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In many cases, people have been sold car finance agreements that don’t have their best interests in mind. It could be that you were not presented with all options available, or were given options less-suited to your needs with a view to the provider making more money. This means you may have paid more than you should have – so put in a claim request today to see how much cash you could be owed.
If your mis-sold car finance claim is unsuccessful, you won’t be charged a thing. Only pay when you win!
Use our free assessment tool to see how much you might be owed – it takes no more than 60 seconds.
Trust our panel of expert solicitors to handle your claim while being on-hand for support, always.
Dealerships have a legal obligation to present you with all options available when you’re looking to purchase a vehicle (not to mention advising you with the most suitable option for your needs). In the case of a mis-sold agreement, it could be that you were given misleading information and didn’t make the most cost-effective decision as a result.
In some cases, a “secret commission” was being made by the Dealership. In this instance, the person who sold you the car didn’t disclose that they were making a commission based on the type of agreement sold, and that cost was then covered by you – also known as a “Section 140”.
If you purchased a vehicle on finance between 2007 and 2021, then it is likely that the car finance was mis-sold to you due to the car dealership failing to disclose commission they were paid by the lender for setting up your car finance.
Unbeknown to consumers, some lenders allowed car dealerships to increase the interest rate paid by consumers for their car finance, to increase the commission they earned.
It is estimated that consumers were overcharged by a staggering £300 million a year for their car finance due to the poor practices of car dealerships and lenders*.
*See: https://www.fca.org.uk/publication/multi-firm-reviews/our-work-on-motor-finance-final-findings.pdf s. 2.17, Pg9.
Where it is identified that your Claim is about a Fixed Fee Commission your Lender is expected to provide a response within 8 weeks, but it is taking some Lenders longer than this due to the high volume of Claims they are receiving in this area.
If your Claim is about a Discretionary Commission Arrangement, your Lender does not currently have to respond to this until after 04 December 2025, due to the Financial Conduct Authority’s ongoing review into detriment caused to consumers by this type of commission model. The Financial Conduct Authority has indicated that they may have completed their review as early as May 2025 and if so, would seek to end the proposed pause early.
The amount of compensation you may be entitled to is dependent on several factors, including the amount of finance your lender provided, the date the finance was taken out and the duration of the agreement.
The Financial Conduct Authority, confirmed in their publication Our work on motor finance – final finding – March 2019 that on a typical motor finance agreement of £10,000, a Discretionary Commission Arrangement typically resulted in consumers being overcharged £1,100 over a four-year agreement.*
*See: https://www.fca.org.uk/publication/multi-firm-reviews/our-work-on-motor-finance-final-findings.pdf s. 2.15, Pg9.
You do not have to use a law firm, or claims management company to make your claim. You can claim directly yourself for free to your lender, and then the Financial Ombudsman.
Although you can make your claim directly, you may find it preferrable to use a professional representative, like us, to help you manage the claims process due to our expertise in this area, or simply because you do not have the time.
If we are successful in obtaining an offer or payment of Compensation, then you pay us a Success Fee which is calculated based on the amount of Compensation your lender offers per credit agreement. The table below details the Success Fee percentage applicable to different bands of Compensation, and the maximum total Success Fee for each compensation band.
The percentages and amounts in the table above are exclusive of VAT, which is charged at the prevailing rate.
If you have an outstanding balance with your Lender they may use all, or part of, your compensation to pay this outstanding balance meaning that you may not receive any cash “in hand”. In this event, our Success Fee will still be calculated against the full compensation amount.
Example 1: If your Lender makes an offer of £1,000 compensation and you have no outstanding balance with the Lender, your Lender will pay us £1,000. Of this, £360 will be deducted to pay our Success Fee and VAT, and £640 will be paid to you.
Example 2: If your Lender makes an offer of £1,000 compensation and you have an outstanding balance of £800 with the Lender, your Lender may use the compensation offered to pay the outstanding balance meaning they will only pay us £200. We would use this £200 toward our Success Fee and VAT, which would leave a balance of £160 payable by you.