Last Updated on: 4th September 2025, 06:55 pm
Motorists across the UK were hit with £8.1 billion in hidden car finance commissions between 2007 and 2021, according to data from TotalClaim.
Under Discretionary Commission Arrangements (DCAs), car dealers were able to adjust customer interest rates to increase their own earnings, often without properly informing buyers.
This practice was banned by the FCA in January 2021, but it affected 14.6 million car finance agreements, with customers paying an average of £1,100 more than necessary due to mis sold car finance.
- 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
