Couple Choosing And Buying Car At Car Showroom

Car Finance Mis-Selling Claims

Get compensation if your car finance agreement was mis-sold 

Most new cars in the United Kingdom – and a significant number of used cars – are sold on finance agreements. 

If the interest rate on your car finance agreement was artificially inflated by your car dealer, salesperson, or another party like a broker or intermediary, you could be entitled to compensation. 

While you were enjoying driving away from the dealership with a brand new car every few years, whoever sold you the car was enjoying extra commission from inflating your interest rate without telling you. 

You won’t know if this happened to you, but we can help you find out. And if it did, we’ll help you get your money back. 

What is the potential scale of car finance mis-selling?

  • 90% of all new car finance agreements use Personal Contract Purchase (PCP)
  • 95% of all car finance deals were sold with commission models
  • 40% of deals before 2021 thought to have interest inflation

Get your money back from car finance mis-selling

While you might have thought you were getting a great deal at the time, the truth is that you may have overpaid thousands of pounds in payments when you could have gotten a better interest rate.

It’s these overpayments that we’ll look to reclaim for you.

Depending on the car you bought, the amount of financing you needed, and the extent to which your interest rate was artificially inflated, you could end up having overpaid a significant sum through no fault of your own.

We can help you claim compensation on both existing and previous car financing agreements. If you’ve long driven cars using finance, you could be due even more!

Why bring a claim with LawPlus Solicitors?

  • No win, no fee
  • Millions of pounds recovered for victims of financial mis-selling
  • Claim for current or past vehicles
  • Stress and hassle-free claims process from start to finish

How did car finance mis-selling happen?

When arranging your finance agreement, the car dealer or salesperson, or another party acting as a broker or intermediary, may have earned commission when you signed your agreement.

In some cases, even if these parties disclosed they earned a commission, they probably didn’t disclose that they had offered you a higher interest rate than you could have gotten. Not only did this higher rate mean you paid more than you should have done, but it earned the other party a higher commission payment, too.

It’s unlikely you would have agreed to pay a higher interest rate and increase your payments voluntarily, and you may have assumed the rate you were told was essentially “take it or leave it.”

All this adds up to your car finance agreement being mis-sold. If you’re concerned this has happened to you, start your no-win, no-fee claim now.

How will you investigate my claim?

First, we’ll conduct a free, no-obligation, soft credit search to identify any car finance agreements you have had in the last six years.

If we believe you may be due compensation, you can instruct us to bring a claim against your lender on your behalf.

I had car finance more than six years ago

We may still be able to help you.

If you still have all your documents from previous car finance agreements, get in touch with us and our team of friendly mis-selling specialists will conduct a free, no-obligation check to see if compensation may be due.

Contact LawPlus Solicitors today to get started

The Financial Conduct Authority has said that car finance mis-selling has the potential to be “the new PPI.”

You won’t know you were mis-sold, so make sure to take advantage of our free, no-obligation car finance check. You have nothing to lose and potentially thousands of pounds to gain!

Get in touch with us now to take the first step in putting things right and getting your money back.

Car Finance Mis-Selling FAQs

As with most types of financial mis-selling, you probably won’t know until a company or individual checks and tells you, or the company or individual who did it admits it.

At LawPlus Solicitors, we have you covered. Simply enter your details into our form, and we’ll do the rest.

The basis of our car finance mis-selling claims are undisclosed commissions. More specifically, that the car dealer or salesperson artificially increased the interest rate on your car finance agreement to increase their own commission, leaving you overpaying interest without your knowledge.

Discretionary commission arrangements (DCAs), which allowed car dealers and salespeople to do this, were banned in 2021. However, mis-selling may still have occurred before this date if the interest rate on your car finance deal was artificially increased without your knowledge. And it may be the case that the practice is still happening, too.

We are earning an average compensation award of £1,500 per car finance agreement for our clients.

The compensation you receive following a successful claim will depend on several factors, including the level of financing needed to fund your vehicle, and the extent to which the car dealer or salesperson artificially increased the interest rate on your agreement.

Fill in your details with us to discover if you may have the basis for a mis-sold car finance claim.

If we believe your car finance may have been mis-sold, you are under no obligation to proceed with LawPlus Solicitors and can undertake a claim via another route if you wish. If you proceed with ourselves, we will work on a no-win, no-fee basis on your behalf.

Yes. If you have kept your paperwork from previous car finance deals you have had dating back to 2007, when the Financial Ombudsman Service (FOS) took over jurisdiction of motor finance complaints, we may be able to help you. Get in touch with us at enquiries@lawplus.co.uk to get started.

If you don’t have physical paperwork, you may have had access to an online finance portal where your documents were stored and where you can retrieve them.