Mis-Sold Motor Finance
Were you sold motor finance between 2007 and 2021?
Between 2007 and 2021, many UK consumers entered into car finance agreements—often Personal Contract Purchase (PCP) or Hire Purchase (HP)—without being told that dealers or brokers received commission payments from lenders.
These commission arrangements, particularly those that incentivised brokers to increase interest rates, have since come under scrutiny. The Financial Conduct Authority (FCA) banned this type of discretionary commission model in January 2021.
These commission arrangements, particularly those that incentivised brokers to increase interest rates, have since come under scrutiny. The Financial Conduct Authority (FCA) banned this type of discretionary commission model in January 2021.
Lloyds Bank
Black Horse
Barclays
Close Brothers
Why does this matter?
When commissions were not disclosed, consumers may have unknowingly paid higher interest rates or entered into agreements that were not in their best interests. This lack of transparency could breach FCA rules, particularly those requiring fair treatment and full disclosure.
What are the implications?
Motor finance providers—such as Barclays, Black Horse, Close Brothers, and Lloyds Bank—are now facing regulatory pressure and consumer complaints related to historic commission practices.
If you're researching mis-sold car finance, it's worth understanding how these agreements worked and what role commission played in setting your loan terms.
This website is for informational purposes only and does not offer claims management services.