Can you trust car dealers to calculate your car finance compensation fairly?
No. There’s a clear conflict of interest – the same dealers who mis-sold finance agreements may now be involved in compensation decisions. This risks underpayment or unfair outcomes. Consumers should seek independent support and avoid relying on claims handlers tied to the finance industry.
A Hidden Risk After Mis-Selling
If you’ve recently discovered that your car finance agreement may have been mis-sold, you’re not alone. Millions across the UK are affected. But here’s what’s worrying: the very people who mis-sold you could now play a role in deciding your payout. That’s not just unfair – it’s a conflict of interest that could cost you thousands.
In this article, we’ll explore why you shouldn’t trust car dealers to calculate your compensation, what to do instead, and how National Claims can help connect you with experienced solicitors to protect your claim.
The Problem with Dealer-Led Compensation
Following the car finance mis-selling scandal – involving Discretionary Commission Arrangements (DCAs) and undisclosed broker commissions – the Financial Conduct Authority (FCA) has stepped in to investigate and potentially introduce a redress scheme.
But there’s a catch:
If the scheme is “opt-out”, dealers and finance firms might be allowed to automatically process claims and set their own payout figures – without proper oversight.
So what’s wrong with that?
- Dealers have a financial motive to minimise compensation.
If they admit fault or pay large sums, it hurts their bottom line. - They’ve already acted unfairly once.
Many used hidden commission models to increase their own profits at your expense. - No independent regulation means no real accountability.
What the FCA Is Doing
The FCA launched an investigation in January 2024 into car finance mis-selling. Since then, over 2.5 million consumers have raised complaints, particularly around DCAs, where brokers increased interest rates secretly to boost commissions.
A Supreme Court ruling expected in July 2025 will determine the legal basis for compensation, particularly for Commission Disclosure complaints, which could affect up to 99% of car finance cases.
The FCA is considering an industry-wide redress scheme and has outlined principles like fairness, transparency, and simplicity.
But without strict guidelines, allowing the original sellers (dealers and brokers) to assess your claim opens the door to bias and lowball offers.
People Also Ask (PAA)
1. What is car finance mis-selling in the UK?
Car finance mis-selling occurs when brokers or dealers fail to disclose commission details or use tactics like DCAs to charge consumers higher interest without their knowledge.
2. Can I trust my car dealer to handle my compensation?
No. There’s a serious conflict of interest – dealers may have profited from mis-selling and now have a financial reason to minimise your payout.
3. Do I need a claims firm to make a car finance complaint?
Not necessarily. The FCA has stated you don’t need to use a claims firm. However, working with an independent solicitor can help you get a fair payout.
4. What is the FCA doing about car finance mis-selling?
The FCA is currently investigating and considering a redress scheme. They’re waiting on a Supreme Court decision before announcing the next steps.
5. Should I wait before making a claim?
It’s wise to stay informed and avoid claims firms charging upfront fees. But starting your claim with professional support can help preserve your right to compensation.
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.
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.*
How Much Compensation Can You Claim?
The amount you could receive depends on:
- How much you borrowed
- The interest rate charged
- How much commission was hidden
- Whether your agreement was affected by a DCA or non-disclosed commission
While there’s no exact figure yet, estimates suggest consumers could be owed anywhere from £1,000 to £10,000+, depending on the length and terms of their finance agreement.
A fair compensation package should include:
- Refund of overpaid interest
- Return of unfair commission
- Compensatory interest
- Potential credit score correction
👉 At National Claims, we help connect clients with trusted solicitors who fight for the full amount you deserve – not what the dealer thinks you should get.
Why Independent Advice Matters
Letting car dealers or finance firms handle your complaint puts you at a disadvantage. Here’s why you should always get independent legal advice:
- You may be undercompensated if you rely on the firm that mis-sold you.
- Claims firms may charge high fees – often up to 30% of your payout.
- Solicitors understand the law and your rights under UK finance and consumer protection legislation.
- Your claim is handled professionally and fairly with expert oversight.
What Happens Next?
- July 2025: Supreme Court decision on Commission Disclosure.
- August–September 2025: FCA expected to announce whether a redress scheme will go ahead.
- Until December 2025: Complaint responses paused for commission-based car finance claims.
The FCA has warned that you do not need a claims management company, and that any future redress process will be simple and accessible. However, until that’s confirmed, acting independently and wisely is key.
Final Thoughts: Protect Your Rights
Let’s be clear: You wouldn’t let a shoplifter set their own fine. So why trust a car dealer who profited from mis-selling to calculate your refund?
If you’ve been mis-sold car finance, don’t risk losing out by relying on the same firms that caused the problem. Stay informed, avoid high-fee claims firms, and get proper legal support.
💬 Ready to Take the Next Step?
National Claims can help you connect with specialist solicitors who’ll handle your claim fairly and push for the maximum compensation you deserve.
👉 Start your free claim assessment today.
👉 Or contact our team to learn more about your rights and next steps.
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.
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