Car Finance Claims
Undisclosed Commission
Why might I have a claim?
If you used finance to buy a car , motorbike or van between 6 April 2007, and 1 November 2024 and some or all of the points below apply, you may have a claim:
Your dealer set the interest rate to earn more commission (using a discretionary commission arrangement).
The commission was high – at least 39% of the total cost of credit and 10% of the loan.
Your dealer was “tied” to one lender for most of the finance it arranged, except where lenders can evidence that there were visible links with a dealer, i.e.: a similar name.
The Background
In January 2024, the Financial Conduct Authority (FCA) launched a review into whether consumers had been overcharged due to historical discretionary commission arrangements, which allowed dealers to adjust interest rates and had been banned in 2021.
At the same time, the FCA temporarily paused the requirement for lenders to respond to complaints about discretionary commission arrangements, due both to its review and ongoing court proceedings. This pause was later extended to cover complaints about non-discretionary, or fixed-fee, commission arrangements and extended until 31 May 2026.
In August 2025, the Supreme Court issued an important ruling in Johnson v FirstRand Bank. The Court confirmed that while commission payments in car finance are not unlawful in themselves, high commissions that were not properly explained to customers can create what the law calls an “unfair relationship” under the Consumer Credit Act 1974.
Following this ruling, on 7 October 2025, the Financial Conduct Authority (FCA) published a paper consulting and requesting feedback on a potential motor finance compensation scheme.
On 30 March 2026, the FCA launched a compensation scheme for car finance customers who were treated unfairly by lenders. The FCA expects 12.1 million agreements to be eligible, with an average payout of £830* per agreement. Millions of people will be compensated by the end of 2026.
How can I claim?
Click the button below to start your claim today and see if you could claim back £100s
