If you bought a car, van, motorbike, motorhome or caravan on finance, you could be among the millions of consumers eligible for a significant refund.
It’s due to set out its next steps in May 2025, and the results could entitle millions of drivers across the country to thousands of pounds in compensation. But, to make a legitimate claim, you'd need to have taken out a PCP or HP agreement through a car garage, dealer or broker.Normally, you'll pay a deposit, which is about 10% of its value, and you'll finance the remainder.
Under a PCP agreement, your lender will consider how much your vehicle is expected to drop in value over a specified timeframe to determine your monthly repayments. Until 2021, many car dealers operated under "discretionary commission arrangements" , allowing them to earn commissions based on the interest they set for your finance.
Even if your agreement wasn’t affected by a DCA, it’s very likely the dealer treated you unfairly because of an “undisclosed commission” from the finance company.