Car Finance Refund Claim

Mis-Sold Car Finance Claims

Have you bought a new or used car using finance in the last ten years? If you have, that finance agreement may have been mis-sold to you, and you may be able to claim hundreds, if not thousands of pounds in compensation.

Was My Car Finance Mis-sold?

Mis-selling has been discovered on all motor vehicle types, including new and used cars and vans under all vehicle financing options such as personal contract hire (PCP), hire purchase (HP), Contract hire or a car loan.


In relation to the hidden commission, your car finance deal may have been mis-sold if:

The car salesperson did not fully explain they would receive a commission on the sale of the car

The lender/bank did not fully explain the commission

The salesperson skipped through the car finance agreement Terms & Conditions

The customer felt pressured into the finance deal and was not given a range of options including explaining all of the differences in each type of product

The payments were unaffordable or no finance credit checks were carried out

The salesperson did not make it clear who was financially responsible for the repairs to the vehicle?

The salesperson did not offer the best interest rate available to you?

The salesperson did not present to you, with complete transparency, the interest rates charged for all loan options and how they may differ?

Don’t worry if you can’t find the agreement or remember who the lender or dealership was. You just need the name of the company you made the payments to. You should be able to find this information on your old bank statements. The potential for a refund and compensation on these loan claims is still being investigated so please check back shortly.

You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.

What Is Mis-sold Car Finance?

A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of mis-selling on all types of vehicle financing options. Unknown to customers buying vehicles, lenders systematically incentivised brokers and car dealers to charge their customers higher interest rates so they could receive higher commissions themselves. As one car dealer openly admits in a recent article, “frankly, we were getting away with murder. We weren’t treating customers fairly and were, in effect, charging them to earn us money.”

The FCA estimated that hundreds of thousands of motorists might have been mis-sold finance packages. In some cases, customers are being overcharged by over £1,000 in interest in order for the dealership to obtain a higher commission pay-out. The FCA estimates this could be costing consumers £300 million annually.

Reports have shown that the car finance industry is rife with these secret payments and hidden commissions, meaning you could have been mis-sold your finance deal.