The UK car finance market has faced significant scrutiny due to issues surrounding car finance agreement transparency.
Recent legal rulings have exposed practices where car dealers, acting as credit brokers, received undisclosed commissions, leaving consumers unaware of hidden costs in their finance agreements.
Your Lawyers is dedicated to helping UK drivers navigate these challenges and claim the compensation they deserve. This article breaks down the issue, outlines your rights, and provides
actionable steps to seek redress.
Understanding the Issue: Why Car Finance Agreement Transparency Matters
The lack of car finance agreement transparency has been a major concern for UK consumers. Between 2007 and 2021, millions of car finance agreements were made, with many reportedly involving discretionary commission arrangements (DCAs). These arrangements may have allowed dealers to set higher interest rates to earn larger commissions, often without informing customers.
A landmark 2024 Court of Appeal ruling confirmed that such undisclosed commissions breached consumers’ rights to unbiased advice, potentially entitling millions to compensation. The Supreme Court’s 2025 decision clarified that whilst dealers are not fiduciaries, high undisclosed commissions could still create unfair relationships under the Consumer Credit Act.
This lack of transparency in some cases has eroded trust, and Your Lawyers is here to help you
understand and act on your rights.
Your Rights as a Consumer: Are You Eligible for Compensation?
If you entered into a car finance agreement before January 28, 2021, particularly for Personal Contract Purchase (PCP) or Hire Purchase (HP) agreements,
you may be eligible for compensation due to undisclosed commissions. The Financial Conduct Authority (FCA) banned DCAs in 2021, citing conflicts of interest that may have led to higher interest rates for consumers.
The ongoing FCA investigation into agreements from 2007 to 2021 could result in a redress scheme, with estimated payouts potentially in the hundreds or thousands, plus interest. Your Lawyers can assess whether your agreement involved hidden commissions or unclear terms, empowering you to seek compensation for any financial harm caused by a lack of car finance agreement transparency.
Steps to Claim Compensation with Your Lawyers
Claiming compensation for mis-sold car finance is straightforward with the right guidance. Here is how Your Lawyers can assist:
- Gather Documentation: Collect your car finance agreement details, including the date, lender, and type (PCP or HP). Check for any mention of commissions or unclear terms.
- Contact Your Lawyers: Reach out to our team to start the process here now. We can review your agreement to determine if undisclosed commissions impacted your loan.
By addressing the lack of car finance agreement transparency, you could recover significant compensation for hidden costs.
Start Your Claim with Your Lawyers Today
Do not let undisclosed commissions or unclear finance terms cost you more than they should. If you suspect you have been affected by unfair car finance practices, Your Lawyers is here to help you claim what is rightfully yours.
Claim with us today to get started by completing the forms on our website here now. Take the first step towards securing your compensation and holding lenders accountable for transparent practices.
Act now—time limits may apply.
