Undisclosed Car Finance Commission Claims

If you bought a car between 2010 and 2020 you may be legally entitled to make a claim for hidden commission mis-selling.
You may also be entitled to make a claim if we find your interest was overcharged
Your claim will be handled by a highly qualified experienced solicitor on a No Win No Fee basis.
Some motor dealers are overcharging unsuspecting customers over £1,000 in interest charges in order to obtain bigger commission payouts for themselves. This is unacceptable!

-Jonathan Davidson, former director of supervision for retail and authorisations at the FCA

What Is The Undisclosed Commission Scandal?

The Financial Conduct Authority (FCA) initially brought attention to this issue in 2019. Following their investigation, they found that among the 122 car dealerships evaluated by undercover shoppers, only 11 dealerships confirmed the inclusion of commission on this type of deal.

If you've received subpar advice regarding your car finance choices or were unaware of any commission within the agreement, you might have grounds for a claim based on their findings.

Both Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements serve as loans for car purchases, catering to those without upfront funds.

However, unlike a standard personal loan, these agreements don't involve paying off the car's full value, and ownership isn't guaranteed at the agreement's end unless you settle the final balloon payment.

The issue lies in potentially misleading PCP and HP finance agreements, stemming from inadequate information provided during the purchase. This usually results from miscommunication, lender misconduct, or salespeople's desire for quick sales and commissions.

Car finance agreements can be intricate and might include commissions. This means salespeople might push a finance agreement for their gain, even if it's not your best option.

Examples of the Mis-Sold Car Finance Scandal

Here are some primary factors that could lead to a potential PCP or HP car finance claim:
Undisclosed or hidden commission

Countless customers might have been entirely oblivious to any commission charges. When a car salesperson is compensated for securing a car finance deal with a bank and this commission remains undisclosed by the finance provider, it constitutes a concealed or undisclosed commission. The finance provider or bank has the obligation to transparently disclose ALL fees associated with the transaction.

High-pressure sales tactics

If you felt coerced into accepting a finance agreement that didn't align with your preferences, you could potentially seek compensation. It's essential that the salesperson allows you adequate time to evaluate the offered deal and explore other options. In cases where they earn commission, they might not provide alternative choices.

Lack of proper affordability checks

Numerous customers enter loan agreements ill-matched to their financial circumstances. This results in them being ensnared by PCP or HP deals, unable to manage payments throughout the agreement's entire term.

Inflated prices and overcharges in interest

Certain instances indicate that customers are subjected to over £1,100 in excess interest charges, benefiting the dealership with a higher commission payout.

How National Car Finance Claims can help you?

We are one of the leading claims management companies in the UK, helping people claim the compensation they rightly deserve for being mis-sold when taking out car finance. We have introduced document processing software that takes away any leg work from you and allows us to find all potential claims you may have. We have a specialist team that will stay connected with you throughout your eligibility check and will be on hand to answer any questions you may have. If we determine that you were affected by hidden commissions or overcharged interest on any of your agreements, we will pass your file to one of our panel SRA regulated solicitors to begin your claim, ensuring your claim is dealt with efficiently and professionally.

Completely free, no obligation eligibility check
Completely No-Win, No-Fee process
Panel of SRA regulated solicitors
Specialist team on hand for support

Our simple claim process

Find out if your dealership hid commission from you?
Check Your Eligibility

Use our completely free, no obligation tool to discover all potential claims you may have.

Provide ID

You will need to upload your photo ID to ensure we have verified your identity when we request your information. This is a security check put in place by most lenders.

Build Your Case

After obtaining the documents from your lender, we evaluate them based on our legal panel's criteria. If they align with the criteria, we will then forward the case to one of our legal panel members.

Recieve Compensation

Upon transferring your case to our legal panel, they will oversee the process and work towards securing the compensation you rightfully deserve.

What our Clients are saying?

Swift Solutions and Expert Guidance

Their expertise uncovered what I had no idea about – a mis-sold car finance agreement. Their relentless effort led to rightful compensation. Truly grateful!

A Lifesaver in the Chaos

I knew I was stuck with a bad deal from start and couldn't do anything about it, but these superheroes saved the day. Cheers to getting back what's rightfully mine – who knew car finance could be this dramatic!

Grateful towards HDCS:

I can't thank them enough. They untangled the car finance nightmare I was stuck in. Their team's dedication brought me relief and the compensation I deserved.

Empathetic and Supportive

Facing mis-sold car finance was overwhelming. Their compassionate team understood my situation and fought for my rights. Grateful for their guidance and fair compensation.

Mis-sold Car Finance FAQ

PCP finance is a fairly new form of finance and is quite complicated. Usually, you will not end up paying off the full value of the vehicle and often won't end up owning the vehicle at the end of the contract, unless you pay the 'Balloon Payment'.

We are happy to perform an eligibility check on anybody that has taken out vehicle finance between 2010-2020. If we find that you were affected by hidden commissions and/or overcharged interest, then we will pass your file to one of our SRA/FCA regulated solicitor panel.

The amount of compensation will vary and is dependent on several factors:

  • The size of the loan
  • The length of time you were in the contract
  • How much interest you paid.

Most accepted claims are worth several thousands of pounds.

We make things easy for you. We can take away the leg work of finding your finance agreement from you and can very easily check for any other potential claims you did not know about. You can use our free service and leave everything to us. We have a panel of expert solicitors that are regulated with the SRA, ensuring your claim is dealt with efficiently and professionally.

This is something most people would not know until we have performed an eligibility check on your agreement. There are several examples of your agreement(s) being mis-sold to you:

  • Commissions paid to the car dealer were not disclosed to you.
  • High pressure sales tactics from the salesperson.
  • No or improper affordability checks.
  • Increased/Overcharged interest.
  • If it was not clearly explained to you that you won't own the car unless you pay the balloon payment

Similar to PPI, the claim will be made against your lender. It is the lenders responsibility to make sure the car dealer has acted according to FCA regulations and standards.

You could be owed thousands, click 'Get Started' to begin your eligibilty check