Important Mis-Sold Car Finance Client Updates
Bott and Co understand many of our clients are eager for updates regarding mis-sold car finance claims. At present, the financial regulators and legislators are in the process of deciding how these claims will be handled.
We appreciate that this may be frustrating and want to reassure you that we are closely monitoring developments. As soon as the final decisions are made and the process for handling claims is confirmed, we will contact you immediately with the next steps.
In the meantime we will share the key developments below. Please check back to this page for further updates.
Mis-sold Car Finance Updates
| Date | Significant Development | Client Instruction |
|---|---|---|
| 3rd August | Latest Update: FCA to consult on Mis-Sold Car Finance Redress Scheme | Await Updates from Bott and Co |
| 1st August | The Supreme Court announces its judgment on hidden car finance commission claims. | Await Updates from Bott and Co |
Mis-sold Car Finance Frequently Asked Questions
Mis-sold Car Finance Claims FAQs
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You are eligible to claim for mis-sold car finance if the salesperson failed to present all finance options, adequately explain the details of your contract, and the interest rates charged, make affordability checks or inform you if they would receive a commission.
The law states that the burden of proof is on the lender and/or the car dealership to show that they acted legally in all aspects of the process. You may be entitled to reclaim money for your car finance agreement if this cannot be proven.
Mis-sold car finance claims can be made for all of the following types of car finance agreements:
You can claim if your car was purchased using a personal contract purchase (PCP)
You can claim if your car was purchased using a hire purchase agreement (HP)
You can claim for all types of vehicles, including cars, vans, trucks, and motorcycles
You can claim for both new or second-hand vehicles purchased through finance
Claims can be made for agreements that are still active, and payments are being made
Claims can be made for agreements that have ended, and the vehicle has been paid off
You can claim for multiple vehicles at the same time
You can claim even if the vehicle was repossessed. -
You may be able to claim for mis-sold car finance if you bought a car or motor vehicle through PCP or HP finance between April 2007 and 28th January 2021, and the finance agreement was mis-sold.
Just add a few details and we can validate any car finance agreement you may have had going all the way back to 2007. https://www.bottonline.co.uk/mis-sold-car-finance-claims/form
We'll then tell you if you can claim and how much you might receive.
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The exact amount of compensation you may be able to claim for a mis-sold car finance agreement will be dependent on several factors, including:
The size of the car finance loan – generally, the larger the loan, the more you’ll be owed and able to claim back
The length of your car finance agreement – you’ll be owed more if you’ve been paying the loan for longer
The interest rate you paid and the difference between the rate quoted and the rate you should have paid.
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If the lender paid a commission but it wasn’t a Discretionary Commission Arrangement, then the case is affected by the recent Supreme Court decision.
If the lender paid a Discretionary Commission Arrangement for your agreement, the complaint will be paused until 4th December 2025.
After that date, the lender has a further 8 weeks to respond to confirm whether they agree to pay compensation.
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The Supreme Court ruled that consumers were unfairly charged interest on car finance deals where undisclosed commissions were paid to car dealers, potentially breaching the duty of transparency and fairness in consumer contracts.
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If your dealer arranged your car finance and you were not told about any commission they were receiving, especially if they could influence the interest rate, you may have been affected.
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Yes, potentially. Most claims relate to agreements signed between 2007 and 2020, before commission disclosure rules changed.
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No. You can still claim even if the finance has been repaid or the car has been sold, as long as you're within the legal time limits (typically 6 years from the end of the agreement or when you became aware of the issue).
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You can check and submit your claim directly with Bott and Co by visiting https://www.bottonline.co.uk/mis-sold-car-finance-claims
Many people may choose to pursue claims themselves directly through their lender or Financial Ombudsman Service (FOS).
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Our specialist team will review the Judgment in full and provide updates to all of our clients as soon as possible.
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Three potential scenarios that we can assume at this stage:
1. The Supreme Court agrees with the earlier ruling, which could mean millions of customers are owed compensation for finance deals where commissions weren’t properly explained.
2. The Supreme Court disagrees with the earlier decision, which would limit the number of people who can claim and likely restrict payouts to only specific types of cases already being reviewed by the regulator.
3. A middle-ground decision, where the Court may clarify the rules, meaning some people could still get compensation, but the number of eligible claims would be smaller.