Thousands of UK motorists may be entitled to compensation after a major scandal involving hidden commissions in car finance deals has come to light. The Financial Conduct Authority (FCA) is currently investigating claims that lenders and brokers failed to disclose hefty commissions, leaving customers paying more than they should have.
What’s the scandal about?
The issue centres around Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, where brokers and lenders allegedly received secret commissions for arranging finance deals. These hidden fees were often not disclosed to customers, meaning many paid inflated interest rates without realising.
Who could be affected?
If you took out car finance between 2014 and 2019, you might be eligible to claim. The FCA estimates that millions of deals during this period could have involved undisclosed commissions.
How to check if you’re owed money
- Dig out your old finance agreements
- Look for any mention of broker or lender commissions
- Check if the commission amount was clearly stated
- If in doubt, contact the Financial Ombudsman Service
What happens next?
The FCA is expected to announce its findings later this year, which could lead to a wave of compensation claims. Some experts predict the total payout could run into billions of pounds.
Important: Be wary of claims management companies charging upfront fees. You can make a claim yourself for free through the official channels.
