Are you owed money for mis-sold car finance?

What are mis-sold car finance claims?

Mis-sold car finance claims arise when discretionary commissions are paid by car finance providers to third-party brokers without the knowledge of the customer.  In some cases, this has led to the customer being charged a higher rate of interest under the car finance agreement.  This lack of transparency could qualify you for compensation.

Am I eligible for a mis-sold car finance claim?

The Financial Conduct Authority (FCA) banned discretionary commissions in 2021.

However, if you used finance to buy a vehicle (for example a car, van, campervan, or motorbike) before 28 January 2021, then you could be entitled to £1000s in compensation.

The FCA has recently launched an investigation into historical car finance commission arrangements, which will potentially impact millions.

It is estimated that over 90% of new vehicles are bought on finance in the UK.  The FCA estimates that up to 95% of those finance deals include some form of commission model, so there is a good chance that you will be eligible to make a claim for compensation.

How do I know If I have been affected

The FCA have advised that you may have been affected if any of the following are true:

  • You used finance to buy a vehicle before 28 January 2021 (this includes hire purchase agreements, such as Personal Contract Purchases).
  • There was a discretionary commission arrangement between your car finance provider and a third-party broker.

As stated above, the FCA is currently investigating this issue and a pause has been put in place which means that car finance providers do not have to respond to new complaints until after 25 September 2024, at the earliest.

However, you can still submit a claim for compensation to your car finance provider in the meantime, and we would strongly urge you to do so to get ahead of the curve.

How can we help?

Claiming compensation can be lengthy, stressful, and time-consuming process.  Remove the hassle and instruct one of our specialist lawyers to pursue a claim on your behalf.  In most cases, we will be able to act for you on a no win no fee basis.

Get in touch using the contact form, below.

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