Can I Claim for Mis-Sold Car Finance on Behalf of a Loved One Who Has Died?

Dealing with finances after someone dies can feel overwhelming. While sorting through paperwork, you may find details of a car finance agreement and start to question whether it was fair.

If you suspect the agreement may have been mis-sold, you may be able to raise a complaint on behalf of the person who has passed. The key issue is whether you have the legal authority to act for their estate.

Can a Car Finance Complaint Be Made After Death?

In many cases, yes.

When someone dies, their financial rights and obligations form part of their estate. If they had a regulated car finance agreement such as a Personal Contract Purchase or Hire Purchase agreement, any potential complaint about how that agreement was arranged belongs to the estate.

This means the complaint is not made in your personal capacity unless you were also a party to the agreement. It is made by the estate through the authorised personal representative.

Who Has the Authority to Complain?

The person who can usually act is:

• The executor named in the will, once probate has been granted
• The administrator of the estate where there is no will and letters of administration have been issued

Until probate or letters of administration are obtained, lenders may limit what they are willing to disclose due to data protection requirements.

If you are unsure whether you have authority, you should check the will or seek independent legal guidance about estate administration.

What Types of Agreements Can Be Reviewed?

Most regulated consumer car finance agreements may be considered. This includes PCP, HP and conditional sale agreements arranged through a dealership or broker.

Complaints commonly relate to issues such as:

• Commission arrangements that were not clearly explained
• Interest rates that may have been influenced by commission structures
• A lack of clarity around key terms, including balloon payments
• Affordability assessments at the time the agreement was taken out

Whether a complaint is valid depends on the specific facts, the information provided at the time of sale and the regulatory framework that applied when the agreement was entered into.

Does the Agreement Date Matter?

Yes. Consumer credit regulation changed in April 2007 when responsibility moved to the Financial Services Authority, now the Financial Conduct Authority.

If the agreement began after April 2007, it is more likely to fall within the jurisdiction of the Financial Ombudsman Service. Agreements entered into before that date may be treated differently. Each case depends on the lender and the agreement timeline.

If you are unsure of the start date, you can request a copy of the agreement from the lender.

How Do You Start the Process?

The process usually follows these steps.

First, confirm your legal authority as executor or administrator. You will normally need a grant of probate or letters of administration before progressing a formal complaint.

Second, identify the finance provider. This may be shown in bank statements, old correspondence, credit files or dealership paperwork.

Third, request details of the agreement if you do not already have them. You can make a written request to the lender for copies of relevant information.

Fourth, submit a complaint directly to the lender explaining why you believe the agreement may have been unfair. You should make clear that the customer has died and that you are acting as the personal representative.

If you are not satisfied with the lender’s final response and the agreement falls within its remit, you may be able to refer the complaint to the Financial Ombudsman Service.

You do not have to use a claims management company to complain. You can do this yourself for free.

What About Time Limits?

Time limits can apply to car finance complaints. This can be due to a number of reasons such as, the time for managing a high volume of complaints and regulatory decisions. The FCA are planning to announce a redress scheme on the 31st May 2026 addressing discretionary commission and mis-sold car finance agreements.

In general, complaints should be made within six years of the agreement, or within three years of the date the customer knew, or could reasonably have known, that there may have been a problem.

Where the customer has died, the timing can be more complex. The lender and, if relevant, the Financial Ombudsman Service will consider the specific circumstances.

If you believe there may be an issue, it is sensible to raise the complaint in writing and keep a record of the date you did so.

What Happens If a Complaint Is Upheld?

If a lender upholds the complaint, any redress would usually be paid into the estate. It would then be distributed according to the terms of the will or the rules of intestacy.

Redress is intended to address any financial loss that arose from the way the agreement was arranged. The exact calculation depends on the facts of the case.

Executors should keep clear records of any sums received and consider whether tax advice is needed in relation to interest payments.

Practical Challenges to Expect

Older agreements can be harder to trace for reasons such as, dealerships closing or rebranding, paperwork moving to digital, and 6 year retention policies as that's the minimum legal requirement for retaining financial records. Especially if they were settled many years ago. Records may be limited and paperwork may be incomplete.

You may need to provide:

• A copy of the death certificate
• Proof of your authority to act
• Details such as previous addresses and approximate agreement dates

If documents are missing, lenders may still be able to locate records using personal details.

Raising a complaint while managing an estate can feel like an additional burden. You may wish to deal with one agreement at a time and keep communication in writing to maintain clarity.

Making an Informed Decision

As executor or administrator, your role is to act in the best interests of the estate. That may include reviewing financial agreements to ensure they were arranged fairly.

Whether you choose to complain yourself or ask a regulated firm to assist is your decision. What matters is that you understand your authority, the relevant time limits and the process involved.

Mis-Sold Expert can help you assess whether a car finance agreement may give rise to a complaint and guide you through the next steps.

You can claim without using a claims management company; you can go to your finance provider and then to FOS, for free. Additionally, the FCA is introducing a free consumer redress scheme.