Your ticket to a car finance refund
If you purchased a car, van, or motorbike on PCP or Hire Purchase between 2007 and 2024, you could be due thousands back in compensation.
“If you paid for a vehicle with car finance prior to October 25, 2024, you could be entitled to compensation.”
UK car finance: ‘millions of drivers could get payout’ as watchdog investigates
The Financial Conduct Authority (FCA) says that some customers 'may have been charged too much' on car finance loans before October 2024.
The FCA is taking action
The Financial Conduct Authority (FCA), the UK’s financial regulator, has been actively investigating potential mis-selling practices within the car finance sector. The probe is centred on suspicions that brokers and lenders may have failed to disclose key information to consumers, particularly concerning hidden and unfair commission arrangements.
The FCA is primarily concerned about whether consumers are being adequately informed of the total costs tied to car finance deals. During its review, the FCA identified multiple issues, including a lack of transparency around commission structures, which may have led to customers being overcharged.
Several high-profile organisations have been impacted, with banks, automotive finance companies, and independent lenders adjusting their practices in response. Major names such as Close Brothers, MotoNovo Finance, Santander Consumer Finance, and BMW Financial Services are among those who have been closely monitored during the investigation.
Be ready to claim your compensation when the FCA makes its ruling.
Check NowSales commissions banned in January 2021
In January 2021, the FCA banned unfair commission arrangements in the car finance industry after discovering that lenders were incentivising brokers and car dealers to apply higher interest rates to maximise their earnings.
Full industry investigation started in January 2024
The full-scale investigation into potential mis-selling within the car finance industry, prompted by growing concerns that some lenders and brokers were engaging in unfair practices, began in January 2024.
Court ruling expands consumer protection in October 2024
In October 2024, the UK Court of Appeal ruled that it is unlawful for car dealers to receive commissions from lenders without clearly informing consumers. This decision applies to all commission-based payments.
Review findings expected within six weeks of the Supreme Court ruling
The FCA has postponed its review findings. It will await the Supreme Court’s ruling, with the hearing set for 1–3 April 2025. The final decision is expected two to four weeks after the hearing. The FCA will confirm its next steps within six weeks of the decision.
Have you been a victim of mis-sold car finance?
Lenders and brokers have a duty to be transparent, ensuring that every aspect of your finance agreement is clearly explained. However, in many cases, consumers have been misled about multiple critical details. You may have been mis-sold if you weren’t made aware of hidden fees or inflated interest rates, if you were pushed into deals with higher monthly payments, or if the terms and conditions were complex or purposefully vague, making it difficult for you to fully understand what you were agreeing to.
Our free online check can tell you in 60 seconds if you're eligible to claim with us!
Check NowHigh & Unfair Interest Rates
Finance agreements typically come with interest fees that the borrower must pay. However, many consumers were offered deals with inflated interest rates because of discretionary commission arrangements.
Motorists may have thought this was a fixed rate, but there were cheaper deals available that the dealer should have told them about. The average consumer may have paid £1,100 more interest than necessary.
Undisclosed Commission Fees
A claim might be possible if the dealers didn’t tell you a commission agreement was in place or if they did but omitted how much money they would receive. This practice, banned in 2021, allowed brokers or dealers to offer customers an inflated interest rate, which they would take as part of their commission.
Lack of Affordability Checks
Under the FCA’s guidelines, the dealer or broker must check that you can afford the loan before you sign the agreement. An affordability check looks at your income and credit history to ensure you can cover the monthly payments. You may be able to claim if the company that arranged the finance failed to conduct an adequate affordability check.
Millions of people who took out vehicle finance before October 2024 could be due a refund. Check if you’re eligible.
You could be one of them if any of the below apply:
- You bought a car on finance before October 2024
- You weren't told about sales commissions
It's that simple! Over 70 lenders have been affected by the scandal. Check for free to see if you're due a refund from your lender.
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Check for free to see if you're eligible to claim with us.
Frequently Asked Questions
What are my rights?
Your rights are safeguarded by consumer protection laws. If you were misled about the financial terms or conditions of your car finance agreement, you might have a valid basis for a claim. Legally, you are entitled to complete and accurate information about your contract's terms.
Can I claim for multiple cars?
Absolutely, you can submit claims for more than one car if you were misled in multiple PCP or HP agreements. However, keep in mind that the rules and processes may differ for each vehicle, depending on the details of the agreements and any legal precedents concerning those misrepresentations.
Do I have to pay anything?
We handle your case on a 'No Win, No Fee' Read more basis. We will only be compensated if the claim is successful. This aligns our interests with yours, demonstrating our confidence in our ability to secure a positive result. In the event of a favourable result, our billing structure entails a nominal deduction from your compensation.
How much will I get?
The compensation you could receive depends on several factors. We cannot give you an exact estimation at this time. An example of an early successful claim involved a borrower who paid an interest rate of 5.5%. It was later revealed that the bank was offering similar loans at 2.49%. As a result, the bank had to refund the borrower £1,147 for the excess interest charged.
When will I be paid?
The Financial Conduct Authority (FCA) is currently conducting a thorough investigation into PCP and HP contracts. This involves placing a pause on the 8-week deadline that finance providers have to respond to complaints that involved discretionary commission arrangements. Whilst consumers can still complain to their finance provider, the provider will not have to respond to their complaint until December 2025, at the earliest. Following this, any eligible claims will likely be processed within three to six months.
Can I claim on my own?
For PCP mis-selling claims you do not need to use a law firm or a claims management company to make your complaint to your provider, you may be able to do this yourself for free. There are however many benefits of choosing us to handle your claim. We will manage all communication with your lender, working closely with them to ensure that you receive a fair level of compensation. If your lender encounters any difficulties in locating your details, we will assist them to enable your claim to proceed.
Check your car online
Did you know you can also claim for vans, camper vans and motorbikes?
The online registration check is free but not a conclusive answer to the full eligibility to claim for compensation.
