If you believe your agreement was mis-sold,
you may be entitled to claim a car finance refund. Here is what you need to know and how Your Lawyers can help.
Car finance has helped millions of people across the UK get behind the wheel. However, investigations by the Financial Conduct Authority (FCA) have revealed that many agreements included undisclosed commissions and unclear terms — potentially leaving drivers out of pocket.
Understanding the Undisclosed Commission Scandal
Between 2007 and 2021, many lenders allowed car dealers to increase interest rates on finance agreements to earn higher commissions. These are often known as discretionary commission arrangements (DCAs). The problem? Customers were rarely told this was happening.
In January 2024, the Financial Conduct Authority launched a formal review into historic motor finance commission practices. This could lead to widespread compensation for affected consumers.
You may have been impacted if:
- You were not informed that the dealer received a commission.
- The commission structure influenced the interest rate you were offered.
- The finance terms were unclear, misleading, or not fully explained.
- You felt pressured into signing without understanding the agreement.
If any of these apply,
you may be eligible to claim a car finance refund and recover interest you should never have paid.
Claim a Car Finance Refund: Who Can Make a Claim?
Most Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements arranged through dealerships could be affected. It does not matter whether the car has been paid off, sold, or the agreement has ended — you may still qualify.
You may be able to claim if:
- Your agreement was taken out between 2007 and 2021.
- You financed a car, van, or motorbike through a dealership.
- You were not clearly told how the commission was calculated.
- The interest rate seemed unusually high without explanation.
Even if you no longer have the paperwork, lenders are required to keep records. A specialist solicitor can request this information on your behalf.
Your Lawyers has extensive experience in financial mis-selling claims and consumer protection law. We carefully review agreements to identify hidden commission structures and unfair terms.
Why Acting Now Matters
The ongoing reviews and claims already established may result in a formal compensation finally being issued. However, claims could be subject to time limits, and lenders may begin reviewing cases proactively.
By starting your claim early, you could:
- Protect your position ahead of any deadlines.
- Ensure evidence is secured while records are accessible.
- Gain clarity on whether you were treated unfairly.
- Potentially recover hundreds or thousands in overpaid interest.
Motor finance agreements can be complex legal contracts. Having experienced solicitors assess your case could potentially increase the likelihood of a successful outcome and reduces the stress of dealing with lenders directly.
Take the First Step Today
If you suspect you were charged inflated interest due to undisclosed commission or unclear finance terms, now is the time to act.
Contact Your Lawyers for a free, no-obligation assessment and find out if you could claim a car finance refund. Our expert team can guide you through every step of the process, explain your rights clearly, and fight to recover the compensation you deserve.
Do not leave money unclaimed —
start your case today and take back control of your finances.
