Types of Car Finance Agreements That Were Mis-Sold
Consumers who purchased a vehicle on finance under a specific agreement may have been mis-sold, making them victims of unfair treatment. We explore the different types of car finance agreements and provide everything you need to know about checking your eligibility and starting your claim.
Why Are Car Finance Agreements Affected?
Finance agreements are a popular way for motorists to purchase a vehicle, as they allow them to spread the cost of the car over a set period. As the full amount doesn’t need to be paid upfront, it has become the optimal, affordable and manageable way to own a vehicle.
Millions of finance agreements between April 2007 and November 2024 have potentially been mis-sold because of unfair commission fees. Many agreements involved a Discretionary Commission Arrangement (DCA), which the Financial Conduct Authority (FCA) has since banned. This arrangement allowed dealers to charge a higher interest rate so they would get a bigger commission fee.
A Supreme Court decision in August 2025 means agreements not involving a non-discretionary commission may also have been unfair and mis-sold. The court ruled that while the lack of disclosure isn’t enough to justify a complaint, agreements may have been mis-sold if the commission fee was excessive and detrimental to the consumer.
The FCA will launch a redress scheme in early 2026 to compensate affected consumers.
You Might Have Been Mis-Sold if You Had One of These Agreements
If you purchased a vehicle on finance between 2007 and 2024 with one of the following types of agreements, there is a possibility that you were mis-sold due to unfair commission fees.
