Hidden car finance commissions may have cost drivers thousands for years
Thousands of drivers who took out car finance deals between 2007 and 2024 may have overpaid due to hidden commission practices. Dealers and brokers could increase interest rates to earn more, often without clearly explaining the extra cost. Now, many are checking if they can reclaim money as part of a growing mis-selling investigation.
The issue centres on PCP (personal contract purchase) and HP (hire purchase) agreements, where consumers were frequently left unaware of the true cost of borrowing. Lack of clear information, rushed decisions, and a focus on monthly payments rather than total expenses meant many paid more than necessary. Dealers and brokers sometimes raised interest rates to boost their commission, without properly disclosing this conflict of interest.
Signs of potential mis-selling include being offered only one financing option, facing a high APR compared to credit score or market rates, or being told that everyone received the same rate. Another red flag was when commission details were not clearly explained.
Locksley Law, a regulated firm, is helping consumers navigate the claims process. Their legal team handles all checks on agreements, gathers evidence, contacts lenders, and calculates compensationâwithout consumers needing to manage paperwork or chase lenders themselves. The typical payout, if mis-selling is confirmed, is around ÂŁ700, though this depends on the agreement and how much was overpaid.
Time to claim is limited, and those affected are being urged to check their eligibility and start the process soon.
The investigation into hidden commissions in car finance deals covers agreements made between 2007 and 2024. Consumers who suspect they were mis-sold a deal can seek help to recover compensation. With a short window to act, checking eligibility now could secure a refund for those who overpaid.
