Motor Financing Claims Solicitors
Recover Hidden Commission Fees in the UK
If you financed a vehicle through hire purchase (HP), personal contract purchase (PCP), or other motor finance agreements between 2007 and 2021, you might be owed significant compensation. Many UK car finance agreements included hidden commission fees, inflated interest rates, or lacked the transparency required by law. These practices resulted in consumers overpaying for their finance agreements without their knowledge.
At Cooper Hall Solicitors, we specialise in motor financing claims, helping clients recover compensation for mis-sold car finance agreements. Whether you purchased a car, van, motorcycle, or another vehicle, we ensure your claim is handled with care and professionalism, so you can reclaim what’s rightfully yours.
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What Are Motor Financing Claims?
A motor financing claim involves challenging unfair practices in car finance agreements, where dealerships, brokers, or lenders failed to disclose key information or acted in ways that created an unfair relationship under the Consumer Credit Act 1974.
Common Mis-Selling Practices in Car Finance Agreements:
Hidden Commissions: Brokers and dealerships received undisclosed commission payments from lenders for arranging your finance agreement.
Discretionary Commission Arrangements (DCAs): Brokers inflated interest rates to maximise their commission earnings.
Misrepresentation of Costs: Consumers were not fully informed about balloon payments, ownership terms, or the true costs of their agreements.
Lack of Affordability Checks: Agreements were sold without ensuring the consumer could afford the monthly payments.
High-Pressure Sales Tactics: Customers were pressured into signing agreements without being given enough time to review or understand the terms.
These issues are similar to Plevin claims, which arose from the landmark case Plevin v Paragon Personal Finance, where hidden commissions were found to create an unfair relationship. The Financial Conduct Authority (FCA) has since flagged millions of UK car finance agreements for potential mis-selling.
Who Can Make a Motor Financing Claim?
You may be eligible to claim compensation if:
- You financed a vehicle through PCP or HP agreements.
- The dealership or broker failed to disclose commission payments.
- Your agreement included inflated interest rates tied to discretionary commission arrangements.
- You were misled about ownership terms, balloon payments, or hidden costs.
- Affordability checks were not properly conducted, leading to financial strain.
- You were pressured into signing without clear explanations of your options.
Eligible Vehicles for Claims:
- Cars (new or used)
- Vans and trucks
- Motorcycles
- Caravans, motorhomes, and other vehicles
How Do I Know If I Was Mis-Sold Car Finance?
Your car finance agreement may have been mis-sold if:
- You were not informed about commission payments made to the dealership or broker.
- You were offered higher interest rates to benefit the broker’s commission.
- The salesperson failed to explain PCP vs HP options clearly or transparently.
- Key terms, such as balloon payments, ownership rights, or additional charges, were not disclosed.
- Affordability checks were skipped, and the agreement became financially unmanageable.
- High-pressure sales tactics prevented you from reviewing the terms adequately.
If any of the above applies, you may have grounds for a claim under the Consumer Credit Act 1974.
Types of Car Finance Agreements Covered
1. Personal Contract Purchase (PCP)
PCP agreements are popular for their flexibility. They involve a deposit, monthly payments, and a balloon payment at the end to own the vehicle.
Common Mis-Selling Issues:
- Hidden balloon payment terms.
- Inflated interest rates linked to commission arrangements.
- Lack of transparency about ownership options at the agreement’s end.
2. Hire Purchase (HP)
HP agreements involve paying off the car in fixed installments, with ownership transferring once the loan is fully paid.
Common Mis-Selling Issues:
- Undisclosed commissions driving up the overall cost.
- Misrepresentation of repayment terms or affordability.
How Do Motor Financing Claims Work?
At Cooper Hall Solicitors, we simplify the claims process to make it as straightforward as possible:
Step 1: Free Initial Assessment
We review your finance agreement to check for signs of mis-selling, such as hidden commissions or unfair terms.
Step 2: Agreement Analysis
Our team investigates your agreement, focusing on commission structures, interest rates, and any breaches of the Consumer Credit Act 1974.
Step 3: Claim Submission
We file your claim with the lender, supported by clear legal evidence of mis-selling.
Step 4: Settlement Negotiation
We negotiate for fair compensation, ensuring all hidden costs and interest are refunded.
Step 5: Escalation (if required)
If the lender denies your claim, we escalate the matter to the Financial Ombudsman Service (FOS) or pursue court action.
How Much Compensation Can You Claim?
Compensation for motor finance claims typically includes:
Refund of Excess Commission Fees: Any undisclosed commissions paid to brokers or dealerships.
Interest on Overpayments: Compensation for inflated interest rates or additional charges.
Additional Financial Redress: Covering the stress or financial impact caused by the unfair agreement.
