This article from Your Lawyers explores the issue, helping you understand how to pursue a car loan hidden commission refund and recover what you are owed.
The UK’s car finance sector has been rocked by revelations of mis-selling practices, particularly involving undisclosed commissions paid to dealers by lenders. If you financed a vehicle through personal contract purchase (PCP) or hire purchase (HP) agreements before January 2021, you might be eligible for compensation.
For years, many car finance deals in the UK included discretionary commission arrangements (DCA), where dealers could inflate interest rates to earn higher commissions from lenders without fully disclosing this to customers. This lack of transparency can led to consumers paying more than necessary, with unclear terms exacerbating the problem. The Financial Conduct Authority (FCA) banned these practices in 2021, but millions of agreements predating this are now under scrutiny for potential mis-selling.
Recent developments, including compensation claims, highlight the scale of the issue. Banks and lenders may face billions in redress, with estimates suggesting the total bill could easily be in the billions. This stems from complaints about hidden commissions and opaque finance terms that left drivers overpaying.
If you have experienced this, seeking a car loan hidden commission refund could result in compensation payouts, as the regulator pushes for fair resolutions.
Determining eligibility is key to claiming compensation. Generally, if you entered into a car finance agreement between April 2007 and January 2021 that involved a DCA, you may qualify. This applies to both new and used vehicles, as long as the dealer received an undisclosed commission influencing your interest rate. The FCA’s ongoing review has identified millions of potentially affected agreements, with average compensation expected to be in the hundreds to thousands of pounds mark per mis-sold deal.
Signs of eligibility can include higher-than-expected interest rates or a lack of clear information about commissions at the point of sale. Even if your finance term has ended, you could potentially still claim, as long as the agreement falls within the relevant period.
Your Lawyers specialises in reviewing these cases to confirm if you are due a car loan hidden commission refund, ensuring you do not miss out on what could be rightful compensation amid this widespread scandal.
Starting a claim is straightforward with professional guidance. First, gather details like your finance agreement, vehicle registration, and any correspondence from the lender. Your Lawyers can then assess your case for free, handling complaints to the lender or escalating to the Financial Ombudsman Service if needed.
Your Lawyers has extensive experience in compensation claims, maximising your chances of success without any worries. We can navigate the complexities of undisclosed commissions and unclear terms, aiming for the best possible outcome.
Take Action Today
Do not delay—millions are already pursuing claims, and deadlines may apply once the FCA finalises its scheme. Contact Your Lawyers today for a no-obligation assessment of your car finance agreement.
Visit our website or call us to start your journey toward securing the compensation you deserve. Let us help you claim what is rightfully yours.
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.