Mis-Sold Car Finance

Legal advice and assistance for mis-sold car finance
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Mis-sold car finance is any vehicle finance agreement, such as PCP or hire purchase, that was arranged unfairly, most often because commission was paid to the dealer and hidden from the buyer. Millions of drivers across the UK could be owed car finance mis-selling compensation as a result.

At Stormcatcher, our team of experienced automotive lawyers help people understand whether they have been affected and what their options are.

Mis-sold car finance at a glance

What it meansA car, van or motorbike finance agreement where hidden commission or unfair terms meant you paid more than you should have
Who may be affectedDrivers who took out finance between 6th April 2007 and 1st November 2024 where commission was paid to a broker
FCA estimateThere could be as many as 12.1 million eligible agreements with an average payout of £830 each (estimates vary)
Current statusThe FCA redress scheme is confirmed but paused while legal challenges are heard. Complaints can still be registered now
Finance types coveredPCP, hire purchase and similar agreements
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What is mis-sold car finance?

Mis-sold car finance typically refers to agreements where you were not given full disclosure before signing. This would typically be the dealer earning commission from the lender that you were never told about. For years, dealers could raise interest rates you were paying in order to boost that commission. These DCAs, or Discretionary Commission Arrangements not only saw people paying much more than they should, but had the potential to lead people deeper into debt. In 2021, the FCA banned DCAs.

Mis-selling of car finance can also cover missing affordability checks, unfair sales tactics and undisclosed lender ties. The lack of transparency from dealers, lenders or brokers creates, what the law calls an unfair relationship between you and the other party. This is the same legal grounding that underpins wider misrepresentation and mis-selling claims.

What does the recent FCA ruling mean for consumers?

In 2025, the courts found that lenders had broken the law by failing to disclose important commission information to customers. In response, the FCA confirmed an industry-wide redress scheme in March 2026, covering vehicle finance agreements taken our between 6th April 2007 and 1st November 2024.

To make the process as simple as possible, the onus is not on the driver. Lenders must identify affected customers and pay compensation through one consistent scheme. The FCA estimates that around 12.1 million car finance agreements could qualify.

Because the unfairness often came from commission deliberately being kept from the buyer, cases occasionally overlap with car finance fraud.

For a case review and advice
Book a 1 hour Consultation with the Civil Fraud Lawyer
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How do I know if I was mis-sold car finance?

You may have been mis-sold car finance if any of the following sound familiar:

  • You were not told the dealer would receive commission from the lender
  • Your interest rate seemed high or was set by the dealer and not the lender
  • There was an undisclosed tie between the dealer and a single lender
  • You were not asked enough about whether you could afford the repayments

If you bought a car, van or motorbike on PCP, hire purchase or similar agreements within the eligible dates, it’s worth investigating. You can do this yourself or use the expertise of a consumer car finance law specialist like Stormcatcher.

These are the broad signs of mis-selling but whether your particular agreement was affected will depend on its specific terms, the commission structure and what was communicated to you at the point of sale. Speak to our team to learn more about the options available to you.

We’ve created a useful guide to mis-sold car finance agreements that can help you establish if your agreement can be claimed on.

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What is the average mis-sold car finance payout?

The FCA has estimated that the average mis-sold car finance pay-out will be approximately £830 per agreement. However, this is only an estimate and final payouts will vary considerably. The size of your loan, length of your agreement, the amount of interest and the level of unfairness involved all help determine your compensation.

The larger or longer term agreements with higher hidden commissions tend to see larger compensation levels paid out. No automotive law firm, including ours, can promise a figure in advance. Reviewing your agreement is essential and is the only way an estimate can be made as to whether compensation is likely.

Mis-sold car finance: Current 2026 status

As of mid-2026, the FCA redress scheme is confirmed but has not yet paid out to anybody. This is because four legal challenges, three brought by lenders and one by a consumer body have paused the scheme while arguments are heard by the courts.

A decision is not expected until late 2026, meaning many drivers may not see a claim resolved until 2027.

This doesn’t stop you from acting now. You can register a complaint with your lender today so your claim is ready to progress once the scheme reopens. We’ll keep this page updated as the position changes.

