A mis-sold car finance agreement is one that was not arranged fairly, usually because the commission paid to the dealer was hidden from you when you signed the agreement, the interest rate was quietly inflated, or the finance was never suitable in the first place.
If you are looking at your existing car finance agreement and have reason to believe it was mis-sold, or are unsure as to whether you’ve been unfairly treated, the experts at Stormcatcher are here to help. This page will help you work through your current agreement and understand the options available to you. For a broader overview, our guide to mis-sold car finance explores the current controversy in more detail.
Mis-sold car finance agreements at a glance
| What to check | Whether the commission was disclosed, how your interest rate was set and whether your affordability was checked |
| Key dates | Agreements taken out between 6th April 2007 and 1st November 2024 may qualify for compensation |
| Finance types | PCP and hire purchase (HP) qualify, PCH does not |
| Where to find it | Your lender, the dealer, your credit file or old bank statements |
| Next step | Confirm whether you are eligible for compensation, then decide whether to get help from an automotive lawyer or complain yourself |
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What makes a car finance agreement mis-sold?
A car finance agreement is mis-sold when you were not given the information you needed to make a fair decision when you signed it. The most common cause is undisclosed commission. This is where the dealer earned a payment from the lender for arranging your finance and never told you. In some cases, DCAs (Discretionary Commission Arrangements) were used. This is where the dealer could increase your interest rate to secure higher commissions. This then means that you pay more than you really should. Fortunately, DCAs were banned by the FCA in 2021.
Mis-selling can also involve an undisclosed tie between the dealer and lender, a lack of an affordability check and pressure from the dealer to sign the agreement. Where commission was deliberately concealed, a case can overlap with car finance fraud.
What should I look for in my car finance agreement?
Reviewing your car finance agreement carefully is the best way to identify anything that could indicate mis-selling. You can do this yourself, or if you prefer, ask for help from an experienced car finance lawyer like Stormcatcher.
You should look for the following when checking through your agreement:
- Any mention of commission, or, just as telling, no mention of commission at all
- The interest rate (APR). If the rate is unusually high or doesn’t match what you remember, it might be an indication that a DCA was helping to raise it.
- Who arranged the finance, and whether the dealer had any influence in pushing you towards one lender over another.
- Any record that your income, outgoings or ability to afford the loan were assessed properly.
- The date the agreement started and whether it was HP or PCP.
If any of these have you scratching your head or asking questions, it is certainly worth further investigation. Our guide to understanding your rights helps to explain what each of these points means in practice.
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How do I find an old car finance agreement?
If you can no longer locate your car finance agreement, you can still trace it. You are entitled to request a copy from your lender and the dealer who arranged the finance. Your credit file is also available for free, and should show finance arrangements you have held dating back several years. Your bank statements are also useful as they will show your monthly payments from when the agreement started until the most recent payment.
Am I eligible for car finance mis-selling compensation?
You may be eligible for car finance mis-selling compensation if your agreement meets the current FCA criteria.
- The agreement was taken out between 6th April 2007 and 1st November 2024.
- Commission was payable to the dealer or broker who arranged it.
- It was a credit agreement, such as HP or PCP.
- The finance was for personal use. Business agreements are generally excluded.
Meeting these conditions does not guarantee compensation, but it does mean your agreement is worth reviewing properly. To understand how the redress scheme works and where it currently stands, our earlier-mentioned mis-sold car finance page explores it in more detail.
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Trustindex verifies that the original source of the review is Google. Exceptional Support During the Most Stressful Consumer Dispute I Have Ever Faced
There are very few occasions in life when you genuinely feel that someone has stood beside you through a difficult situation and helped you achieve the right outcome. My experience with Philip Harmer and Antonia at Stormcatcher Law was one of those occasions.
I approached Stormcatcher after what had already become an exhausting and highly stressful dispute involving a faulty £82,850 motorhome with a Dealer based in Cannock. By that point, I had spent months dealing with repeated faults, unsuccessful repair attempts, cancelled trips, endless correspondence and increasing frustration. What should have been an exciting purchase had turned into one of the most draining experiences I have ever faced as a consumer.
From ourfirst conversation, Philip gave me something I had been missing for a very long time: confidence that somebody was actually listening, understood the situation and had a clear plan for how to deal with it.
Throughout the dispute, Philip and Antonia were professional, patient, supportive and wonderfully persistent. No matter how many setbacks occurred, they remained calm and focused. When I felt frustrated, they remained measured. When deadlines were missed and arrangements failed, they kept moving the matter forward. When the process became emotionally draining, they gave me confidence that I was not fighting the battle alone.
What impressed me most was the balance they struck between legal expertise and genuine human support. I was never made to feel like just another file. The advice was always clear, practical and honest. Expectations were managed properly and communication was excellent throughout.
By the time Stormcatcher became involved, the dispute had generated a huge amount of evidence, correspondence and history. Philip took the time to understand every aspect of it and never lost sight of the key objective: achieving the right outcome.
After months of resistance, delays, missed commitments and legal arguments, Stormcatcher ultimately secured repayment of the full £82,850 purchase price and brought a dispute that had lasted almost a year to a successful conclusion.
The financial result was obviously important, but what meant even more to me was the sense of relief that came from finally bringing the matter to an end. After living with the stress of the dispute for so long, I cannot adequately describe how grateful I was to have someone in my corner who was prepared to keep going until it was resolved.
I would like to personally thank Philip Harmer and Antonia at Stormcatcher Law for their hard work, professionalism, patience and determination.
If you are facing a difficult consumer dispute and need solicitors who genuinely care about achieving the right outcome for their client, I would recommend Stormcatcher Law without hesitation.
I am incredibly grateful for everything they did for me. They helped me bring a very difficult chapter to a close, and that is something I will never forget.
Thank you, Philip and Antonia.
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What are my next steps?
If your car finance agreement looks like it might have been mis-sold, you have options. You can go to your lender directly and complain for free. If you are not satisfied with the response, you can escalate your concerns to the Financial Ombudsman Service at no cost. Alternatively, if legal jargon, negotiations, stress and workload are holding you back, speaking to a professional automotive law specialist like Stormcatcher can help. We can review the paperwork ourselves and then lead the negotiations on your behalf.
Our team of specialist car finance experts have genuine motor trade experience and uses this to help settle your claim. Whilst no guarantee of compensation is possible, we work with your best interests at heart, making the entire process as stress-free as possible.
If you have already decided to pursue compensation, our handy guide helps walk you through how to make a mis-sold car finance claim.
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Mis-sold car finance agreement FAQs
No. Your lender or dealer should hold records of your agreement. Your credit file and bank statements can also help confirm your payments and how long the agreement lasted.
That is a separate question from the potential mis-selling of an agreement. Depending on the agreement, you may be able to exit early, settle the finance or hand the car back through voluntary termination once you have paid enough. These rights exist whether the agreement was mis-sold or not. You can explore car consumer finance in more detail for further help.
Not yet. It has been paused while legal challenges are heard. At this time (mid 2026), you can still register your complaint, but you may not have a resolution until 2027. Our mis-sold car finance page is updated with the current status of the scheme regularly.
About Philip Harmer
Philip studied consumer finance during his master’s degree and led the Finance and Insurance division for Mercedes-Benz Retail Group. His deep understanding of compliance processes, combined with Stormcatcher’s FCA authorisation, allows him to advise on HP, PCP, and insurance mis-selling with authority. He has acted against most major finance providers and is known for securing strong outcomes in complex finance disputes.
He regularly advises on car finance complaints, finance-related vehicle defects, and ombudsman referrals.
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