Ford Credit Europe (FCE) has set aside £61 million to cover potential claims for mis-sold car finance. This follows a major court ruling on undisclosed commissions in motor finance deals. If you’ve financed a used car before 2018 through a dealership, you could be eligible for compensation.
Ford Credit Europe Sets Aside £61m Over Mis-Sold Car Finance
Ford Credit Europe (FCE), the finance arm of Ford in the UK and Europe, recently made headlines by announcing a £61 million provision to cover possible payouts linked to mis-sold car finance deals. This significant move follows a string of similar announcements from major lenders such as Lloyds Banking Group and Santander UK.
So, what’s going on? And more importantly, could you be owed money?
Let’s break it down.
What’s Behind the £61m Provision?
This all started with a major legal development involving Discretionary Commission Arrangements (DCAs). These are deals where car dealers could adjust interest rates on finance agreements—and earn more commission by charging you more.
The Court of Appeal ruled that failing to clearly explain these commission arrangements to customers could be considered unlawful. In other words, you might have agreed to pay higher interest without knowing the dealer was making extra money from it.
Although FCE bank pcp claim stopped using DCAs in 2018, they’ve acknowledged that many agreements before that time could fall under scrutiny. That’s why they’ve now set aside £61 million to prepare for possible refunds.
A final decision from the Supreme Court is expected in July 2025, and the Financial Conduct Authority (FCA) has stated that if the Court upholds the ruling, they may introduce a formal redress scheme within six weeks.
Why Is This a Big Deal?
It’s not just FCE. This legal development could affect nearly all UK motor finance lenders who used similar commission structures. Here’s what’s happened so far:
- Lloyds Banking Group has set aside £1.15 billion.
- Santander UK reserved £295 million.
- Close Brothers expects around £200 million in expenses.
This reflects the potential scale of mis-selling in the motor finance market, particularly with used car loans where DCAs were commonly used. FCE alone has over 436,000 retail customers across the UK and Europe.
The FCA’s ongoing investigation and Supreme Court decision could open the floodgates for claims.
What Are Discretionary Commission Arrangements?
Let’s simplify this:
- In a DCA, a dealer could adjust the interest rate on your car finance deal.
- The higher the rate, the more commission they’d earn.
- The problem? Most customers weren’t told how this worked.
This lack of transparency and disclosure means many people paid more than necessary—without understanding why.
How Much Compensation Can You Claim?
The amount of compensation depends on how much you borrowed and how much extra interest you paid due to the undisclosed commission.
Here’s a general idea:
| Original Loan Amount | Potential Compensation |
|---|---|
| £5,000 | £800–£1,200 |
| £10,000 | £1,500–£2,500 |
| £15,000+ | £2,500–£4,000+ |
Claims can also include interest and other charges.
According to financial experts, many consumers could see payouts similar to those from the PPI scandal—especially if a redress scheme is introduced.
Mis-sold Car Finance Claims Checker
Our mis-sold car finance claims calculator below estimates the level of compensation you may be able to reclaim for a mis-sold car finance agreement.
Add the value of your vehicle, the length of your agreement, and the interest rate you paid to the calculator below. Then, compare this against a rate that you may have been offered if you weren’t mis-sold.
Free credit check
✅ No Win, No Fee*
✅ Takes under 2 mins to check
✅ Safe, secure & simple process
Disclaimer : The Mis-sold Car Finance Claims calculation is illustrative, and under no circumstances should it be used or relied upon in the pursuit of a claim. If you need more help and clear understanding.
*Please note: The PCP agreement covers the period from April 2007 to 28th January 2021.*
What Happens Next?
The next key milestone is the Supreme Court ruling, expected in July 2025. If the Court agrees with the Court of Appeal’s view, it will confirm that non-disclosure of commissions is unlawful across the board—not just with DCAs.
In that case, the FCA is likely to propose a statutory redress scheme within six weeks. This would simplify the claims process and could automatically apply to affected consumers.
Keep an eye on updates from the Financial Conduct Authority and national news sources like the Financial Times and BBC News.
How to Check If You’re Eligible
You might have a valid claim if:
- You took out a hire purchase or PCP deal before 2020.
- Your car finance agreement was arranged through a dealer.
- You weren’t told about the commission or how it worked.
- Your monthly repayments seemed higher than expected.
Even if you’re unsure, it’s worth getting a free check. National Claims can connect you with qualified solicitors who’ll review your agreement and advise you on your next steps.
Why Use National Claims?
✅ Free claim review – no upfront costs.
✅ Experienced solicitors – with knowledge of motor finance rules.
✅ Simple process – we’ll guide you through each step.
✅ Higher success rate – through expert legal representation.
At a time when the rules are changing fast, having a legal expert on your side can make all the difference.
People Also Ask
1. What is mis-sold car finance?
Mis-sold car finance usually involves customers being unaware of how dealer commissions affect their interest rate. If you were not told about this, your agreement may have been mis-sold.
2. Who can claim compensation for mis-sold car finance?
Anyone who took out car finance—especially a hire purchase or personal contract purchase (PCP)—before 2020 and wasn’t informed about dealer commissions could be eligible.
3. How much compensation could I receive?
It varies, but many claims can be worth £1,000–£3,000 or more, depending on your loan size and interest rate. Larger finance deals may lead to higher payouts.
4. Do I need a solicitor to make a claim?
While it’s possible to claim directly, working with a solicitor or claims management firm—like those connected via National Claims—can significantly improve your chances of success.
5. Has FCE admitted wrongdoing?
No. FCE hasn’t admitted liability but has taken a cautious approach by provisioning for potential costs in case the Supreme Court upholds the Court of Appeal’s judgment.
Final Thoughts
FCE’s £61 million provision is just the tip of the iceberg in what could become a massive financial scandal. With legal rulings and regulatory investigations moving quickly, now is the time to act.
Whether you financed a used car five or ten years ago, you could be owed thousands of pounds in compensation. But claims will likely be time-limited once the FCA announces next steps.
✅ Start Your Claim Today
If you think you were affected by mis-sold car finance, don’t wait for the industry to act. Take control of your rights.
Contact National Claims today, and we will put you in touch with an expert solicitor who can guide you through the claims process.
📞 Call us now free 0800 029 3849 or 📩 Submit an online enquiry to speak to our team. Your safety and well-being matter, and we’re here to help.
We’re proud of our excellent customer reviews
We thrive on delivering exceptional service and ensuring our clients’ satisfaction. Don’t just take our word for it. Check out some of our independent reviews to see what our clients have to say.
Excellent
This firm is excellent, they sorted out my car pay out and injury claim very fast, they always communicate with you all the time.
My accident case was dealt with confidence and with great result of the outcome, especially James kept me informed all the time.
I was very impressed at the way my inquiry was treated. I was listened to attentively and everything I needed to know was explained to me.
