UK motorists have unknowingly paid a combined £8.1 billion in secret car finance commissions between 2007 and 2021, according to data published by TotalClaim.
During this period, many car dealerships used Discretionary Commission Arrangements (DCAs), which gave them the power to raise customer interest rates in order to boost their own earnings — often without proper disclosure.
In January 2021, the FCA banned these practices, but not before 14.6 million car finance agreements were affected. On average, customers overpaid by around £1,100 each on mis sold finance deals.
- High Interest Rates: APR above 4.9% may indicate inflated rates to generate higher dealer commission.
- No Commission Disclosure: Dealers should have clearly explained they were earning commission from an agreement.
- Inadequate Affordability Checks: Rushed assessments without proper income verification may indicate poor practice.
- Pressure to Accept Dealer Finance: Being discouraged from seeking independent funding could indicate commission-driven selling.
- Multiple Vehicle Purchases: Each finance agreement between 2007-2021 could generate separate compensation.
One customer told us he specifically asked about commission and was told there wasn’t any. We found evidence he paid £1,800 in hidden charges across two agreements. – Mark Henry, Total Claim
Scale of the Problem FCA research shows 95% of car finance agreements included commission models, meaning most motorists from this period could be affected by mis sold car finance. With average compensation of £950 per agreement, PCP claims could see total redress exceed £14 billion.
Taking Action Following the Supreme Court’s recent ruling confirming customers’ rights, TotalClaim offers a free 2-minute eligibility check for any car finance claim with no credit score impact. The no-win-no-fee process handles all lender communications, and PCP claims can proceed even without original paperwork.
The company covers 50+ UK lenders and has processed over 15,000 customer inquiries since launch, with eligibility rates exceeding 70%.
While the FCA prepares its industry-wide redress consultation, consumers can start their car finance claim immediately under existing legal frameworks.
