The Financial Conduct Authority (FCA) have said that commission was paid on 95% of UK Car finance agreements. If you weren’t told the exact amount of commission paid then you may have a claim. We can investigate whether you have a claim on a no win, no fee basis.
Have you ever bought a car on finance? If yes, it’s quite possible you were mis-sold. An investigation by the Financial Conduct Authority has found evidence of widespread mis-selling across all types of car financing options. Unbeknown to customers, some car retailers received commission from lenders which was often linked to the interest rate customers were charged. Given that car retailers can set the interest rate, this created an incentive for them to sell more expensive credit – acting against their customers’ best interests.
The Financial Conduct Authority investigated the motor industry and ruled that the way lenders chose to reward their brokers was harmful to customers who ended up paying more for their car finance. The use of ‘discretionary commission’, whereby the dealer doesn’t have to disclose what kickbacks they receive from the lender, has now been banned. However, it’s worth noting the FCA’s ban doesn’t prohibit commission itself. The difference now is that it must be disclosed, at least making it more transparent. However, the British public have unwittingly been paying secret commission, within their car finance deals, for years.
This depends on the amount of finance taken, the interest rate applied, the commission model used and the length of the repayment term. However, it’s likely to run into hundreds or thousands of pounds. If you have a copy of your car finance policy to hand then we can review this and make the necessary checks to see if your repayments included secret commission, paid to the broker, for arranging the finance.
If you bought a car on any type of finance, then it’s quite possible you have a claim. The quickest and simplest way to know if you have a mis-sold car finance claim is for us to review your car finance agreement and then check if ‘secret’ commission was paid to the car dealer / finance broker for arranging the credit agreement. However, ask yourself:
If you’re unsure then it’s likely you didn’t receive the best advice and were therefore mis-sold. That was certainly the outcome of a mystery shopping exercise, undertaken by the Financial Conduct Authority, which found that:
Send us a copy of your car finance agreement, which we will treat in confidence (see our Privacy Policy). We’ll then review this and advise you if you have a claim.
Please note: if you don’t have a copy of your car finance agreement then just let us know the name of the lender and dealership and we’ll request a copy.
If we accept your case, and you instruct us to act on your behalf, we’ll make a claim against the lender
If we can demonstrate you were mis-sold car finance, then we’ll recover compensation for you.
No. We work on a no, win no fee basis. If successful we’ll deduct 25% from any compensation awarded. If for any reason we’re unsuccessful, you won’t pay a penny. Unsure? Why not get in touch for some free, expert, initial legal advice. We’re experienced mis-sold car finance solicitors and can guide you through the claims process.
To get the ball rolling, just fill out our short questionnaire. Don’t worry if you don’t have all the information to hand, just fill out as much as you can.
We are experts in civil litigation with an experienced team specialising in financial mis-selling claims, including secret commission claims. If you’re looking for dedicated mis-sold car finance solicitors, then we can help. We believe in people before profits and for too long people have been mis-sold financial products, including those containing secret commission, which subsequently create unfair relationships between consumers, brokers and lenders. We’re therefore committed to getting car finance customers compensation and ensure they get the redress they deserve.
