Mis-Sold Car Finance Claims

Millions of drivers across the UK may have been affected by mis-sold car finance agreements, where key information about commissions or costs was not properly disclosed. The Financial Conduct Authority (FCA) is now investigating these practices, and a redress scheme is expected to compensate those impacted between April 2007 and November 2024.

At Lansdowne Law, we specialise in financial mis-selling claims and have significant expertise in handling complex car finance cases. Our solicitors provide clear, practical advice to help clients understand their rights, assess eligibility, and recover compensation where mis-selling has occurred.

Understanding Mis-Sold Car Finance
When taking out car finance, you should have been given clear and honest information about how your agreement worked including any commission paid to the dealer or broker by the lender.

Unfortunately, many customers were left unaware that brokers could adjust interest rates to increase their own commission, often resulting in higher costs for the borrower.
If key details were withheld or misrepresented, the agreement could amount to financial mis-selling giving you grounds to seek redress.

What Is the FCA Redress Scheme?
The Financial Conduct Authority is currently consulting on a formal compensation scheme for consumers who were mis-sold motor finance agreements.
The proposed scheme will apply to finance arrangements where commissions were undisclosed or unfair, with the consultation open until 11 November 2025.
Once the scheme is launched expected in 2026 millions of consumers may be eligible for compensation if they were affected by these practices.

Have You Been Mis-Sold Car Finance?
You may have been mis-sold if:
• You took out a car finance agreement before November 2024;
• A commission arrangement existed between your lender and the broker;
• You were unaware that a commission was being paid or how it affected the interest rate; or
• You felt pressured into accepting the deal without full transparency.
If any of the above apply, our team can review your circumstances and confirm whether you have a valid claim.

Common Types of Car Finance Agreements
Personal Contract Purchase (PCP)
Under a PCP, you pay a deposit and monthly instalments for an agreed period. At the end of the term, you can return the car, pay a final lump sum (the balloon payment) to own it, or use the car’s value towards a new one.
Hire Purchase (HP)
With an HP agreement, you pay a deposit followed by fixed monthly payments until the full cost of the vehicle is covered. Ownership of the car transfers to you once the final payment is made.
Both types of agreements have been affected by mis-selling practices where commissions were hidden or the financial implications not properly explained.

What Can You Claim?
If your car finance was mis-sold, you may be able to recover:
• The interest and fees you paid on the agreement;
• Additional costs resulting from inflated interest rates; and
• Compensation for any financial loss or unfair treatment.
In some cases, this could amount to thousands of pounds in compensation.

How We Can Help
At Lansdowne Law, our experienced financial mis-selling solicitors have an in-depth understanding of the FCA’s findings and the upcoming redress process. We can assess your agreement, handle the claim on your behalf and ensure your case is presented effectively to maximise your chance of success.
We operate on a No Win, No Fee basis which means you pay nothing upfront. If your claim is successful, we take a pre-agreed percentage as our fee; if not, you won’t owe us anything.
Our team will:
• Review your car finance agreement and commission details;
• Advise whether you’re eligible to claim compensation; and
• Manage the full process from start to finish, ensuring your rights are protected.

Next Steps
If you believe you were mis-sold car finance, now is the time to act. Contact our Financial Mis-Selling team to discuss your case in confidence.
Our solicitors will guide you through the process, explain your options, and help you recover what you are rightfully owed.
Get in touch with the experts at Lansdowne Law today to find out if you could be entitled to compensation for a mis-sold car finance agreement.