You Could Claim Compensation for Mis-Sold Vehicle Finance.
- No-Win No-Fee
- Easy Application
In January 2024, the Financial Conduct Authority revealed significant evidence of mis-selling in UK car finance agreements, revealing brokers and dealers unfairly increased interest rates to earn higher commissions. This practice has led to thousands of pounds in overcharges for potentially hundreds of thousands of drivers.
Since the extent of dealers’ mis-selling became more prevalent, the issue has since gained traction by drawing widespread media attention and regulatory action. Legal action is under way, with cases being brought to court to challenge unfair practices in the selling of motor finance packages.
More recently, the Johnson and Others v FirstRand Bank Limited and Others case has brought further focus on these unfair practices, with court hearings examining the extent of hidden commissions and their impact on consumers. This case has now been granted permission for appeal in the Supreme Court. As legal challenges continue, affected drivers may have a strong case for compensation.
Barings Law have successfully represented thousands of clients in mis-sold finance claims, and we are ready to help if you believe you have been overcharged on your motor finance agreement.
Barings Law is currently representing thousands of clients in mis-sold motor finance cases.
Discover if you've been misled in your vehicle finance agreement.
You deserve transparency and fairness, and if your experience lacked these essentials, we’re here to help. You might have been affected if:
- You were not provided with any information about alternative options that might have been better suited to you
- You felt pressured into accepting a PCP (Personal Contract Purchase) agreement
- Details regarding the commission from your agreement remained undisclosed
- The loan amount exceeded the necessary sum without a clear rationale
- The dealer/broker failed to conduct affordability checks or discuss more affordable options tailored to your situation
- The estimated mileage limit provided to you was unrealistic and insufficient
- The dealer/broker did not adequately explain the agreement with you, including the terms and conditions, such as who is financially responsible for repairs
- It was not explained that you would not automatically own the car outright after the term
- You were not informed that missed or late instalments would lead to an increase in the interest rate on the deal
Your Path to Expert Legal Consultation.
Submit Your Claim
Case review
Our team will contact you to complete an assessment for eligibility.
Launch Claim
If eligible, we’ll start a no-win no-fee claim to recover your money from the responsible party.
Maximise Success
We work diligently to negotiate on your behalf, striving to achieve the most favourable resolution possible.
Frequently Asked Questions.
Which brokers and dealerships can I claim against?
Any broker, dealer or car finance provider that sold you a PCP (Personal Contract Purchase) or HP (Hire Purchase) agreement is covered.
In light of the FCA investigation, we have also opened up the criteria for motor finance compensation claims. If you had a PCP (Personal Contract Purchase) or HP (Hire Purchase) agreement between April 2007 – January 2021*, you are now eligible to submit a claim with Barings Law.
*If your lender is Moneybarn, Oodle, or Advantage, you are not eligible to make a complaint about discretionary commission arrangements. Instead, you may be eligible to make a complaint about the affordability of your finance agreement. To be eligible for this type of complaint your finance agreement must have been entered into between February 2018 and 2024.
My agreement has finished – can I still claim?
My agreement is still ongoing – can I still claim?
Can I claim for more than one PCP/HP contract?
Yes, you can claim for any PCP or HP agreements you have had between April 2007 and January 2021.
How much compensation will I receive for my mis-sold motor vehicle finance claim?
The compensation amount will vary on a case-by-case basis.
The amount customers have been overcharged will fluctuate, with the total depending on the cost of the vehicle, the interest rate applied, and the duration of the contract.
How much will it cost?
We are proud to offer a no-win no-fee service. We ask for nothing upfront and in the unlikely event that your claim is unsuccessful, you won’t have to pay a penny, providing you are honest and cooperative throughout the process.
If we are successful in your claim, Barings Law charge a success fee. This will be no more than 30% or £10,000 (excluding VAT), whichever is lower.
How is compensation awarded?
There are various ways that compensation can be awarded. These include:
- Cash compensation payments made directly to Barings
- Balance write-offs of the amount, or part of the amount, you owe to the defendant
If the defendant pays a lump sum directly to Barings, we will deduct our success fees and transfer you the remaining balance.
If the defendant offers you a balance write-off, and you don’t receive the damages directly, we will seek payment of our success fee directly from you. This will equal our success fee percentage of the amount which the defendant has agreed to write-off.
We appreciate that clients may not be able to pay all of our fees in one go. Therefore, we encourage our clients to contact us to discuss how they will pay our fees on a payment plan.
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Discover if you've been misled in your vehicle finance agreement.
Explore our full insights library.
As the Supreme Court judgment for the Johnson & Others case approaches, we look over the legal timeline of motor finance commission claims.
From April 1-3 2025, the Supreme Court heard the conjoined appeals of FirstRand Bank Ltd & Close Brothers Ltd v Hopcraft, Johnson and Wrench. This appeal is expected to have a significant impact on motor finance commission claims across the UK. Read what happened over the three days here.
The Supreme Court handed down a judgment in Rukhadze and Others v Recovery Partners representing a judgement that will have the potential to impact commission claims. Read more here.
