If you took out a car finance agreement such as PCP or HP between 2007 and 2020, you may have been mis-sold car finance without even knowing it. Signs include not being told about commission, unclear terms, or being pressured into a deal. You could claim thousands in compensation. National Claims can connect you with experienced solicitors to help you start your claim today.
What Is Car Finance Mis-Selling?
Car finance mis-selling happens when a dealership or broker fails to fully explain the costs, terms, or commission tied to your car finance agreement. This often involves:
- Hidden commissions: You weren’t told that the salesperson earned a commission, especially if it influenced the interest rate.
- Lack of transparency: The total cost of your finance deal wasn’t made clear.
- Pressure selling: You were rushed or pushed into accepting the finance without being given alternative options.
- Poor affordability checks: You were approved for car finance even if you couldn’t realistically afford it.
The FCA Crackdown: Why It Matters
In January 2021, the FCA banned the use of discretionary commission models — deals where brokers earned more commission by increasing your interest rate. This followed an investigation revealing that many customers were unknowingly charged higher interest rates so that dealers could pocket bigger profits.
As of January 2024, the FCA is also investigating historic complaints and compensation claims.
Read more on GOV.UK.
How Much Compensation Can You Claim?
Wondering how much compensation for mis-sold car finance you could receive? It depends on:
- How much you borrowed
- How much commission was hidden
- Interest overpayments
- Any additional fees or penalties
In general, average payouts range from £1,000 to £5,000, but some high-interest cases have exceeded £10,000.
For example:
| Type of Mis-Selling | Average Compensation |
|---|---|
| Hidden commission (PCP) | £1,500 – £3,500 |
| Misleading agreement | £1,000 – £2,500 |
| Overpaid interest | £2,000 – £10,000+ |
People Also Ask
Q1.❓ How do I know if I was mis-sold car finance?
Check if your finance agreement had hidden commissions, high-interest rates, or if you weren’t clearly informed about your options. A solicitor can help review your documents for free.
Q2.❓ Is mis-sold car finance a scam?
No, it’s not a scam to claim. It’s a legal issue. The Financial Conduct Authority (FCA) has found that many agreements were unfair. You may be owed money.
Q3.❓ How far back can I claim for mis-sold car finance?
You can typically claim as far back as 2007, depending on your agreement and circumstances.
Q4.❓ What’s the average payout for mis-sold car finance?
Compensation can range from £1,000 to over £10,000, depending on interest paid, hidden fees, and your specific case.
Q5.❓ Can Martin Lewis help with mis-sold car finance?
Martin Lewis has spoken out about this issue and advises checking if your car finance deal involved a hidden commission or unfair practices.
Red Flags: Signs You May Have Been Mis-Sold
- You weren’t told about commission
- The interest rate seemed unusually high
- You didn’t understand the agreement
- You weren’t offered any alternatives
- You felt rushed or pressured
- You had poor credit but were still approved easily
If any of this sounds familiar, it’s worth investigating whether your car finance deal was mis-sold.
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.
Mis-Sold Car Finance Reviews: What Are People Saying?
Thousands of drivers have already come forward, sharing their stories and successful claims. Many customers didn’t realise they were overpaying for years.
One user said:
“I had no idea I’d paid over £3,000 more than I should have. Thanks to a legal review, I got most of it back!”
Positive mis-sold car finance reviews show that claims are legitimate and can lead to substantial payouts.
Is It Too Late to Claim?
Not necessarily. The question how far back can you claim mis sold car finance is common — and for good reason. In many cases, you can claim even if the deal ended over 10 years ago. What matters is:
- When you became aware of the mis-selling
- Whether your complaint is within 6 years of that awareness
National Claims can help check your eligibility based on your unique situation.
Final Thoughts: Don’t Let Mis-Selling Go Unchallenged
If you suspect your car finance agreement wasn’t transparent or fair, you have the legal right to challenge it. With the FCA actively encouraging fair compensation and experts like Martin Lewis raising public awareness, now is the time to act.
You could be sitting on a significant claim, and help is just a click away.
Start Your Claim Today
Don’t delay — claims are time-sensitive.
Whether you’re asking “is mis sold car finance legit” or wondering “what’s the average payout for mis sold car finance,” the answer is clear: thousands of people are already claiming successfully.
👉 Contact National Claims today to get started with a free consultation.
We’ll help you check if you’re eligible — and connect you with a solicitor who’ll fight your case, every step of the way.
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