Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
If you purchased a car, van, or motorbike using finance in the UK between April 2007 and January 2021, you could be entitled to significant car finance redress through a car finance claim. Recent FCA investigations [1] reveal that millions of consumers were overcharged, with the FCA estimating the average overpayment at about £1,100 [2], meaning you could be owed substantial compensation for hidden commission charges and unfair practices that cost you thousands.
The car finance industry has been rocked by revelations of systematic mis-selling that has cost UK consumers millions. Recent investigations by the Financial Conduct Authority (FCA) [1] and landmark court rulings [4] have exposed how car dealers and finance brokers were paid secret commissions that were never disclosed to customers, leading to inflated interest rates and thousands of pounds in overcharges.
The numbers are staggering:
Investment bank Jefferies estimates the bill for the finance sector could be as high as £13bn [6], while some analysts suggest the scandal could cost lenders from £30bn to £44bn, with concerns that it could be on the scale of the £50bn payment protection insurance (PPI) scandal [3].
This widespread misconduct means you likely have grounds for a car finance claim seeking substantial car finance redress.
Your car finance claim can be based on two main types of commission arrangements that may entitle you to car finance redress:
Under DCAs (banned in January 2021 [8]), car dealers could adjust your interest rate to increase their commission payments. The higher your rate, the more they earned, creating a direct conflict of interest that led to customers paying excessive charges.
The FCA estimates around 40% of car finance deals had such arrangements until they were banned [2]. If your agreement was before January 28, 2021, you likely have a strong car finance claim for DCA-related car finance redress.
Even without DCAs, dealers received fixed commissions or flat fees that were rarely disclosed. If you weren’t told about these payments, you couldn’t make an informed decision, giving you grounds for a car finance claim seeking car finance redress.
A pivotal Court of Appeal ruling in October 2024 [7] established that undisclosed broker commissions are unlawful without informed customer consent, significantly expanding the scope for car finance claims beyond just DCAs.
You may be entitled to car finance redress through a car finance claim if:
✅ Your agreement was between April 2007 – January 28, 2021
✅ You used PCP (Personal Contract Purchase) or HP (Hire Purchase) finance
✅ You were not fully informed about dealer commissions
✅ Your interest rate seemed higher than expected
✅ Sales tactics felt pressured or rushed
✅ Finance options weren’t properly explained
✅ Affordability checks seemed inadequate
Important: You can claim for multiple vehicles, completed agreements, active agreements, and even repossessed vehicles.
The amount of car finance redress from your car finance claim depends on several factors:
Typical car finance claim payouts:
Factors affecting your car finance redress:
Unlike many newcomers to car finance claims, Allegiant is an established FCA-regulated claims management company [9] (Firm Reference Number: 836810) with extensive experience in securing car finance redress for UK consumers.
The regulatory environment strongly supports consumers seeking car finance redress:
FCA Investigation Ongoing: The FCA’s comprehensive review [1] into DCA practices continues, with the FCA confirming it will likely consult on a redress scheme if motor finance customers have lost out from widespread failings [1].
Extended Deadlines: New rules [7] give firms until December 2025 to respond to car finance claims, and consumers until July 2026 to escalate complaints if unsatisfied [5].
Court Precedent: Recent Court of Appeal rulings [7] have established strong legal grounds for car finance claims, particularly around the principle of ‘informed consent’ for commission payments.
Don’t delay your car finance claim. You generally have:
With millions of consumers potentially affected [1] and deadlines approaching, it’s crucial to start your car finance claim as soon as possible to secure your car finance redress.
Don’t let hidden commissions and unfair practices cost you thousands. If you financed a vehicle between 2007-2021, you likely have grounds for a car finance claim that could result in substantial car finance redress.
Why choose professional help for your car finance claim?
The car finance industry profited from unfair practices for years. Now it’s your turn to claim back what you’re rightfully owed through a car finance claim.
Contact Allegiant today to start your journey toward the car finance redress you deserve. With our expertise, FCA regulation, and no win, no fee guarantee, you have nothing to lose and thousands to gain.
Allegiant is authorised and regulated by the Financial Conduct Authority [9] (FRN: 836810). Our no win, no fee terms mean you only pay if your car finance claim is successful and you receive car finance redress. Full terms and conditions will be clearly explained before proceeding with your car finance claim. All compensation figures quoted are based on FCA research and industry data [2]. Individual results may vary.
[1] https://www.fca.org.uk/news/statements/motor-finance-review-next-steps
[2] https://www.legalfutures.co.uk/latest-news/solicitors-hit-out-at-fca-over-car-finance-mis-selling-delay
[3] https://uk.finance.yahoo.com/news/car-finance-scandal-fca-compensation-060010984.html
[4] https://cardealermagazine.co.uk/publish/martin-lewis-says-car-finance-scandal-could-double-in-size-as-fca-extends-scope-of-investigation/309947
[5] https://www.fca.org.uk/news/statements/update-motor-finance-work
[6] https://cardealermagazine.co.uk/publish/some-car-finance-companies-almost-certainly-guilty-of-commission-failings-says-fca/299264
[7] https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
[8] https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/
[9] https://register.fca.org.uk/s/firm?id=0010X00004MND0QQAX
[10] https://www.financial-ombudsman.org.uk
[11] https://www.legislation.gov.uk/ukpga/1980/58/section/5
[12] https://www.legislation.gov.uk/ukpga/1980/58/section/14A
Ex FOS.
Learn more about Discretionary Commission Arrangement Claims here
DCA Claims: Do You Have a Discretionary Commission Arrangement Claim?
Learn more about Non Discrestionary Commission Arrangements here
Non-Discretionary Car Finance Commission Claims: Were You Fully Informed?
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Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
