2.8 million Brits already seeking payouts from car finance scandal - are you owed cash?
Millions of Brits have already begun to find out if they're owed thousands of pounds having wrongly been mis-sold car finance.
This year motorists across the country could be in for a major windfall, with thousands of pounds potentially owed to them due to a car finance mis-selling scandal that's drawing comparisons to the infamous Payment Protection Insurance fiasco.
Many drivers have been left out of pocket for years. What's more, many of them don't even realise that they're owed cash. As a court case connected to the scandal nears its end, companies such as My Claim Group (MCG) can help you find out if you can claim.
This article contains affiliate links, we will receive a commission on any sales we generate from it. Learn more
Find out if you are owed £1,000s
without spending a penny
You can start a claim with My Claim Group to find out if you are due a big payout. It's easy and takes just minutes to complete.
My Claim Group
Click here to find out if you're owed money
At the heart of the scandal were undisclosed "secret" commissions paid by lenders to car dealerships, which have led customers to unwittingly sign up for finance agreements with jacked-up interest rates.
The full scale of the scandal has only recently emerged, with a significant UK Supreme Court judgement expected later in 2025. This decision will determine the extent of the repayments car finance lenders will need to make to their customers.
Find out if you're owed thousands of pounds today
Can I claim back cash?
If you purchased a vehicle through Personal Contract Purchase (PCP) or Hire Purchase (HP) before 28 January 2021, you might be entitled to claim back thousands. My Claim Group is on hand to assist those affected, or who suspect they might be, in reclaiming their cash. You can check how much you could be owed via My Claim Group.
The company suggests that as many as 40% of HP and PCP deals from 2007 to 2021 may have involved these covert commissions, indicating that you may have overpaid and could now be eligible for compensation. MCG has already supported vehicle owners in lodging claims that could average around £4,000 each, with 1.2 million claims processed so far.
What's the story behind the scandal?
Prior to the regulatory shake-up in 2021, a significant number of car finance deals were built on "discretionary commission arrangements." These setups allowed car dealers the freedom to dictate the interest rates of their offered finance deals.
The juicier the interest rate, the fatter the commission pocketed by the dealer. This arrangement led to an undeniable conflict of interest. Dealers were economically encouraged to flog loans at inflated interest rates to unsuspecting customers, chasing a plumper payday, regardless of whether such deals were the best fit for the consumer.
This often went down without the customer being any the wiser to the commission model steering their terms. Consequently, many consumers were saddled with pricier loans than necessary, oblivious to the fact that their loan terms were skewed by the dealer's eagerness to swell their own profits.
When did the dodgy dealings end?
The Financial Conduct Authority (FCA) introduced a ban on discretionary commission models in January 2021. This move was intended to hike up transparency and offer greater protection to consumers. It emerged that these questionable lending practices had been going on since as early as 2007, leading to a sweeping probe into the history of the lenders' methods.
A pivotal moment occurred in October 2024 when the Court of Appeal declared that the non-disclosure of commissions on car loans was illegal. This ruling broadened the scope for mis-selling claims, establishing a precedent that any hidden commission arrangements could now be a valid ground for consumer compensation.
This judgement triggered a wave of complaints, with the Financial Ombudsman Service recording an all-time high of 18,658 new car finance cases in the last quarter of 2024.
What's the current situation?
The scandal led to government intervention. In January 2025, UK Chancellor Rachel Reeves stepped in to intervene in the Supreme Court case to shield lenders from potential multibillion-pound payouts, voicing concerns about the wider economic implications and the possible impact on consumers' access to car loans.
At the same time, claims management firms like My Claim Group are urging consumers to lodge complaints. The Supreme Court is currently examining a crucial appeal by car loan providers, following earlier judgements that sided with consumers. The FCA has put a temporary halt on the complaints process until the court's verdict, expected later this year.
The result of this appeal will play a significant role in determining lenders' liability.
What can I do?
