We can help people claim compensation for hidden commissions on car finance, and we can take cases forward on a No Win, No Fee basis.
Millions of UK motorists who financed cars between 2007 and 2024 may be owed compensation due to widespread issues with undisclosed commissions and unclear finance terms. These practices may have resulted in some consumers paying more than necessary through inflated interest rates and opaque agreements.
Understanding your rights is essential if you suspect you were affected.
Hidden commissions on car finance can occur when lenders pay undisclosed fees or commissions to car dealerships or brokers for arranging loans. In many cases, these were “discretionary commission arrangements” (DCAs), where the commission amount varied based on the interest rate charged to the customer. Higher rates could mean bigger payouts for the dealer, creating a clear conflict of interest that was rarely explained to the buyer.
The Financial Conduct Authority (FCA) prohibited such arrangements in January 2021 after identifying widespread unfair treatment. Court rulings, including significant Court of Appeal decisions and ongoing Supreme Court considerations, have reinforced that failing to disclose these commissions can potentially breach fiduciary duties and amount to mis-selling.
Where commissions were not adequately disclosed, average potential payouts could be estimated in the hundreds or thousands of pounds per claim, depending on the finance amount and overpayment.
Many car finance contracts suffered from unclear terms that compounded the problems caused by undisclosed commissions. Customers may have received insufficient information about the true Annual Percentage Rate (APR), total repayable amount, early settlement fees, or balloon payment obligations in Personal Contract Purchase (PCP) deals. Finance documents sometimes buried critical details in small print or failed to highlight how commissions influenced the offered rate.
This lack of transparency in some cases made it difficult for consumers to compare deals or understand the real cost of borrowing. Such practices could violate FCA rules requiring clear, fair, and not misleading communications.
If your agreement lacked proper explanations of these elements, it could strengthen a potential mis-selling claim alongside issues with undisclosed commissions.
To pursue compensation, start by reviewing your finance agreement for any mention of commissions paid to the dealer. Gather details like the lender, agreement date, vehicle purchased, and total interest paid. We can submit a formal complaint directly to the finance provider or dealership, explaining the lack of disclosure and requesting redress.
If unsuccessful, escalate to court can be a matter for us to pursue, which could then lead to an award of compensation. With potential redress progressing, some claims may be able to settle successful, and individual complaints remain viable even if they are not always paused. Professional legal support can maximise your chances, especially for complex cases involving unclear finance terms.
Successful claims could potentially be made for hidden commissions on car finance, recovering overpayments, and sometimes additional damages. If you financed a car in the UK and suspect undisclosed commissions or unclear terms affected your deal, contact Your Lawyers today for a free, no-obligation assessment.
Our specialist team has extensive experience helping clients recover compensation efficiently. Visit our website or call us to start your claim and ensure you receive what you are entitled to.
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