Car finance claims
made simple

Why Millions of UK Consumers Are Claiming Car Finance Compensation

Picture this: In 2015, you walked into a car dealership excited about your new car. The salesman was friendly, professional—made everything feel easy. When it came to finance, he said "leave it to me, I'll get you sorted." Twenty minutes later, you had approval, affordable monthly payments, and drove off happy.

What you didn't know: that dealer had just earned anywhere from £500 to £3,000+ in hidden commission—by inflating your interest rate. The higher your rate, the more they made. And nobody told you this was happening.

This is the car finance claims scandal. Between 2007 and 2024, an estimated 14 million UK consumers were affected by these hidden commission arrangements. Financial regulators have called them "unfair," the Supreme Court has examined them, and now compensation is being paid.

What Actually Happened?

Here's the simple version of what went wrong:

Dealers acted as "credit brokers" - When they arranged your finance, they weren't doing you a favor. They were earning commission from lenders like Close Brothers, Black Horse, Santander, and dozens more.

Commission was discretionary - Instead of a flat fee, lenders used something called Discretionary Commission Arrangements (DCAs). The dealer could choose your interest rate from a range—say, 7% to 12%. Higher rate = higher commission.

You were never told - In most cases, consumers had no idea this arrangement existed. There might've been vague language in paperwork about "receiving fees," but nobody explained the dealer could inflate your rate to earn more money.

It created a conflict of interest - The dealer should've recommended the best rate for YOU. Instead, they had a financial incentive to recommend the highest rate they could justify. That's fundamentally unfair.

This Isn't a "Too Good to Be True" Scheme

You might be skeptical. Claims companies get a bad rap (sometimes deservedly). So let's be clear about what this is:

This is legitimate: The Financial Conduct Authority has acknowledged the issue and launched a redress scheme starting May 2026. The Supreme Court has examined these arrangements and found them problematic. This isn't some made-up claim—it's based on actual regulations and court rulings.

This affected millions: The FCA estimates up to 14 million consumers were impacted. Car finance was everywhere between 2007-2024, and DCAs were industry standard. If you had dealer-arranged finance during this period, you're statistically very likely to have been affected.

You have rights: Under the Consumer Credit Act 1974, you're entitled to be treated fairly and given adequate information about commission arrangements. If that didn't happen, you can claim compensation—whether you use our service or claim yourself.

Real Claims, Real Compensation (Anonymized)

Let's look at some real cases handled by our solicitor partners. Names and details have been changed to protect privacy, but these are genuine examples:

Notice a pattern? None of these people thought they'd been mis-sold until they checked. Their payments seemed reasonable at the time. But "reasonable" and "fair" aren't the same thing—and that's what these claims are about.