Have you been mis-sold car finance?
For years, car dealers have been receiving commission from lenders on finance deals without buyers being fully aware. This has led to unfairly sold agreements and an increased cost of borrowing for some… and you might be owed compensation.
Could this be you?
We are a claims management company with the relevant expertise. However, you do not need to use a third party to present a complaint to a firm. Following your complaint, If you are not happy with the firm's decision, you can refer your complaint to the Financial Ombudsman Service free of charge.
Did you pay commission without saying 'yes'?
There’s a 99% chance you paid commission on your car finance deal… but did you know about it?
Following the FCA’s motor finance review, the UK Court of Appeal has now deemed it unlawful to charge commission without full disclosure and explicit consumer consent – ruling that lenders must be more transparent in car finance deals.
So, if you paid commission on a car finance deal without knowing about it, or without giving signed written consent, you could be owed compensation.
This ruling affects all agreements with hidden commission:
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Discretionary commission arrangements (DCAs): brokers change aspects of the loan (like interest rates) to earn more commission.
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Non-discretionary commission arrangements (non-DCAs): brokers are paid a flat-fee commission regardless of the features of the loan.
While lenders may seek to appeal this decision, unless the Supreme Court overturns this decision the law is clear.
If you did not consent to the payment or are not satisfied with your finance deal, you should complain.
Industry experts estimate that motor finance lenders could owe up to £30 billion.
Why Hallbrook?
Experts in finance claims
Hallbrook is a trusted provider of expert financial claims support to clients all over the UK. Over the past 14 years, our full representation service has helped people like you receive over £70 million in compensation for mis-sold investments… be it in pensions, shares, CFDs or bonds.
Thanks to our industry insights, we saw the mis-sold car finance scandal coming, so we’ve already been working on this issue for a number of years…
March 2019:
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The FCA issued a full report and press release focusing on issues relating to car dealer commission arrangements.
November 2022:
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Following 2 years of research and communication with legal experts, Hallbrook launched Car Finance Claims and advertising campaign.
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We’ve had 2000+ individual complaints against car finance lenders relating to lenders we’ve identified as operating a discretionary commission model.
January 2024 – current day:
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The Financial Ombudsman Service upheld two key complaints against lenders of car finance operating a discretionary commission model.
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The FCA announced an investigation into car finance complaints.
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Barclays launched a legal challenge against the Financial Ombudsman Service.
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The FCA paused the need for lenders to reply to complaints related to discretionary commission arrangements until May 2025.
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The FCA further extended the deadline for motor finance firms to respond to complaints about commission arrangements until 4th December 2025. Consumers can still make complaints during this time, but lenders aren’t required to respond until after that date. For more details, visit the FCA’s car finance complaints page.
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The UK Court of Appeal judgement on the 25th October determined that it is unlawful for brokers and dealers to receive commission from lenders without the customers’ informed consent.
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Car Finance Claims is now handling more than 10,000 claims.
Claims are likely to be dealt with on a first-come, first-served basis.
Don't delay in registering your claim to get a quicker settlement, even if further time restrictions are imposed.
