Drivers could claim hundreds for car finance mis-selling – some may have multiple payouts (aff)
Millions of drivers may have overpaid for car finance before 2021, and those with multiple agreements could be owed more
Millions of UK drivers could be owed compensation after a major investigation into how car finance deals were sold, with some potentially able to claim more than once.
The issue centres on a now-banned practice that allowed car dealers to increase interest rates on finance agreements in order to earn higher commission. The higher the rate offered to the customer, the more money the dealer could make.
That practice, known as a discretionary commission arrangement, was banned by the Financial Conduct Authority in 2021. But for years before that, it was widely used across the industry, meaning many drivers may have unknowingly paid more than they needed to.
Now, the way those deals were sold is under scrutiny, and consumers are being encouraged to check whether they were affected.
Check your car finance agreement here to see if you could claim compensation.
How much could drivers get back?
While payouts will vary depending on the agreement, some drivers could be owed hundreds of pounds – and in certain cases, potentially more.
Compensation is typically linked to how much extra interest was paid as a result of the inflated rate. If a dealer increased the rate without clearly explaining how it affected the cost of borrowing, that could form the basis of a claim.
Because car finance agreements often run over several years, even small differences in interest rates could add up to a significant amount over time.
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Why some drivers may have multiple claims
One key detail many people overlook is how often they’ve used car finance.
Drivers who regularly change vehicles – for example every two to four years – may have taken out several finance agreements over time. Each of those agreements could potentially be reviewed separately.
That means some motorists could have more than one claim, especially if they financed multiple cars between 2007 and 2021.
Check your car finance agreement here to see if you could claim compensation.
It's very easy to find out
Legal specialists are waiting to wade through your previous car deals and help you identify any compensation may be due.
Click here to enter some basic details, and let expert consumer lawyers handle the rest.
Fees are transparent, and if you don’t win your case, there’s nothing to pay.
Which agreements could be affected?
The investigation focuses on agreements taken out before 2021, when discretionary commission models were still allowed.
This includes many common types of car finance, such as Personal contract purchase (PCP) and Hire purchase (HP).
If the finance was arranged through a dealership, rather than directly with a lender, there’s a higher chance the agreement may have involved commission structures now under review.
Even if the deal seemed straightforward at the time, many drivers were not told how interest rates were set or how commission worked in the background.
Why this matters now
The scale of the issue has led to a major review of historic car finance deals, with millions of agreements potentially affected across the UK.
For many drivers, the biggest surprise is simply not realising they may have overpaid at all.
That’s why consumer experts are encouraging people to take a few minutes to check old agreements – especially if they’ve had more than one car on finance.
Check your car finance agreement here to see if you could claim compensation.
Even if you no longer have the paperwork, it may still be possible to trace past agreements and find out whether you were affected.