Are You Owed Money from a Mis-Sold Car Finanbest trump impressionce Deal?
When you bought your car, you trusted the dealership. The friendly smile. The test drive. The "good news" phone call about your finance rate.
But behind it all, something was happening you were never told about.
Your interest rate may have been inflated to boost your dealer's commission - and now, you could be owed compensation.
Why Your Finance Rate Wasn't Just About Approval
Between 2007 and 2024, many UK dealers used a scheme called a Discretionary Commission Arrangement.
It worked like this:
• Dealers could increase your interest rate
• The higher the rate, the more commission they earned
• You were never told this was happening
This wasn't a few rogue dealerships. It was standard practice. And the FCA has officially found that it was wrong.
You Thought They Were Finding You the Best Deal
When your dealer said "Let me see what I can do," they were negotiating a better deal - for themselves.
They had the power to adjust your rate, and many did exactly that to increase their earnings.
You thought you were getting the best rate. In many cases, you weren't.
What It Cost You: Thousands in Hidden Interest
Let's break it down.
On a typical £15,000 finance agreement, the dealer's commission might have been £700 to £2,000, depending on the rate they chose.
That meant you paid more in interest over the full term - without ever knowing why.
This hidden cost was built into every monthly payment. For 3 or 4 years, you unknowingly helped fund your dealer's bonus.
They said, "This is the best I can do" - but it wasn't. Thousands of customers heard that line. But according to the FCA's investigation, it often wasn't true.
The "best" rate offered was often the one that paid the dealer the most - not the one that saved you money.
This Was an Industry-Wide Practice
From major dealer groups like:
• Arnold Clark
• Lookers
• Evans Halshaw
all the way to your local independent garage - these commission setups were everywhere.
Big-name lenders like:
• Black Horse
• Santander
• Close Brothers
• MotoNovo
and dozens of others...
They all used them. It was systematic. For nearly two decades, this is how UK car finance worked.
14 Million Finance Deals May Have Been Affected - Was Yours One of Them?
In October 2024, the Supreme Court ruled these hidden commissions were unfair.
The FCA responded by setting up an £8.2 billion compensation scheme to help affected drivers.
If you financed a vehicle between 2007 and 2024, you could be one of 14 million eligible for a payout.
What You Could Be Owed: £700 Per Agreement on Average
That's £700 per car you financed.
If you've had multiple vehicles over the years, each one counts:
• 2 cars = £1,400
• 3 cars = £2,100
• 4 cars = £2,800
Even if you don't remember the details - even if the car is long gone - you can still claim.
This Wasn't Your Fault - Countless People Were Misled
Don't blame yourself for not spotting it. These commission deals were deliberately hidden:
• No line in the contract
• No explanation from the dealer
• No mention in the interest rate breakdown
Even people who read every word of their finance agreement wouldn't have known. The system was designed to keep you in the dark.
The Sooner You Complain, the Sooner You're Paid
The FCA scheme officially begins in 2026. But here's a smart move:
Complain before the launch, and you get:
• Automatic inclusion in the scheme
• Priority processing
• A 3-month response window from lenders
Wait until 2026, and you face:
• 6-month wait times
• The need to opt in manually
• Back of the queue with millions of others
Over 500,000 people have already claimed early. They'll be first in line.
No Documents? No Problem - It Only Takes Two Minutes
Worried it'll be a hassle? It isn't.
You don't need:
• Your finance paperwork
• Registration numbers
• Even the name of your lender
The system can find your old agreements from just a few details.
Multiple cars? One form covers them all.
What You're Actually Claiming For
This isn't about the car. It's not about whether your interest rate was high or low.
You're claiming because:
• You weren't told your dealer could change your rate
• You weren't told how their commission worked
• You weren't given the info you needed to make a fair decision
That's what makes it mis-selling - and that's what the FCA compensation scheme is about.
You Only Pay If You Win**
Our partner law firm, Prowse Philips Law Ltd, works on a No Win, No Fee basis. That means You'll only pay if you receive compensation.
• If your claim fails, you pay nothing (except a termination fee if you cancel early)
• If you win, their typical fee is 30% + VAT
You don't pay to check. You don't pay to start. You only pay if you get a payout.
These Are the Lenders and Dealers Involved
The scheme covers nearly all major lenders and thousands of dealers, including:
• Black Horse (Lloyds)
• Santander Consumer Finance
• Close Brothers Motor Finance
• MotoNovo Finance
• BMW Financial Services
• Mercedes-Benz Finance
• Volkswagen Financial Services
• And many more
Think You Might Have a Claim? Here's What To Do
