Qualify for a Car Finance Mis-Selling Claim in the UK – A Guide

Qualify for a Car Finance Mis-Selling Claim in the UK – A Guide

Qualify for a car finance mis-selling claim: The UK car finance mis-selling scandal is now one of the largest consumer redress issues since PPI.

An estimated 40% of car finance agreements taken out between 2007 and 2021 may have contained undisclosed commissions or unclear terms, meaning millions of drivers could qualify for compensation for car finance mis-selling. Your Lawyers is already helping clients secure refunds.

What Exactly is Car Finance Mis-Selling

When it comes to how to know if you qualify for a car finance mis-selling claim, and what finance mis-selling is, it all often falls into two categories:

1. Undisclosed Discretionary Commission Arrangements (DCA): Some dealers and brokers were paid secret commissions by lenders. These commissions allowed brokers to increase your interest rate without your knowledge, purely to boost their own earnings. The higher the interest rate, the bigger their commission may be – often without you ever being told.
2. Unclear or Misleading Finance Terms: Some customers were not properly informed about how PCP balloon payments worked, excess mileage charges, early repayment penalties, or the fact that they did not own the vehicle until the final payment. Some agreements buried crucial information in small print or used confusing jargon.

The Financial Conduct Authority (FCA) banned discretionary commission models in January 2021 and launched a full investigation. A landmark Court of Appeal ruling in October 2024 confirmed that undisclosed commissions were challengeable, opening the floodgates for claims.

If your car, van, or motorbike was financed on a hire purchase (HP), personal contract purchase (PCP), or similar agreement before 28 January 2021, there is a chance you qualify for car finance mis-selling claim compensation – even if the vehicle has been returned or sold.

How Do You Know If You Qualify for a Car Finance Mis-Selling Claim? Key Eligibility Checklist

Use this simple checklist to see if you could be owed thousands:

• Was your vehicle bought on finance between April 2007 and January 2021?
• Was it a PCP, HP, or personal contract hire agreement (not a bank loan or fixed-rate personal loan)?
• Did the dealer or broker arrange the finance (most dealership finance falls into this category)?
• Are you unsure whether a commission was disclosed to you? (If you were not explicitly told in writing, it probably was not disclosed properly.)
• Have you already paid off the agreement or returned the car? You can still claim!

Even company car and mobility scheme users may be eligible in certain circumstances. Your Lawyers can offer a completely free, no-obligation case review. Our specialists can examine your agreement and tell you whether you qualify for car finance mis-selling claim compensation.

How Your Lawyers Makes the Claims Process Simple and Stress-Free

1. Get in Touch – Complete our quick online form or call our dedicated team.
2. Free Case Review – We could help obtain your finance documents (usually electronically from the lender) and check for mis-selling.
3. We Do the Work – If you have a valid case, we can submit the complaint on your behalf – no paperwork for you.
4. You Get Paid – Most claims are settled directly by the lender with 8% compensatory interest sometimes added

Claims can be lodged right now, and the sooner you act, the sooner you could receive your money. Find out today if you qualify for a car finance mis-selling claim compensation. Start here with Your Lawyers for your free, no-obligation eligibility check.

PCP Car Finance Claim Form

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!

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