narrow Plevin-type path can still exist, but it’s technical and turns on evidence. If your story is about the interest rate and a dealer commission model, that is a live route with active work from the regulator. Split your case correctly, gather documents, use free guidance, and send clear letters. That way you spend effort where a remedy still exists.