Who Is Eligible for Car Finance Mis-Selling in the UK?

Eligibility for car finance mis-selling is often misunderstood. Many people assume it only applies if something went obviously wrong. In reality, eligibility usually depends on how the finance agreement was sold.

Eligibility is about the sale, not the outcome

You may be eligible even if your car finance agreement was paid in full, you never missed a payment, or you no longer own the car. Mis-selling focuses on whether the agreement was fair and transparent at the point of sale.

The agreement is fully settled
You never complained at the time
You believed the deal was standard
You paid every instalment on time

Commission and interest rate disclosure

Commission itself is not illegal. Eligibility issues arise when commission influenced the interest rate and this was not clearly explained to the customer.

You may be eligible if you were not told that the dealer could influence your interest rate or that higher rates meant higher commission.

Does the type of finance matter?

PCP (Personal Contract Purchase)

PCP agreements are most commonly linked to car finance mis-selling concerns. This is because customers are often encouraged to focus on monthly payments rather than the total cost of credit.

Related: PCP mis-selling explained →

Hire Purchase (HP)

Hire Purchase agreements can also be affected, particularly where interest rates were discretionary or commission was not disclosed. Simpler agreements are not automatically fairer.

Do you need paperwork to be eligible?

No. Lenders usually hold copies of finance agreements. Even if you no longer have documents, basic details are often enough for a lender to locate your agreement.

Are closed agreements still eligible?

In some cases, yes. An agreement does not always need to be active to be reviewed. Time limits can apply, but they are not always based on when the agreement ended.

What does not usually affect eligibility

Missing or late payments
Understanding finance terminology
Whether the dealer appeared helpful
Whether the car was new or used

What to do if you think you may be eligible

Understanding eligibility does not mean you must complain. It allows you to make an informed decision about what, if anything, to do next.

Next step: How the car finance complaint process works →

This guide is part of our complete explanation of car finance mis-selling in the UK.