Refunds: FCA Investigation into Hidden Car Finance Commission”

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Potential for Refunds: FCA Investigation into Hidden Car Finance Commission


Did you purchase a car, van, or motorbike on Personal Contract Purchase (PCP) or Hire Purchase (HP) before January 28, 2021? If so, you might be entitled to reclaim potentially thousands of pounds. The Financial Conduct Authority (FCA) has launched a significant investigation into hidden and unfair commission practices in car finance agreements. This investigation has the potential to result in billions of pounds being refunded to millions of consumers who were overcharged on their interest payments.

Understanding the Issue:

Many consumers who have financed their vehicles through PCP or HP agreements may not be aware of the hidden commissions built into their loan agreements. These commissions, paid by lenders to dealerships or finance brokers, were often undisclosed or not transparently presented to consumers. As a result, individuals may have unknowingly paid higher interest rates on their vehicle finance agreements.

The FCA’s Investigation:

In response to concerns about these hidden commission practices, the FCA initiated a major investigation to uncover the extent of the issue. This investigation, launched on an official level on January 28, 2021, aims to gather evidence from firms across the automotive finance sector. The FCA is utilizing its enhanced investigatory powers to ensure thorough scrutiny of the industry’s practices.

Potential for Refunds:

The outcome of the FCA’s investigation could have significant implications for consumers who have taken out PCP or HP agreements before the ban on discretionary commission arrangements came into effect. If it is determined that consumers were overcharged due to hidden commissions, affected individuals could be entitled to refunds totalling £££££thousands of pounds.

What You Can Do:

If you purchased a vehicle on PCP or HP before January 28, 2021, it’s essential to stay informed about developments in the FCA’s investigation. Keep an eye out for updates from the FCA or relevant consumer advocacy groups. Additionally, consider seeking professional advice or assistance if you believe you may have been impacted by hidden commission practices.


The FCA’s investigation into hidden car finance commission represents a significant step toward ensuring transparency and fairness in the automotive finance industry. For consumers who have financed vehicles through PCP or HP agreements, this investigation offers hope for potential refunds of overcharged interest payments. Stay informed and proactive about your rights as a consumer, and be prepared to take action if necessary to claim what you’re rightfully owed register your claim with us today.