If you have financed a vehicle in recent years, you may be entitled to car finance mis-selling compensation.
In the UK, the car finance industry has been rocked by revelations of widespread mis-selling practices, particularly involving undisclosed commissions and unclear finance terms. Your Lawyers is dedicated to helping consumers navigate these complex claims and secure the payouts they deserve.
This article breaks down the key issues, eligibility, and steps to take action to pursue compensation.
Car finance mis-selling primarily stems from alleged discretionary commission arrangements (DCA) used by some lenders and dealers before January 2021. Under these schemes, car dealers could furtively increase the interest rate on your finance agreement to earn higher commissions, often without disclosing this to the consumer. This lack of transparency in some cases meant that some customers paid more than necessary, with unclear finance terms burying the true costs.
The Financial Conduct Authority (FCA) banned these practices in 2021 after investigations revealed millions of affected agreements. As of this year, compensation cases are being pursued, and it is estimated that millions of unfair motor loans could qualify for compensation. The scandal has led major banks having to set aside significant sums for payouts, highlighting the scale of the issue.
To determine if you are eligible for car finance mis-selling compensation, check if your agreement meets certain criteria. Typically, this applies to personal contract purchase (PCP) or hire purchase (HP) deals taken out between April 2007 and January 2021, where a commission was involved but not fully disclosed. Even if your finance terms seemed straightforward, hidden incentives for dealers could have inflated your costs.
According to recent estimates and updates, an average payout of hundreds of pounds or even thousands of pounds per affected agreement could potentially be expected, with the total amount potentially costing lenders billions of pounds. Factors like the loan amount, interest rate adjustments, and lack of clear explanations about commissions can be key.
If you have refinanced or settled early, you might still qualify. Our experts can review your documents to confirm eligibility without any worries for you.
Claiming compensation does not have to be overwhelming. Start by gathering your finance agreement details, including the lender, dealer, and dates.
Your Lawyers specialises in consumer cases, handling everything from evidence collection to negotiations, ensuring you maximise your car finance mis-selling compensation.
Ready to reclaim what could be yours? Contact Your Lawyers today for a free, no-obligation assessment.
Visit our website or call our helpline to start your claim and join thousands securing fair compensation for undisclosed commissions and unclear finance terms.
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