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Understanding Hidden Commissions
If you bought a car on finance before 28th January 2021, there's a significant chance you paid more than you should have, and you could be owed up to £700 per agreement. This is due to a widespread practice of hidden commissions, particularly a system known as a Discretionary Commission Arrangement (DCA).
Think of it as a hidden charge that you were never told about.
For years, lenders allowed car dealers (acting as brokers) the 'discretion' to set the interest rate on your finance agreement within a certain range. The problem was, the higher the interest rate they set for you, the more commission the dealer received from the lender.
This created a clear conflict of interest. The dealer had a direct financial incentive to make your loan more expensive, not to find you the best deal.
The financial regulator, the FCA, investigated this practice and found it was causing "widespread consumer harm," estimating that customers on a typical £10,000 loan were overcharged by an average of £1,100. They banned DCAs entirely in January 2021.
The issue doesn't stop with DCAs. In a landmark ruling, the UK's Supreme Court confirmed that it was unlawful for a lender to pay any commission to a dealer without the customer's fully informed consent.
This means you had to be told about the existence, nature, and amount of the commission. This broader principle could apply to an even wider pool of finance agreements.
Consumer champions like Martin Lewis are right to empower people and provide tools to start a claim risk free. You absolutely have the right to do this yourself. However, the value of using an expert service like YourSolicitor is clear:
Can't find your old paperwork? Don't worry. This is one of the biggest hurdles for people claiming alone. Our systems can locate your past finance agreements, often with just your name and old addresses. Lenders routinely delete old files after six years, making key information difficult to access without expert help.
When the FCA's pause is lifted, lenders are expected to receive an unprecedented volume of PCP claims. Many are already hiring extra staff to handle the surge, which increases the chance of processing errors. Our experts have deep knowledge of how car finance agreements are structured.
Even a small mistake in interest, commission, or APR calculations could reduce any compensation you may be entitled to. We review any offer from the lender and, if needed, deal directly with them to help ensure the calculation is accurate and fair.
Starting a claim is just the first step. Seeing it through to a successful and fair conclusion is the hard part. With our 'No Win, No Fee' guarantee, you get our expert team in your corner, fighting for you every step of the way.
With our 'No Win, No Fee' guarantee, you get our expert team in your corner, fighting for you every step of the way, so you can pursue your claim with confidence.
In many cases, lenders routinely delete or destroy old files after six years, not because they have anything to hide but simply because they cannot realistically store hundreds of millions of documents indefinitely.
The difficulty this creates is that key information about your agreements - such as the true APR, hidden commissions, or interest charges - may no longer be easily available.
With so much data missing or incomplete, there is a real risk of underpayment if a claim is handled without expert oversight. If the bank has deleted your records, how can you expect the correct settlement?
The initial assessment is carried out with no upfront payment required. If you decide to proceed, you'll enter into a No Win, No Fee agreement, which means our agreed success fee is payable only if your claim is successful. A cancellation fee may apply if you cancel after the 14-day cooling-off period.
You're not alone, and that's exactly where we can help. In less than 60 seconds, our AI Agreement Checking Platform can search for your car finance agreements and tell you whether you may be eligible to claim. You don't need your registration number, lender name, or any documents. Checking your eligibility will not affect your credit score in any way.
No, it will not. We use a 'soft search' to find your finance agreements and check your details. This type of search is not visible to lenders and has no impact on your credit rating, so you can check with complete peace of mind.
That is not a problem. Our service is designed to solve this exact issue. We can locate your past finance agreements for you, so you don't need to worry about digging out old documents.
If you bought a car using a finance agreement between 2007 and 28 January 2021, you may be eligible. The issue often relates to "discretionary commission arrangements," where brokers could increase your interest rate for a higher commission. Our assessment is the easiest way to determine if your specific agreement was affected.
The amount of compensation may vary depending on the loan size and the specifics of the mis-selling. While the total potential redress for UK consumers is estimated to be over £15 billion, the Financial Conduct Authority (FCA) has indicated that redress for hidden-commission car-finance cases is typically up to £700 per agreement.
After you submit your details, an initial assessment will be carried out. Should you decide to proceed, you'll be asked to sign an electronic agreement to formally begin the claims process. If the review suggests there are grounds for a claim, you will be contacted to talk you through the findings and next steps. From there, our specialist team will handle everything.
Your claim will be handled by a professional and experienced team of expert guides. Our focus is on making the process simple, transparent, and stress-free for you, ensuring you are supported and informed every step of the way. You do not need to use a representative. You can submit a complaint yourself to your car finance provider.