Car Finance Commission Claims: Are You Owed Compensation for Hidden Commissions?
If you purchased a car, van, or motorbike using finance in the UK, you might be one of millions affected by
hidden car finance commission charges or unfair commission practices. A widespread industry issue means that many car dealers and finance brokers were paid commissions that were not clearly disclosed to customers, potentially leading to you paying more than you should have for your
PCP commission claims or
HP commission claims.
Allegiant Finance Services is here to help you understand if you have a valid
car finance commission claim and guide you through the process of seeking the
car finance refund commission you deserve.
Recent investigations by the
Financial Conduct Authority (FCA) concerning
FCA car finance commission reviews and landmark court rulings have brought the issue of
undisclosed car finance commission to the forefront. It has become apparent that certain commission structures, particularly Discretionary Commission Arrangements (DCAs), may have incentivised dealers to charge higher interest rates, directly impacting the cost of your finance agreement. Even if your agreement didn’t involve a DCA, other forms of non-discretionary commission may not have been properly disclosed, potentially giving you grounds to
claim car finance commission UK.
The Car Finance Commission Scandal Explained: Understanding Secret Car Finance Commission
For years, it was common practice for lenders to pay commissions to car dealers or brokers who arranged finance agreements for customers. While commission itself isn”t necessarily unfair, the way some of these commissions were structured and disclosed (or not disclosed) is now under scrutiny. The core of the car finance mis-selling commission scandal revolves around two main types of commission arrangements:
- Discretionary Commission Arrangements (DCAs): Under a DCA, the car dealer or broker had the discretion to set or adjust the interest rate offered to the customer. The higher the interest rate, the more commission they typically earned from the lender. The FCA banned DCAs in January 2021, recognising that this model created a conflict of interest and could lead to customers being charged excessive interest rates. If you believe you were affected, you might be looking into DCA claims.
- Non-Discretionary Commission Arrangements: These include fixed-rate commissions (a set percentage of the loan amount) or flat fees paid to the dealer/broker for each finance agreement arranged. While not inherently problematic like DCAs, issues can arise if these commissions were not clearly disclosed to you, meaning you couldn’t make a fully informed decision about your finance agreement. This is another avenue for potential non-discretionary car finance commission claims.
The FCA is currently conducting a major review into historical DCA practices (see more on the
FCA’s website ) and has indicated that if widespread misconduct is found, they will work to ensure consumers receive compensation. Furthermore, a significant
Court of Appeal ruling in October 2024 (in the cases of Johnson and others) established that it was unlawful for brokers to receive commission from a lender without the customer’s informed consent. This ruling is currently subject to an appeal in the Supreme Court (expected to be heard in 2025), but it has broadened the potential scope for claims beyond just DCAs, impacting how to
reclaim car finance commission.
Understanding Your Legal Position: DCA vs. Non-Discretionary Commission in Car Finance Claims
The legal landscape surrounding car finance commission claims is evolving, but here’s a summary of the current position:
- DCA Claims: If your car finance agreement was taken out before 28 January 2021 and involved a Discretionary Commission Arrangement, you may have a strong basis for a DCA claim. The FCA’s ban and ongoing review highlight the regulatory concerns with these arrangements. The key issue is that the dealer’s ability to set your interest rate to increase their commission was not fair to you.
- Non-Discretionary Commission Claims: Even if your agreement did not involve a DCA, you might still have a claim if other types of commission (like fixed or flat fees) were not clearly disclosed to you. The principle of ‘informed consent’ is crucial here. If you weren’t made aware of the commission being paid, you were arguably unable to make a fully informed decision about the finance product, forming the basis for car finance compensation related to commission. Learn more about non-discretionary commission claims here.
The
Financial Ombudsman Service (FOS) , often involved in
car finance ombudsman commission disputes, is handling a large number of complaints related to car finance commission. The FCA has put
temporary rules in place , giving financial firms until December 2025 to respond to these complaints, and consumers generally have until July 2026 to escalate their complaint to the FOS if they are unhappy with the firm’s response. This indicates the scale of the issue and the regulator”s commitment to addressing it.
How Allegiant Can Help with Your Car Finance Commission Claim in the UK
At Allegiant Finance Services, we understand that navigating the complexities of
car finance commission claims can be daunting. We are an
FCA-regulated claims management company (Firm Reference Number: 836810) with extensive experience in helping UK consumers reclaim what they are rightfully owed. We can help you with all types of
car finance commission claims, whether they involve Discretionary Commission Arrangements or issues with the disclosure of non-discretionary commissions. If you need
secret car finance commission help, we are here for you.
Our dedicated team will:
- Review Your Case: We will carefully assess your car finance agreement and the circumstances surrounding it to determine if you may have been affected by unfair or undisclosed car finance commission.
- Gather Evidence: We will help you gather the necessary documentation and information to support your claim car finance commission UK.
- Manage Your Claim: We will handle the entire claims process on your behalf, liaising with the lender or broker, and if necessary, escalating your case to the Financial Ombudsman Service .
- Keep You Informed: We believe in clear and transparent communication, providing you with regular updates on the progress of your car finance commission claim.
It’s important to know that you can also make a complaint directly to the lender or broker yourself, and if you’re not satisfied with their response, you can take your case to the Financial Ombudsman Service for free. If you choose to use our services, we operate on a no-win, no-fee basis for many of our services, meaning you only pay a fee if your claim is successful (terms and conditions apply and will be clearly explained to you). This is a common approach for no win no fee car finance commission claims.
Are You Ready to Find Out if You Can Claim Car Finance Commission?
If you suspect you may have been overcharged due to hidden car finance commission or unfair practices, don’t delay. The ongoing FCA car finance commission review and legal developments mean now is a crucial time to explore your options. Knowing how to claim for car finance hidden commission can be complex, but we simplify it.
Contact Allegiant Finance Services today for a free, no-obligation assessment of your potential car finance commission claim. Let us help you understand your rights and work towards securing the car finance refund commission you could be due. If you”re asking, “Was I mis-sold car finance due to commission?” or need to “check if I can claim car finance commission,” we can provide clarity and support. For specific legal advice, you may need to consult a solicitor, but we can guide you through the claims management process.
Disclaimer: This page provides general information about car finance commission claims. It does not constitute financial or legal advice. The outcome of any claim is subject to the specific circumstances of your case and the decisions of lenders, the Financial Ombudsman Service, or the courts. Allegiant Finance Services Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 836810. You can check this on the FCA’s Register ).
