The UK car finance mis-selling scandal has rocked the automotive and financial sectors, affecting millions of drivers who may have been charged inflated interest rates due to undisclosed commissions and unclear finance terms.
Between 2007 and 2021, many car finance agreements, including Personal Contract Purchase (PCP) and Hire Purchase (HP) deals, allegedly involved hidden discretionary commission arrangements (DCAs) that allowed brokers to increase interest rates for higher commissions without informing customers.
At Your Lawyers, we are committed to helping victims of the UK car finance mis-selling scandal secure compensation for the financial losses and distress caused by these unfair practices. Our expert team is here to guide you through the claims process and fight for the redress you deserve.
The UK car finance mis-selling scandal centres on the widespread use of discretionary commission arrangements (DCAs) before their ban by the Financial Conduct Authority (FCA) in January 2021. These arrangements incentivised brokers and car dealers to impose higher interest rates on finance agreements, increasing their commissions at the expense of unsuspecting customers.
Additionally, many consumers were not provided with clear information about the terms of their finance deals, including the total cost of credit or the existence of commissions. According to the FCA, up to 95% of car finance agreements included some form of commission, with an estimated 40% involving DCAs, potentially costing consumers £300 million annually. This lack of transparency led to customers overpaying, with some paying up to £1,100 more on a typical £10,000 four-year finance deal.
Your Lawyers is actively pursuing claims to recover these overpayments and hold negligent lenders accountable.
Pursuing a compensation claim for the UK car finance mis-selling scandal involves proving that you were not fully informed about commissions or that the finance terms were unclear or unfair. Eligible claimants include those who entered PCP or HP agreements for personal use of vehicles before 28 January 2021.
The FCA is investigating the issue, with a potential industry-wide redress scheme on the horizon, which could see lenders proactively contacting affected customers. However, lodging a complaint now strengthens your position, as statutory deadlines apply.
Your Lawyers operate on a no-win, no-fee basis, gathering evidence such as finance agreements and correspondence to build a robust case. Compensation can cover the excess interest paid, plus possible interest on overpayments. Our team can ensure a seamless process, keeping you informed and maximising your claim’s success.
At Your Lawyers, we bring extensive experience in financial mis-selling claims, offering expertise and dedication to victims of the UK car finance mis-selling scandal. Our no-win, no-fee approach means you face no worries, and our proven track record includes securing substantial compensation for clients affected by unfair financial practices.
We can handle all aspects of your claim, from assessing eligibility to negotiating with lenders, ensuring you receive the maximum payout possible. With the FCA’s investigation ongoing and a Supreme Court ruling expected in 2025, now is the time to act. Our compassionate team provides personalised support, helping you navigate this complex process with confidence and clarity, so you can focus on moving forward.
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