If you think you might have a claim for mis‑sold car finance—PCP or HP agreements where dealers received hidden commissions, inflated interest or failed to check affordability—you could be owed compensation.
(no obligation – no-win, no-fee)
What is mis‑sold car finance?
Mis‑selling occurs when you’re sold a finance deal that is unsuitable, unclear, or not properly explained. Common issues include:
- Discretionary Commission Arrangements (DCAs): Dealers received extra commission when charging higher interest—often without telling you.
- Undisclosed commissions: Dealers failed to inform you they’d be paid by the lender—potentially making the deal “unfair” under the Consumer Credit Act.
- Poor affordability checks or advice: You were rushed or sold finance you couldn’t afford.
- Confusing or aggressive marketing: Essential terms, balloon payments or interest variances were never properly explained .
These practices mainly affected PCP or HP agreements taken out before 28 January 2021, when DCAs were banned by the FCA.
Supreme Court Ruling
In April 2025, the Supreme Court heard the conjoined cases of Johnson, Wrench and Hopcraft, concerning undisclosed commissions. By July 2025, it confirmed that undisclosed or improperly disclosed commissions were unlawful and that dealers (and indirectly lenders) may be liable across the entire market.
Who could be eligible?
You may be entitled to compensation if you:
- Took out a PCP or HP agreement between 2007 and 28 January 2021
- Were not informed of dealer commissions, or believe the interest rate was inflated due to DCA
- Felt misled, pressured, or lacked clarity on the terms during the sale
The FCA estimates up to 95% of finance agreements included commissions and that approximately 40% may have been mis-sold.
Typical compensation amounts
- Claims often return £1,000–£1,600, with higher settlements up to £5,000–£10,000+
- Estimated compensation across all affected individuals may reach £40 billion, comparable with the PPI scandal
How to make a claim
Click the button below to start your free assessment and get matched with a specialist solicitor:
(no obligation – no-win, no-fee)
FCA Redress Scheme & Deadline
- FCA is preparing an industry-wide redress scheme to simplify claims—no need for claims firms
- Responses to complaints may be paused until 4 December 2025; firms then have eight weeks to provide a final response
- FCA aims to finalise scheme details within six weeks after the Supreme Court judgment
Time limit
You typically have up to six years from the end of your finance agreement under the Limitation Act 1980 to make a claim.
Why choose ConsumerClaims.co?
- Free, no obligation eligibility check
- Match with SRA‑regulated solicitors working on a genuine no‑win, no‑fee basis
- Full support through every step—from document gathering to settlement
- We’re a non‑profit, so our service remains truly free for you
FAQs
Will my credit rating be affected?
No. Raising a complaint or claim does not impact your credit score.
Can I still claim if I sold the car or paid off the loan?
Yes. You can claim for past agreements even if the vehicle is gone or the finance has been settled.
What if I can’t find my paperwork?
You don’t need to—we can often validate agreements using publicly held data.