If you suspect you've been affected by the scandal, head over to the My Claim Group website for more information and start the simple process to find out if you're due a refund.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
44 minutes ago
- Daily Mirror
UK's cheapest seaside town surrounded by mountains where houses cost £103k
Famed for its whisky distilleries, nearby golden sandy beaches, and rich wildlife - this stunning seaside town is one of the cheapest in the UK, with homes costing as little as £103,000 A 'peaceful' seaside town tucked away in a deep bay and sheltered by a lush private island has seen its house prices plummet. Moving to the coast is the ultimate dream for many Brits, but due to skyrocketing demand and limited properties - waking up to crashing waves and golden sandy beaches comes with an unaffordable price tag. Take Sandbanks, for example, a stunning slice of the Jurassic Coastline in Dorset, where house prices average out at an eye-watering £965,708. However, if you're willing to ditch the lucrative south coast of England, you can get a lot more for your money. In fact, over in Campbeltown - situated on the scenic Kintyre Peninsula in Scotland, your new pad could cost just a fraction of the price. New data by Lloyds Banking Group found that average homes in the seaside town cost just £103.078 - an 11 per cent decrease compared to the year before. This is more than half of the average house price in the whole of the UK (£271,000), according to the Office for National Statistics (ONS). Once dubbed the whisky capital of the world, Campbeltown is still home to three active distilleries. Glen Scotia - one of Scotland's smallest whisky distilleries established in 1832 - still offers tours and tastings to the public. Springbank Whisky Distillers also operate in the town, and are the only place that carries out the entire whisky production process, including the traditional floor malting, maturation and bottling, on its premises. While Campbeltown doesn't actually have any of its own beaches, you'll be a stone's throw away from Westport Beach, which is often touted as the most 'beautiful' beach in Scotland. "Stretching over six miles, Westport Beach boasts the Machrihanish Dunes as its backdrop, a Site of Scientific Interest (SSSI) and the biggest sand dune area in Argyll," hails Visit Scotland. "Popular with surfers and dog walkers, West Port Beach is also a wonderful place to relax and enjoy a picnic. The beach is nestled alongside Machrihanish Golf Course, one of the finest links golf courses in the UK." For a more adventurous day trip, head over to the privately-owned Davaar Island. Here, you'll find a wealth of wildlife, including otters, dolphins, golden eagles, Peregrine falcons, and even Minke whales - as well as a pebble beach, and crystal clear waters. "There are still pockets of real affordability – particularly in Scotland, where buyers can find coastal homes for a fraction of the price," said Amanda Byden, Head of Mortgages and Lloyds. "For those willing to look beyond the traditional hotspots, there are some hidden gems offering great value and a strong sense of community." If you're not quite ready to ditch London for a more laid-back life on the coast, you can always explore Campbeltown on your next staycation. Located almost 550 miles from the Big Smoke, driving here will take you a whopping 10 hours in the car. You can get a train over to Oban, which usually consists of two changes and takes around eight hours and 12 minutes. Single adult fares can be bought from as little as £69.90. But, from here, you'll still be a two-hour drive away from Campbeltown - which is one of the most remote seaside towns in the UK. Despite its small size and far-reaching location, you'll still be able to find a wide range of accommodation in the town. For example, a weekend's stay (Friday, June 20 - 22) at the Argyll Arms Hotel will set you back £210. This is based on two adults sharing a Double Room, and including breakfast. For those wanting a more regal stay, check out the Royal Hotel Campbeltown. Here, you can stay in a Double Room on the exact same dates for £351.
