The Impact of Recent FCA Guidelines on Car Finance Claims

The Financial Conduct Authority's recent guidance has sent shockwaves through the car finance industry, and for good reason. The FCA's findings confirm what consumer advocates have long suspected: widespread mis-selling of car finance products has left millions of UK consumers out of pocket.

What did the FCA find?

The FCA's review identified that discretionary commission arrangements — where dealers could set the interest rate on finance agreements and earn more commission the higher the rate — created a significant conflict of interest. This resulted in consumers being charged unnecessarily high interest rates without their knowledge.

What does this mean for your claim?

The FCA's findings significantly strengthen the legal basis for claims. Lenders who used these arrangements are now facing potential liability for the excess interest charged to customers.

What should you do?

If you purchased a vehicle on finance before January 2021, you should seek legal advice as soon as possible. Time limits apply to these claims, and acting promptly ensures you have the best chance of a successful outcome.

Sentinel Legal's team of specialist solicitors is ready to assess your case at no upfront cost to you.