Mon, 04 Aug 2025

Mon, 04 Aug 2025 Could I get car finance compensation?

A court ruling could lead to millions claiming compensation over being mis-sold car finance deals.

* If you used car finance to buy a vehicle in the last 18 years, you may be eligible for compensation due to a recent court ruling on hidden commissions.
* The key is whether customers were treated "fairly", although the regulator, the Financial Conduct Authority (FCA), is still working on exactly what that will mean.
* One specific group of buyers who are likely to be eligible are people who took out car loans with discretionary commission arrangements (DCAs) prior to 2021.
* To check if you're eligible, review your contract and look for terms and conditions related to commission payments.
* The Supreme Court has set a precedent in a test case involving Marcus Johnson, who was overcharged on his interest payments due to commission.
* If you have not read the terms and conditions of your contract or were pressured into signing, you may be eligible for compensation.
* Do not sign up with claims companies as they will charge a fee and it won't speed up the process.
* The FCA is setting up a compensation scheme, which will launch in October with a six-week consultation period. Payments are expected to start in 2026.
* You can write to your lender to establish the facts of your case or wait for the FCA's scheme to be available.
* It is likely that most claims will be under £950 and anyone who has taken out several car finance deals may be entitled to multiple payouts.
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