At Your Lawyers, our expert car finance compensation solicitors are dedicated to helping you reclaim what you could be owed.
Recent revelations about undisclosed commissions and unclear finance terms in the UK car finance industry have left many drivers potentially eligible for compensation. If you financed a vehicle before January 2021, you might have been overcharged without your knowledge.
This article breaks down the issue, outlines how to build a claim, and explains why partnering with us can secure the justice you deserve.
The UK car finance market, worth £40 billion annually, has faced scrutiny for practices that harmed consumers. Before 2021, many lenders used discretionary commission arrangements (DCAs), allowing dealers to inflate interest rates to earn higher commissions – often without informing customers. Additionally, unclear finance terms, such as vague explanations of repayment structures or ownership details in Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements, left some buyers confused about their obligations. For example, some were unaware they did not own their vehicle until a final payment was made.
These practices led to widespread overcharging. The Financial Conduct Authority (FCA) estimates that 95% of car finance deals involved commissions, with 40% potentially mis-sold. If you signed a deal without full disclosure of commissions or struggled to understand the terms, you may have a valid claim. Your Lawyers can assess your agreement to determine if you are owed compensation for these unfair practices.
Pursuing compensation requires evidence that your finance agreement was mis-sold due to undisclosed commissions or unclear terms. Start by gathering documents like your finance contract, payment records, and any correspondence with the dealer or lender. Noting how the terms were explained – or not – during the sale can also help. For instance, if a salesperson rushed through details or omitted commission information, it can strengthen your case.
Timing is critical. Claims typically need to be filed within six years of the agreement or three years from when you became aware of the issue. Your Lawyers, as experienced car finance compensation solicitors, streamline this process. We review your documents, consult financial experts to confirm mis-selling, and build a case showing how the lender or dealer breached their duty of transparency. Compensation could cover excess interest paid, distress, and even loan cancellation in some cases, with average payouts of around £1,600 per agreement. Our no-win, no-fee approach ensures you can claim safely.
Navigating the complexities of car finance claims demands expertise and persistence. We can handle every aspect of your claim, from tracking down old agreements to negotiating with finance providers.
If you suspect you were overcharged due to undisclosed commissions or misled by unclear finance terms, do not wait to act. The FCA’s ongoing investigation may lead to a redress scheme by May 2025, but filing now potentially positions you for faster resolution.
Claim with Your Lawyers, your dedicated car finance compensation solicitors – visit our website to see if you are eligible.
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