The Financial Conduct Authority banned discretionary commissions in 2021. You may qualify for a refund of these commissions if you entered a finance agreement before 28 January 2021.
To start, enter your vehicle registration details
If ANY of the following criteria apply to you, there is a possibility that you were mis-sold your finance agreement and are eligible for a refund.
Undisclosed commissions arise when car dealers or brokers receive payments from finance companies for arranging finance deals on contracts such as PCP, hire purchase and other types of vehicle finance, but these payments are not disclosed to the consumer. These commissions may not only be undisclosed but also undisclosed at an excessive rate. Often, this happens when dealers increase the interest rate on the finance deal to increase their commission, without the customer being aware that they could have received a better deal if the commission had been made transparent.
In such cases, consumers are potentially paying more for the finance than they should be, with no clear indication that they were charged more due to the dealer’s hidden incentives. For example, if a finance company offers a dealer a commission based on the interest rate or terms of the loan, the dealer might raise the monthly repayment or extend the loan term, thereby benefiting from a larger commission. The consumer, meanwhile, may not realise that a better deal was available or that they were subject to a higher cost due to the commission structure.
Now, it is possible to claim back the value of these undisclosed commissions.
A1: Car finance is a method of buying a car or other motor vehicle by way of a loan agreement and is a popular car financing option in the UK where you pay monthly instalments for a fixed term.
A2: Car finance claims refer to legal claims made by consumers who believe they were mis-sold a car finance agreement. The main reason to claim is for any undisclosed commissions the dealer may not have made you aware of when you purchased your vehicle through a finance agreement. If you took out car finance between 2007 and 2021, you may be eligible to claim back any undisclosed commissions from your finance arrangement.
A3: If you have taken out a car finance agreement and believe you were mis-sold the contract, you may be eligible to make a claim. Criteria to claim includes if you were not properly made aware about any commissions the dealer was making, the interest rates, or if you were encouraged to sign the agreement without understanding all terms.
A4: You may have a valid claim if:
A5: To make a claim, you’ll need to provide documents related to your finance agreement, such as:
A6 The time to resolve a car claim can vary depending on the complexity of the case and the responsiveness of the finance provider. Generally, it may take between 12-18 months to resolve, but we’ll keep you updated throughout the process.
A7: Yes, if you were mis-sold a car finance agreement, you may be entitled to compensation. This could include a refund of undisclosed commissions and accrued interest.
A8: Starting a claim is simple. You can use our simple online check to confirm if you could be eligible and proceed to instruct us to carry out your claim on a no-win-no-fee basis. Feel free to contact our expert team to discuss your case, and we’ll guide you through the entire process.
A9: We offer a no win, no fee service, meaning if we don’t win your claim, you won’t pay a penny. If your claim is successful, we will charge a fee, but this will be clearly outlined before you decide to proceed and will be between 15% - 35%.
A10: Yes, even if you've already completed your finance agreement, you may still be entitled to make a claim. If you were mis-sold the agreement, our simple online check can assess whether you’re entitled to a refund or compensation based on your individual case.
A11: No, making a claim will not affect your ownership of the car, and it will not force you to return it. If your claim is successful it could result in compensation, but you will still retain your vehicle.
If you think you may have been mis-sold a car finance agreement, don’t wait
use our simple online check to confirm if you could be eligible to claim and take the first step toward recovering what you may be owed.
We are a registered law firm that processes consumer claims. Please note that it is not a requirement to use legal representation and you can submit a complaint directly with the finance lender which can be progressed to the Financial Ombudsman Service if you are not happy with the outcome.
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