If you purchased a vehicle through a Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement before January 28, 2021, you may be eligible for compensation through a UK car finance legal claim.
In recent years, the UK car finance industry has faced significant scrutiny due to undisclosed commissions and unclear finance terms, affecting countless motorists. Your Lawyers specialises in helping consumers navigate this complex issue to reclaim what they are owed.
This article explores the issue, outlines how to identify if you are affected, and explains how Your Lawyers can guide you through the claims process.
Many UK drivers entered car finance agreements unaware that dealers were receiving commissions from lenders, often without disclosure. These undisclosed commissions sometimes led to inflated interest rates, costing consumers more than necessary. Additionally, unclear finance terms left some borrowers confused about repayment structures, balloon payments, or ownership details.
The Financial Conduct Authority (FCA) banned discretionary commission arrangements (DCAs) in 2021 after finding that they incentivised dealers to increase interest rates for higher commissions, often without informing customers. A landmark 2024 Court of Appeal ruling further expanded the scope, declaring that commission—discretionary or not—must have the customer’s informed consent, making many agreements potentially unlawful.
If you suspect you were misled, a UK car finance legal claim with Your Lawyers may be able to help you seek redress for these unfair practices.
Your Lawyers has extensive experience handling UK car finance legal claims, having supported thousands of clients in consumer rights cases. Our process is straightforward and client-focused:
Compensation can include overpaid interest, additional charges, and, in some cases, 8% interest on overpayments, with average payouts potentially in the thousands of pounds region.
Pursuing a claim may seem daunting, but Your Lawyers makes it simple. Claim with Your Lawyers for a free assessment. Our team can review your case, confirm eligibility, and guide you through the process, ensuring your claim is robust and timely. Even if you have paid off your loan or no longer own the vehicle, you may still be eligible.
Do not let undisclosed commissions or unclear finance terms cost you more than they should. If you financed a car, van, or motorbike before January 2021, you could be owed thousands in compensation.
Claim with Your Lawyers today for a free, no-obligation assessment of your UK car finance legal claim. Act now—time limits may apply, and Your Lawyers is here to fight for your rights.
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