The UK car finance industry has faced significant scrutiny due to widespread car dealership finance mis-selling, particularly involving undisclosed commissions and unclear finance terms.
Your Lawyers is committed to helping consumers navigate this complex issue and secure the compensation they deserve. If you need legal help as a victim of this issue, we are here to help you now.
This article explains the problem, who can claim, and
how to take action with our expert legal support.
Understanding Car Dealership Finance Mis-Selling
Car dealership finance mis-selling occurs when car dealers or brokers fail to disclose critical information about finance agreements, such as commissions paid by lenders or the full terms of the contract. Between 2007 and January 2021, many Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements included discretionary commission arrangements (DCAs), where dealers could increase interest rates to earn higher commissions without informing customers. This lack of transparency often led to consumers paying significantly more than necessary.
Additionally, unclear explanations of ownership terms, balloon payments, or the consequences of missed payments have left some buyers misled. Following a 2021 Financial Conduct Authority (FCA) investigation and a Supreme Court ruling in August 2025, the focus has shifted to compensating those affected by these unfair practices.
Who Is Eligible for Compensation?
You may be eligible to claim compensation for car dealership finance mis-selling if you purchased a vehicle—new or used—through a PCP or HP agreement between April 2007 and January 28, 2021.
Key eligibility criteria include:
- Undisclosed Commissions: If the dealer or broker did not inform you about commissions they received from the lender, especially under DCAs, you may have a claim.
- Unclear Finance Terms: If the salesperson failed to explain critical details, such as ownership conditions, balloon payments, or the total cost of the agreement, you could be entitled to redress.
The FCA estimates that millions of consumers could be eligible, with potential compensation in the hundreds to the thousands, depending on the harm suffered.
How Your Lawyers Can Help You Claim
Your Lawyers can help with your car dealership finance mis-selling claims, offering a no-win, no-fee service to make the process stress-free.
Our expert team can:
- Assess Your Eligibility: We can review your finance agreement to determine if you were mis-sold due to hidden commissions or unclear terms.
- Gather Evidence: We can collect necessary documentation and negotiate directly with lenders or dealers to maximise your compensation.
- Guide You Through the Process: We can ensure your claim is filed correctly and promptly.
By starting your claim now, you can make sure your case is ready when compensation is processed quickly.
Do not let car dealership finance mis-selling cost you more than it already has. If you financed a car, van, or motorbike before January 2021, you could be owed compensation for undisclosed commissions or unclear terms.
Claim with Your Lawyers today for a free, no-obligation check of your eligibility and start your case.
Visit our website or call us to join thousands of others seeking justice.
Act now—secure your compensation with Your Lawyers before it becomes too late to claim. Do not miss out!
