In this guide
Mis-sold Overdrafts
Mis-sold Mortgages
Mis-sold Credit | Store Cards
Mis-sold PCP Car Loans
Mis-sold Fraud & Scam Advice
Mis-sold Pensions & Investments
Hidden | Undisclosed Commissions
Mis-sold Pay Day Loans
Mis-sold
Car Finance
& PCP?
PCP Car Finance Advice
By David Turner
Did you drive away with more than you could afford? If you were sold a car with finance or a PCP contract and you weren’t aware of the commission charged by your salesperson, you may be entitled to a claim.
Published: 12/02/2025 – 11:59 | Updated: 12/02/2025 – 16:10
Mis-sold Car Finance & PCP
Introduction
Recent court rulings have significantly changed the landscape of PCP (Personal Contract Purchase) car finance agreements, particularly regarding undisclosed commissions. These rulings question the legality of commission arrangements between lenders and car dealerships, potentially impacting millions of PCP agreements.
DCA Arrangements
Discretionary Commission Arrangements (DCAs) allowed car salespeople or finance brokers to select lenders and earn higher commissions by steering customers towards more expensive finance deals. This lack of transparency meant customers often paid more than necessary.
Undisclosed Commissions
Recent court rulings extend claims beyond DCAs to *all* undisclosed commissions. If a commission was paid without full disclosure to the customer, it may now be challenged.
Making a Claim
- Gather documentation: finance agreements, dealership correspondence, and payment records.
- Review your agreement: check for mentions of commissions or hidden fees.
- Contact the finance provider: request full disclosure of commission arrangements.
- Make a formal complaint: if a commission was undisclosed, file an official complaint.
- Escalate to the Financial Ombudsman Service: if dissatisfied, seek further assistance.
- Seek legal advice: consult a solicitor specializing in financial mis-selling.
Filing a complaint should not negatively impact your relationship with the lender.
Impact on Lenders
These rulings could lead to significant financial liabilities for lenders, comparable to the PPI scandal, potentially resulting in billions of pounds in compensation.
Mis-sold Car Finance & PCP
Introduction
Recent court rulings have significantly changed the landscape of PCP (Personal Contract Purchase) car finance agreements, particularly regarding undisclosed commissions. These rulings question the legality of commission arrangements between lenders and car dealerships, potentially impacting millions of PCP agreements.
DCA Arrangements
Discretionary Commission Arrangements (DCAs) allowed car salespeople or finance brokers to select lenders and earn higher commissions by steering customers towards more expensive finance deals. This lack of transparency meant customers often paid more than necessary.
Undisclosed Commissions
Recent court rulings extend claims beyond DCAs to *all* undisclosed commissions. If a commission was paid without full disclosure to the customer, it may now be challenged.
Making a Claim
- Gather documentation: finance agreements, dealership correspondence, and payment records.
- Review your agreement: check for mentions of commissions or hidden fees.
- Contact the finance provider: request full disclosure of commission arrangements.
- Make a formal complaint: if a commission was undisclosed, file an official complaint.
- Escalate to the Financial Ombudsman Service: if dissatisfied, seek further assistance.
- Seek legal advice: consult a solicitor specializing in financial mis-selling.
Filing a complaint should not negatively impact your relationship with the lender.
Impact on Lenders
These rulings could lead to significant financial liabilities for lenders, comparable to the PPI scandal, potentially resulting in billions of pounds in compensation.
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Some Mortgage Mis-Selling Solutions
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If you’ve been mis-sold a mortgage, you may be facing higher costs, unsuitable terms, or long-term financial strain. Whether you were offered a mortgage without proper affordability checks, sold a product with hidden fees, or misinformed about the terms, this page is here to guide you. We provide clear information to help you identify if you were mis-sold a mortgage, understand your rights, and explore the steps you can take to seek redress. Our goal is to ensure you have the support and resources you need to address the issue and take control of your financial future.
