Have you ever bought a car on finance?
Yes? There is a 99% chance your car dealer received a commission… but did they disclose this to you?
If the answer is no, you might be entitled to compensation. Industry experts estimate that motor finance lenders could owe up to £30 billion.
Could this be you?
We are a claims management company with the relevant expertise. However, you do not need to use a third party to present a complaint to a firm. Following your complaint, if you are not happy with the firm's decision, you can refer your complaint to the Financial Ombudsman Service free of charge.
Did you pay commission without saying 'yes'?
For years, car dealers have been receiving commission on finance deals. But consumers haven’t always been told and this has led to unfairly sold agreements and increased borrowing costs for some. Following the FCA’s motor finance review, the UK Court of Appeal has deemed it unlawful to charge commission without full disclosure and explicit consent from the borrower.
Lenders have appealed to the Supreme Court which will make a judgement following a hearing at the beginning of April. The outcome of that decision will provide more clarity for claimants.
So, if you paid commission without knowing about it, or without giving signed written consent, you might be owed compensation.
The ruling affects all forms of hidden commissions
Discretionary commission arrangements (DCAs):
Brokers change aspects of the loan (like interest rates) to earn more commission.
Non-discretionary commission arrangements (non-DCAs)
Brokers are paid a flat-fee commission regardless of the features of the loan.
While lenders may seek to appeal this decision, unless the Supreme Court overturns it, the law is clear. If you did not consent to the payment or are not satisfied with your finance deal, you should complain.
Ask yourself these questions…
When buying your new car, did you:
Explicitly give your consent to be charged commission?
Know exactly how much commission the car dealer/finance broker was receiving?
Know that the commission will directly affect your loan's interest rate?
If you’ve answered ‘no’ to any of these questions, don’t delay in registering your claim.
The Financial Conduct Authority has extended the deadline for motor finance firms to provide a final response to customer complaints about commission arrangements until 4 December 2025. But claims are expected to be dealt with on a first-come, first-served basis. So logging your claim now means it's more likely to get settled quicker, even if further time restrictions are imposed. The FCA have also stated they are likely to consult on a redress scheme, which they will confirm within 6 weeks of the Supreme Court decision. A redress scheme may mean compensation is paid without the need to file a complaint, however filing a complaint will ensure your interests have been registered and acknowledged by each lender.
Why use Car Finance Claims?
A Hallbrook company… experts in finance claims
Car Finance Claims is part of Hallbrook – a trusted provider of expert financial claims support to clients all over the UK. Over the past 14 years, our full representation service has helped people like you receive over £70 million in compensation for mis-sold investments… be it in pensions, shares, CFDs or bonds.
Thanks to our industry insights, we saw the mis-sold car finance scandal coming, so we’ve already been working on this issue for a number of years. By using Car Finance Claims, you’ll feel the benefit of…
Industry know-how and expertise
Car finance details tracking
A fully-automated online system
Your time back
Established list of affected Lenders
Regular updates
A worry-free start-to-finish process
A team behind you that cares
How much does it cost?
Nothing to pay upfront
We operate a conditional fee agreement, which means you only pay us when your claim is successfully completed.
Please see our full Terms for cancellation fees following the 14-day cooling-off period.
Successful claims
When your claim has been successfully completed, we’ll charge a fee between 18% and 36% inc VAT based on the amount of compensation awarded.
Our fees also benefit from a Fee Cap, which means you could pay less. For more information see our full Terms.
You do not need to use a third party to make a claim, the Financial Ombudsman Service (FOS) is a free service, however you must direct your complaint directly to the firm before it can be referred to the FOS.
