Car finance mis-selling in the UK has emerged as a significant issue, affecting millions of drivers who may have been overcharged due to hidden commissions and unclear finance terms.
Your Lawyers is committed to helping you navigate this complex issue and secure the compensation you deserve.
This article explains the key aspects of car finance mis-selling in the UK, how it affects you, and the steps you can take to claim compensation for unfair practices.
Car finance mis-selling in the UK can occur when lenders or brokers fail to disclose critical information about finance agreements, such as commissions paid to dealers or the full terms of the contract. Before January 2021, many car finance agreements, including Personal Contract Purchase (PCP) and Hire Purchase (HP) deals, included discretionary commission arrangements (DCAs). These allowed brokers to increase interest rates to earn higher commissions without informing customers, leading to inflated costs. Additionally, unclear finance terms left some consumers unaware of their obligations, such as balloon payments or ownership details at the end of the contract.
The Financial Conduct Authority (FCA) banned DCAs in 2021 after discovering widespread misconduct, with estimates suggesting that 40% of car finance agreements may have been mis-sold. A landmark Court of Appeal ruling in October 2024 further expanded the scope, stating that any commission—discretionary or not—required the customer’s fully informed consent. This has opened the door for millions of drivers who financed vehicles between 2007 and 2021 to seek compensation for car finance mis-selling in the UK.
If you took out a car finance agreement before January 28, 2021, you may be eligible for compensation. If any of issues apply to your PCP or HP agreement, you could be owed significant compensation, potentially thousands of pounds per claim. Your Lawyers can help you check your eligibility by reviewing your finance agreement details, even if you no longer own the vehicle.
Claiming compensation for car finance mis-selling in the UK can be straightforward with Your Lawyers. Our experienced team specialises in consumer claims and has a proven track record of securing payouts for clients.
Here is how we can assist:
By acting now, you can ensure your claim is processed promptly and avoid missing key deadlines.
Do not miss out on the compensation you may be owed for car finance mis-selling in the UK. Your Lawyers makes the process simple, transparent, and hassle-free.
Visit our website for a free eligibility check and let us help you reclaim what you may be owed. Act now to join thousands of drivers seeking justice for unfair car finance agreements—time is limited, so start your claim with Your Lawyers today.
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 NowThe content of this post/page was considered accurate at the time of the original posting and/or at the time of any posted revision. The content of this page may, therefore, be out of date. The information contained within this page does not constitute legal advice. Any reliance you place on the information contained within this page is done so at your own risk.