Car Finance Mis-Selling Scandal: Could You Be Owed Hundreds?
2025-08-04
Sky News
- Major Compensation Opportunity: Millions of drivers could be entitled to compensation following a landmark review into car finance agreements.
- Martin Lewis's Warning: MoneySavingExpert founder Martin Lewis estimates up to 40% of drivers who took out car finance between 2007 and 2021 may be due redress.
- Potential Payouts: While payouts are unlikely to reach thousands, many drivers could receive hundreds of pounds in compensation.
- What Triggered the Review? The Financial Conduct Authority (FCA) launched a review following concerns about discretionary commission arrangements (DCAs) used by car finance brokers.
- Understanding Discretionary Commission Arrangements: DCAs allowed brokers to accept payments from car finance companies, potentially incentivizing them to push more expensive deals on customers.
- How the Review Found Widespread Mis-Selling: The FCA's review concluded that widespread mis-selling occurred, with brokers not always properly disclosing these commissions to consumers.
- Who Is Eligible? If you took out a car finance agreement between 2007 and 2021 and believe you were not fully informed about any commissions paid to the broker, you may be eligible for compensation.
- How to Claim:
- Check Your Eligibility: Review your finance agreement and consider whether you were fully informed about any broker commissions.
- Contact Your Finance Provider: Start by contacting your car finance provider to inquire about potential compensation.
- MoneySavingExpert Resources: MoneySavingExpert.com has a dedicated guide and tools to help you assess your eligibility and navigate the claims process.
- Deadline for Claims: While a specific deadline hasn't been set yet, it's crucial to act promptly. The FCA is expected to announce a claims window soon.
- What to Expect: Compensation will likely be based on the difference between what you paid under the mis-sold agreement and what you would have paid had you been fully informed about the commissions.