Scottish Sun
9 hours ago
- Scottish Sun
UK's first garden city in 100 years is £3.9BILLION ‘major destination' with 15,000 homes, 50 parks & new supermarkets
The ambitious project could be completed within the next decade PARK LIFE UK's first garden city in 100 years is £3.9BILLION 'major destination' with 15,000 homes, 50 parks & new supermarkets Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HUGE plans to create the UK's first garden city in a century are underway. The ambitious proposals will transform unused land into a bustling green city and are slated to be finished in the next decade. Sign up for Scottish Sun newsletter Sign up 5 The new garden city will be the UK's first in a century Credit: Ebbsfleet Landmark Project Ltd 5 The plans will add 15,000 new homes Credit: Ebbsfleet Landmark Project Ltd 5 The city will be built by transforming unused land Credit: Ebbsfleet Landmark Project Ltd The idea for Ebbsfleet Garden City was born in 2015 following soaring demand for more houses in Kent. Costing almost £4 billion, the plans aim to create the first garden city in 100 years across 2,500 acres of brownfield land on the Kent Thames Riverside. Ebbsfleet will feature a staggering 15,000 new homes with 50 new parks and open spaces. Green and blue space will comprise 40% of the city by 2035, which is when the project is expected to be finished. It will, according to developers, become a place for Brits to "grow a family, build a business, socialise, and enjoy a unique city-country lifestyle on the edge of London and Kent." The planning application is expected to be submitted later this year. It will be made up of a collection of brownfield development sites within Dartford and Gravesham Boroughs. Three major projects comprise the Ebbsfleet Garden City: Ebbsfleet Central, Northfleet Embankment and Community buildings and spaces. Ebbsfleet Central will be a mixed-use residential and commercial area and will feature around 2,100 homes, of which 35 per cent are Affordable Housing. It will also include up to 100,000 square metres of office floor space and 10,000 square metres of retail floor space. Huge new £1.3billion redevelopment to create new 'cultural hub' in London This will be for restaurants, bars, cafes and supermarkets. A great option for commuters, Ebbsfleet Central is just 17 minutes from Central London. It is hoped that the revamped area will become a "magnet for inclusive economic growth" and a "destination of choice for investment and innovation". Ebbsfleet Development Corporation submitted the outline of the plans for the first phase of new development in Ebbsfleet Central in 2022. This includes building new leisure facilities, a new school and more open spaces for future residents. It also involves building the Eastgate Community Building in the middle of Springhead Park. This will be a church and a local community centre. It comes after Britain's newest town - built next to a major motorway - was set to cost a whopping £2.5billion with restaurants, shops and sports facilities. The Elms Park development, located in the north of Cheltenham, Gloucestershire, was approved by local authorities yesterday. Councils have given the go-ahead to the massive new town serving almost 9,000 people. It will be situated on the outskirts of the Cotswolds, just off junction 10 of the M5, and will feature roughly 60 acres for employment land. Tewkesbury Borough Council described the approval of the 4,115 homes as the "biggest decision" it had ever made. The plans include a 25-acre business park, a hotel, shops, cafes, new schools, healthcare facilities and a transport hub. Elms Park Consortium, led by house builders Bloor Homes and Persimmon, claims that the project will create as many as 8,000 jobs in the area. It estimates that the development will provide 1,000 affordable homes while generating up to £300m for the local economy each year. Rob White, agent for the applicant, said: "Approximately £25m will be spent on community infrastructure. 'It will contribute £300 million a year into the sub-regional economy, creating and supporting over 8,000 new jobs, with 30 apprenticeships a year during construction over 20 years. "Over 4000 new homes will be built, providing for a new community of around 9,000 residents, many of whom will already be living in the area. 'Approximately £50 million pounds will be spent on providing new schools, including a secondary school and two primary schools on site. 'A sports hub containing new facilities for cricket, football, tennis, and an all-weather 3G pitch will be provided on site along with significant contributions to local rugby and hockey clubs. 'They are committed to bringing forward Elms Park as a well-designed, sustainable and healthy place where the new community can thrive.' 5 It will also include up to 100,000 square metres of office floor space Credit: Alamy
Scottish Sun
11 hours ago
- Scottish Sun
Will you get fined if you're spotted using a disposable vape? Everything you need to know as ban comes into force
