Hidden Car Finance Commission: A Ruling Expected as Lenders Set Aside Compensation

Strategic Insights -

Millions of drivers are expected to receive compensation after being charged hidden commissions on their car finance agreements between 2007 and 2021. The practice was banned after 2021, but a legal case continues to award affected drivers compensation. A ruling from the Supreme Court is expected, and the Financial Conduct Authority (FCA) has made plans for a redress scheme. Lenders, including the Lloyds Banking Group, have set aside money for expected compensation payments.

Key Takeaways:

  • The hidden commission practice on car finance agreements was banned after 2021, but a legal case continues to award affected drivers compensation.
  • My Claim Group believes those affected could be owed up to £4,000 in compensation for mis-sold car finance agreements.
  • The Financial Conduct Authority (FCA) has made plans for a redress scheme, and lenders have set aside money for expected compensation payments.
  • Drivers can claim compensation without professional representation, but working with a company like My Claim Group will provide access to expert support and experience.
  • My Claim Group's claim process is simple and user-friendly, and the company's panel of solicitors operate on a no-win-no-fee basis.
  • Successful claims are subject to a success fee, ranging from 18% to a maximum of 36% inclusive of VAT, dependant on the level of redress.

Statistics:

  • Millions of drivers have signed up with My Claim Group to help manage their case.
  • My Claim Group believes those affected could be owed up to £4,000 in compensation for mis-sold car finance agreements.
  • The Lloyds Banking Group has set aside money for expected compensation payments.
  • My Claim Group's panel of solicitors operate on a no-win-no-fee basis.
  • Successful claims are subject to a success fee, ranging from 18% to a maximum of 36% inclusive of VAT, dependant on the level of redress.

Sources:

  • My Claim Group: [www.myclaimgroup.co.uk](http://www.myclaimgroup.co.uk)
  • Claims Protection Agency Ltd: [www.myclaimgroup.co.uk](http://www.myclaimgroup.co.uk)
  • Financial Conduct Authority (FCA): [www.fca.org.uk](http://www.fca.org.uk)