Car finance refund process: In recent years, thousands of UK drivers have discovered they may be entitled to compensation due to undisclosed commissions and unclear finance terms in their car finance agreements.
If you have financed a vehicle through PCP or HP deals between 2007 and 2021, you could be affected. Your Lawyers specialises in helping consumers navigate these claims efficiently
This article breaks down the key aspects to empower you with the knowledge needed to pursue what you deserve.
Undisclosed commissions can refer to hidden payments that car dealers may have received from lenders for arranging finance deals, often without informing the customer. This practice, known as discretionary commission arrangements (DCA), may have allowed some dealers to inflate interest rates to boost their earnings, leading to overpayments by borrowers. Additionally, unclear finance terms might involve ambiguous clauses about fees, early termination penalties, or the overall cost of borrowing, making it difficult for consumers to understand the true expense.
The Financial Conduct Authority (FCA) launched an investigation in 2021, highlighting how these issues affected millions. As of 2025, with the FCA’s ban on DCA fully in effect since 2021, people can be better protected. In terms of claims, for instance, if your agreement lacked transparency, you might have paid hundreds or even thousands extra in interest. Recognising these red flags is the first step in the car finance refund process, ensuring you are not out of pocket due to mis-selling.
The car finance refund process can seem daunting, but breaking it down can make it manageable. Start by gathering your finance documents, including the agreement, payment history, and any correspondence with the lender or dealer. Next, check eligibility: Were commissions undisclosed? Was the interest rate higher than necessary?
Once ready, submit a formal claim with us and we can contact the finance provider, citing the mis-selling. They usually have a set period of time to respond. If unsatisfied, we could escalate matters to the Financial Ombudsman Service (FOS) for adjudication. Many opt for our no-win, no-fee legal support to handle paperwork and negotiations. Your Lawyers streamlines the car finance refund process, from initial assessment to securing payouts,
Time is critical as claims may have deadlines tied to when you became aware of the issue, typically a set number of years from discovery. Delaying could mean missing out, especially with the FCA’s ongoing review potentially leading to mass compensation schemes. Successful claims may not only recover overpaid amounts but also improve credit scores by adjusting unfair terms.
Beyond financial recovery, pursuing this holds lenders accountable, promoting fairer practices industry-wide. With rising awareness, more drivers are joining group actions for stronger leverage. If affected, acting promptly maximises your chances in the car finance refund process.
Ready to check if you are eligible? Claim Your Lawyers today for a free, no-obligation assessment and get started. Our team can guide you every step of the way—visit our website or call now to start your claim and reclaim what is yours!
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