Liverpool, UK. September 4th 2025 – UK motorists paid a staggering £8.1 billion in hidden car finance commissions over 14 years, with many completely unaware they were being overcharged, according to claims specialist TotalClaim.
Between 2007 and 2021, car dealers operated Discretionary Commission Arrangements (DCAs) that allowed them to increase customers’ interest rates and earn more commission – without disclosure. The FCA banned this practice in January 2021, affecting 14.6 million agreements where customers paid on average £1,100 more than necessary for mis sold car finance.
Five Warning Signs Of Being Overcharged
- 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
Scale of the Problem FCA research shows 95% of car finance agreements included commission models, meaning most motorists from this period could be affected by mis sold car finance. With average compensation of £950 per agreement, PCP claims could see total redress exceed £14 billion.
Taking Action Following the Supreme Court’s recent ruling confirming customers’ rights, TotalClaim offers a free 2-minute eligibility check for any car finance claim with no credit score impact. The no-win-no-fee process handles all lender communications, and PCP claims can proceed even without original paperwork.
The company covers 50+ UK lenders and has processed over 15,000 customer inquiries since launch, with eligibility rates exceeding 70%.
While the FCA prepares its industry-wide redress consultation, consumers can start their car finance claim immediately under existing legal frameworks.
To check eligibility for car finance compensation, visit https://totalclaim.co.uk/
ENDS