What was actually mis-sold
Before 2021, many dealers earned undisclosed commissions from the lender — sometimes as a percentage of the interest rate they arranged. The higher the APR they got you to accept, the more they were paid. Because that commission wasn't disclosed, the ruling is that you couldn't have given informed consent to the deal.
How to check if you're affected
If you had a car finance agreement between April 2007 and January 2021 — whether HP, PCP, personal loan or lease — you may be eligible. It doesn't matter if you've since paid it off or handed the car back.
The process
1. Contact the original lender in writing and ask for details of any commission paid to the dealer.
2. If you don't get a satisfactory response within 8 weeks, escalate to the Financial Ombudsman Service (free).
3. Don't pay a claims-management company — they typically take 25-40% of any compensation. You can do this yourself.
Realistic compensation ranges
It depends heavily on the deal, but early Ombudsman decisions have ordered refunds of £2,000-£4,000 per agreement on typical mid-2010s PCPs. Larger loans and higher APRs attract larger refunds.