Typical Payouts:
Average Compensation: £1,600 to £10,000, depending on the size of the agreement and the extent of the mis-selling.
High-Value Cases: Significant claims have exceeded £10,000 when multiple vehicles or long-term agreements were involved.
Frequently Asked Questions
A mis-sold car finance agreement occurs when a lender, broker, or dealership misleads you or fails to act transparently during the agreement process. Common examples include:
Hiding commission payments made to dealerships or brokers.
Offering inflated interest rates to boost their commission.
Failing to explain key finance options like PCP vs. HP agreements.
Skipping affordability checks, leading to financial strain.
If any of these apply, you could claim compensation under the Consumer Credit Act 1974. Mis-selling is more common than many realize, so don’t wait—our experts can help you determine your eligibility.
You might have been mis-sold car finance if you experienced any of the following:
Hidden Commissions: You weren’t informed about broker or dealer commissions.
Unclear Terms: Key terms like balloon payments or ownership rights were not explained.
High Interest Rates: You were charged unnecessarily high interest to inflate commissions.
Inadequate Affordability Checks: The repayments caused undue financial stress.
High-Pressure Tactics: You felt rushed or pressured into signing without fully understanding the agreement.
If this sounds familiar, don’t worry—our team will review your agreement for free and guide you through the next steps.
Claims can be made for various types of car finance agreements, including:
Personal Contract Purchase (PCP): Agreements involving monthly payments with an optional final payment to own the vehicle.
Hire Purchase (HP): Fixed-term agreements where you own the vehicle after completing all payments.
Other Vehicle Financing: Finance agreements for motorcycles, vans, caravans, and more may also qualify if they were mis-sold.
If you’re unsure about your agreement type, reach out, and we’ll clarify your options.
Compensation varies based on the agreement, its duration, and the mis-selling practices involved. Common forms of compensation include:
Refund of Hidden Commission Fees: For undisclosed payments made to brokers or dealerships.
Interest Reimbursement: Refunds for excessive interest charges.
Financial Redress: Compensation for stress or financial harm caused by the mis-selling.
Average payouts range between £1,600 and £10,000, with some exceeding this for larger agreements. Don’t leave money on the table—contact us to estimate your potential claim.
Yes! Mis-sold agreements are eligible for compensation whether:
You’ve already paid off the finance agreement.
You financed a used car or any other vehicle, such as a motorcycle or van.
Hidden commissions, inflated interest rates, or misleading terms remain grounds for a claim. Let us investigate your case to see how much you could recover.
Yes, but there’s flexibility depending on your situation:
Six years from the start of the agreement, or
Three years from when you discovered the mis-selling.
Even older agreements may qualify if you became aware of the issue recently. Don’t delay—every day counts in securing the compensation you deserve.
No, you don’t need your original documents. Our team can retrieve the details of your agreement directly from your lender or your credit record. This makes starting a claim simple and stress-free.
Even if you knowingly signed, you may still have a claim if:
The lender or broker failed to disclose hidden commissions.
You were charged inflated interest rates.
Terms like ownership rights or balloon payments were misrepresented.
Transparency is a legal obligation. If it wasn’t upheld, you have grounds to claim.
Yes, you can still pursue a claim. In many cases, compensation can be recovered through:
The lender or dealership’s insurance.
Successor companies handling outstanding liabilities.
We’ll investigate all options to ensure your claim is addressed.
No, filing a claim for mis-sold car finance will not impact your credit score. Lenders cannot penalize you for seeking fair compensation.
Most claims are resolved within 6–12 months, but this depends on:
How quickly lenders respond.
The complexity of the case.
Whether the claim escalates to the Financial Ombudsman Service or court.
Our team works diligently to keep your case moving and will keep you updated throughout the process.
At Cooper Hall Solicitors, we go beyond basic legal representation. Our proven track record, expert team, and commitment to client satisfaction set us apart:
- Free Case Review: We assess your eligibility at no cost.
- Paperwork Assistance: No documents? No problem. We’ll retrieve the evidence needed to build a strong claim.
- Aggressive Negotiation: We fight to maximize your compensation.
No Win, No Fee: You only pay if we succeed.
We operate on a No Win, No Fee basis, meaning:
No upfront costs.
You only pay if your claim is successful, ensuring there’s no financial risk to you.
Even if your claim was previously rejected, you may still have a case. New rulings or additional evidence can make a difference. Contact us for a free review, and we’ll explore every possible option to get you the compensation you deserve.
Why Choose Cooper Hall Solicitors?
Transparent Process
Clear communication and step-by-step guidance.
Proven Expertise
Years of experience handling financial claims.
Nationwide Support
Helping clients across England reclaim hidden costs and fees.
No Win, No Fee
You pay nothing unless we secure compensation for you.