Thousands of British motorists could be in line for substantial payouts following a major investigation into car finance deals. The Financial Conduct Authority (FCA) is examining whether hidden commissions in Personal Contract Purchase (PCP) agreements left drivers paying more than they should have.
What's the car finance scandal about?
Between 2014 and 2019, many dealerships and brokers received secret commissions for arranging finance deals - often without properly disclosing this to customers. These hidden payments may have led to borrowers paying inflated interest rates on their car finance agreements.
Who could be eligible for compensation?
You might have a claim if you:
- Took out car finance between 2014-2019
- Were unaware of commission arrangements
- Paid higher interest rates as a result
How much could you claim?
While amounts vary, successful claims could see borrowers receiving:
- Refunds of excess interest paid
- 8% statutory interest on top
- Average payouts estimated at £1,000-£3,000
What should affected drivers do now?
The FCA has paused the usual complaints process while it investigates, but experts recommend:
- Gathering your original finance paperwork
- Checking for commission disclosures
- Preparing to submit a complaint when the process reopens
Note: Beware of claims management companies charging upfront fees - you can complain directly to lenders for free when the time comes.