Scroll down to find out more VAPE A MINUTE Will you get fined if you're spotted using a disposable vape? Everything you need to know as ban comes into force Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BRITS could be fined hundreds of pounds following the government's recent disposable vape ban. A ban on single use e-cigs has now kicked in as part of a crackdown to stop kids getting hooked. Sign up for Scottish Sun newsletter Sign up 3 Disposable vapes are now banned in the UK Credit: Alamy 3 The aim is to prevent youths taking up the habit and to protect the environment Credit: Alamy The disposable vape ban has made it illegal for any retailer to sell single single use vapes online or in store after coming into effect on June 1. Only reusable vapes can now be sold as the government aims to prevent youths picking up the habit and protect the environment. But e-smokers may wonder whether they'll be fined if they're seen smoking one of the disposable devices. Under the new legislation, rogue traders who continue to sell disposable vapes will be fined £200. Serial offenders could face criminal charges of an unlimited fine or a prison sentence of up to two years. But these fines only apply to supplying disposable vapes. Those who have stocked up and are still smoking the devices following the ban won't be fined. As a result, online vendors were desperate to avoid being stuck with illegal stock before the deadline leading to huge discounts and fire sales. One site was boasting a "UK Vape Bargain Blast" ahead of the deadline, selling Flavaah Bar disposable vapes for 29p each, down from £5. The popular Elf Bar vapes were also down from a fiver at just 49p. In store outfits also saw users stocking up on single-use vapes. The Sun spoke to Douglas Eccles from Rustic Vapez before the ban was put in place, who agreed with the ban but noted how it left customers "panicking". Disposable vapes will be banned across UK by next summer to stop Britain's kids from getting hooked He said: "Everyone's panicking thinking all disposables are gone from Sunday, but it's not going to go that way. "A lot of people are bulk-buying them because a lot of shops are doing them really cheap because they know that any stock they've got from Sunday they've got to take off the shelves." But the ban could backfire with a slew of consequences, according to industry leaders. Experts fear the ban could result in vapes losing their original purpose as an aid to quit smoking. They warn that smokers who used vapes to help kick cigarettes may now return to the deadly habit. Even worse, they could turn to unregulated vapes which can have potentially serious health consequences. Instead, experts say the ban was a "disproportionate response" and looking at existing laws and education should have been considered first. Kate Pike, the lead officer for tobacco and vaping at the Chartered Trading Standards Institute, said it was a 'worry' that reusable vapes cost the same as disposables. She told BBC Radio 4's Today programme: 'It's a real worry that people will continue to use them as single-use disposable and therefore it won't help limit the damage to the environment.' Industry leaders have also warned that disposable products will soon be replaced with near identical reusable vapes as sellers scramble to get new legal models onto shelves. Additionally, campaigners We Vape said the new law will create a black market that is "impossible to enforce". Smoking vs. vaping VAPING has been touted as an effective tool to help people quit smoking. Though vaping is substantially less harmful than smoking, the habit isn't completely harmless and comes with its own set of risks. The NHS only recommends it for adult smokers, to support quitting smoking. GP and author Dr Philippa Kaye explained to The Sun that the differences between vaping and smoking - and whether one is better than the other - is "complicated". "In a nutshell, vaping is better than smoking, but breathing air is better than vaping at all." Vaping exposes users to far fewer toxins - and at lower levels - than smoking cigarettes. Switching to vaping significantly reduces your exposure to toxins that can cause cancer, lung disease, and diseases of the heart and circulation like heart attack and stroke. These diseases are not caused by nicotine, which is relatively harmless to health. But research has still linked vaping to a higher risk of failure and lung disease. Health risks of cigarettes Smokers are more likely than nonsmokers to develop heart disease, stroke, and lung cancer Smokers are at greater risk for diseases that affect the heart and blood vessels Smoking can cause lung disease by damaging your airways and the small air sacs Smoking can cause cancer almost anywhere in your body It affects overall health too, such as your mouth, eyes, immune system and fertility Health risks of vaping They can cause side effects such as throat and mouth irritation, headache, cough and feeling sick They could lead to tooth decay They could damage heart health They could cause lung disease They could slow brain development Read more on how vaping can affect your health here. Sources: NHS, CDC
