Consumer Rights for Car Finance Mis-Selling: How UK Drivers Can Claim Thousands in Compensation in 2025

Consumer Rights for Car Finance Mis-Selling: How UK Drivers Can Claim Thousands in Compensation in 2025

Your Lawyers is A UK leading firms fighting for consumer rights for car finance mis-selling. We have already helped thousands recover the money they are owed in wider consumer cases, and we are ready to do the same for you.

The UK car finance mis-selling scandal is now reportedly larger than PPI and continues to grow. Between 2007 and 2021, an estimated 40% of all car finance agreements may have contained secret commissions that were never disclosed to the customer. Many drivers unknowingly paid hundreds or thousands of pounds extra in interest simply because dealers increased the interest rate to boost their own commission.

The Financial Conduct Authority (FCA) has confirmed this practice was widespread and has banned it since January 2021.

The Two Core Types of Consumer Rights for Car Finance Mis-Selling

There are two main legal grounds that could make the vast majority of claims successful:

1. Undisclosed Discretionary Commission Arrangements (DCA) This is the biggest element of the scandal. Before 28 January 2021, lenders allowed car dealerships and brokers to secretly increase your interest rate. The higher the rate, the more commission the dealer may have earned. Crucially, you were never told this was happening or that a lower rate was available. The FCA has already ruled that failing to disclose this commission was unfair and broke consumer protection rules.
2. Unclear, Hidden or Unaffordable Finance Terms Some customers were not properly informed about the full cost of the agreement, balloon payments, mileage limits, or excess wear-and-tear charges on PCP deals. In other cases, finance was arranged even though it was clearly unaffordable based on the information provided. Both situations breach the Consumer Credit Act and FCA rules on responsible lending.

Both issues could give you strong consumer rights for car finance mis-selling and entitle you to full redress: the extra interest you paid because of the secret commission, plus 8% compensatory interest dating back to the date of each payment.

Who Qualifies and How Much Is Typical Compensation?

You may have a claim if you answer “yes” to these questions:

• Did you finance a car, van or motorbike on Hire Purchase (HP) or Personal Contract Purchase (PCP) between April 2007 and 28 January 2021?
• Was the finance arranged by the dealership or a broker (most were)?
• Have you not already received a redress offer from the lender?

If yes, you ,au be eligible – even if:

• You have sold or returned the vehicle
• The agreement is settled or was voluntarily terminated
• The car was bought for business use (in many cases)

Take Control of Your Consumer Rights for Car Finance Mis-Selling Today

Some lenders are already upholding individual complaints. The earlier you register your claim, the sooner you could get a result – and the less risk there may be of future cut-off dates or caps being introduced.

Call our dedicated car finance team free on 0800 634 7575 or complete our quick claim checker.

Do not leave thousands of pounds on the table – start your no-obligation claim today and let Your Lawyers fight for the compensation you deserve under your consumer rights for car finance mis-selling.

PCP Car Finance Claim Form

Really need to know if you have a PCP Car Finance claim to make?

Use our claim tool above to find out if you are eligble for thousands of pounds in compensation!

Claim Now