What Our Customers Are Saying

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Lorraine Ballantine
September 8, 2026
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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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Dale Tierney
September 6, 2026
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I first spoke to Phil when I was a couple days out from submitting to court, and thankfully I did. Although I possibly could have still won he pointed out a few issues and told me to take the case forward in a different direction a stronger direction (alot stronger) than it originally was. With his and Antonia's advice along the way the case seemed to grow from strength to strength. After months had gone by, I won my case and I am fully paid up. your reassurance and guidance helped me get to this position so thank you. Highly recommend.
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Emma Nott-Macaire
August 26, 2026
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I’ve been dealing with a very stressful and complicated situation with my car and Antonia has been incredibly helpful today. She has been completely transparent, honest and incredibly knowledgeable. She has taken the time to understand the situation, clearly explain my options and give me practical guidance on the next steps, without making me feel pressured or trying to sell me anything. Antonia has been so generous with her time and advice and when you’re already dealing with a stressful and expensive situation, having someone who is genuinely willing to help and give straightforward, impartial advice makes such a difference. Thank you so much, Antonia, for all your help and support so far. It has made a difficult situation feel much more manageable. I would absolutely recommend Stormcatcher Law to anyone who needs honest, knowledgeable and genuinely helpful advice.
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Susan
August 14, 2026
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If your vehicle is not as described or not fit for purpose then I highly recommend you contact Stormcatcher Law. Fees are transparent from the outset (not high) and the service is professional. The initial video call with Philip for a fixed fee was worth its weight in gold to us. For some people I can see that this is all they need. The no-win no-fee alternative company would have cost us thousands more in fees and they don’t have the motivation to get anything more than a basic settlement. Philip must be one of the most experienced people in the field of automotive consumer law. If he thinks you have a case, he uses his clearly extensive knowledge to produce an argument that a dealer will ultimately find impossible to ignore. In our case (against a large motorhome dealer in Newark), Philip wrote numerous letters to the dealer detailing the legal precedents supporting the rejection of our motorhome. We bought our motorhome new in 2025 and the engine failed (oil pump failure) at more than the 6 month window meaning the burden of proof that the fault was existing at time of sale lay with us. As Fiat had agreed the fault was covered by the warranty AND that the repair had not been carried out in ‘a timely manner and without significant inconvenience’ Philip was able to construct a solid legal argument as to why we were entitled to reject the motorhome under the consumer rights act and receive a refund. The motorhome dealer refused to accept our legal grounds for rejection for a number of months but Philip pursued them confidently and consistently ultimately winning for us without the need to actually go before a judge. Even when the initial offer came in, Philip was confident we could achieve more for pecuniary losses and compensation - He doesn’t give up easily. However he respected and supported our decision to take the money and run! Philip was clear to us at the outset that he cannot represent clients in court but I get the impression most of his cases are resolved outside of court. We initially thought our only hope was the Motor Industry Ombudsman but now think they gave us lazy advice and this process would likely take months/years longer to resolve. The legal cover with our motorhome insurance policy couldn’t work out if we had a case or not! This situation had been incredibly stressful for us and had gone on for months before Philip quite literally took the load off us - we cannot thank Philip and Antonia enough. Prior to us engaging Stormcatcher, there was no hope of achieving any resolution. In desperation we had even written a begging letter to ask the dealer to make us an offer to take the broken motorhome off our hands but they declined. Of course the sum we ultimately got was far in excess of what we would have accepted at that point had it been offered. At point of settlement we were towards one year after breakdown and the vehicle is still not repaired due to lack of parts. Our vehicle was based on a Fiat Ducato. It is difficult to convey the gratitude we feel towards Stormcatcher Law. They genuinely seemed to care and wanted us to win. They are absolutely not a faceless legal firm.
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G9
August 7, 2026
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After watching some of Phil's videos on youtube I started the frustrating and downright pisstake that is trying to get a finance unwound on a faulty car. Whilst I have not yet solved this issue, the advice given in the videos was very helpful in getting the process started. I then called in to stormcatcher to get some further advice as I had hit a brick wall with the finance company. Phil took time out to speak with me personally and was very sympathetic, assuring and gave very helpful succinct advice for going forward. Such a kind hearted person. Its not often you find a company with such kind and helpful staff that actually know what they're talking about too! If you need help with car finance issues don't hesitate to contact them. Thanks again Phil, what a godsend.
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Emily White (Emily Lily)
July 30, 2026
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I had to call for some advice regarding the Consumer Rights Act, and I honestly couldn’t have asked for a better experience. I had the pleasure of speaking with Antonia, who was incredibly kind, patient, and understanding. As a new mum with a serious case of “baby brain,” I wasn’t explaining everything as clearly as I would have liked, but she never made me feel rushed or silly. She took the time to listen, understood my situation completely, and explained everything in a way that was easy to understand. It’s rare to come across someone who is not only knowledgeable but also genuinely compassionate. Antonia was an absolute credit to the firm, and her warmth made what was a stressful situation so much easier to navigate. I would highly recommend this firm to anyone looking for professional legal advice with a truly human touch. Thank you again, Antonia!
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Hawton House
July 26, 2026
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Antonia and Philip were amazing in helping me deal with my legal issues. I came to them with quite a complex situation regarding Car Finance and my Consumer rights and dealing with my insurance company. They went above and beyond to help me and Philip took the time to explain to me what was happening and why, explaining the process and making sure I understood what needed to be done. I feel like they took the time to understand me and my situation and genuinely wanted to help. My experience was filled with humility, understanding and every thing I was told would be done, was done in a timely manner, I was kept updated throughout the process. I could not recommend Stormcatcher enough!
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Lorna Starr
July 20, 2026
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My son and I are having a nightmare with a second hand dealer in the Uxbridge area. After less than a month and following an inspection it turns out that the Audi A3 we brought need either an engine rebuild or a new engine. We decided to reject the car only to be told that the dealer was not going to accept our rejection for various reasons not least because they believe we tampered with the engine! Apparently Service is tampering as is having the car inspected to work out why it burning oil at a rate of knots! Spoke to Antonia who was very reassuring and offered advice without any hard sell. Hoping the dealer will see sense before we have to go via small claims
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What should I do about mis-sold car finance?

If you think you have been affected, the first step is to gather as much information as possible. You can complain to your lender directly for free, escalating the complaint to the Financial Ombudsman Service at no cost if you are not happy with the response.

However, legal jargon, deadlines, negotiations and stress often mean that drivers prefer the help of legal experts. Stormcatcher is a specialist automotive law firm with genuine motor trade experience. We can guide you through the process and offer professional advice and support. If you have already decided to pursue compensation, we’ve outlined how to make a mis-sold car finance claim to help make things easier.

For a free, no-obligation chat about your car finance, call Stormcatcher on 0333 700 7676 or complete an online enquiry form and one of our team will be in touch.

Contact Stormcatcher Law for Expert Legal Advice

Mis-sold car finance FAQs

Possibly. The same commission rules apply to PCP, hire purchase and similar agreements. Our car consumer finance page explores this in more detail.

No. Checking or complaining about past finance agreements will not affect your credit rating.

Deadlines depend on the scheme and your circumstances. It’s best to register your claim as soon as possible to protect your position.

Philip Harmer

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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