According to information from the Financial Conduct Authority (FCA), a significant proportion, potentially up to 90%, of PCP and HP car finance agreements taken out between 2007 and 2021 could have included undisclosed commissions, often referred to as “Discretionary Commission Arrangements (DCAs)”, which allowed dealers to inflate interest rates without the customer’s knowledge, resulting in higher repayments; this practice was banned by the FCA in January 2021.
Our experienced team prepares all necessary documentation and submits your claim to the appropriate authorities on your behalf.
Many consumers report that they receive advice that isn’t fully clear or balanced when it comes to car finance deals. According to the FCA’s report (March 2019), there are significant concerns that key information—including how interest rates are set and the overall cost of the agreement—is not presented in a fully transparent manner. This can lead to consumers inadvertently agreeing to terms that aren’t suited to their needs. The report highlights that incentives, such as commission structures that reward brokers for recommending higher interest rates, may result in advice that leans in favor of the finance provider rather than the customer.
Key points from the report include:
Pressure tactics are a recurring issue in the car finance market, where consumers may be rushed into decisions without sufficient time to review all the details. The FCA report emphasizes that some sales practices create an artificial sense of urgency—for instance, suggesting that a deal is only available for a limited time—to pressure customers into quickly signing on the dotted line. Such high-pressure environments may not allow the consumer to fully consider the long-term implications of the finance agreement, particularly when key risks and costs are not yet fully disclosed.
The report advises that you should:
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