The £15 Billion Car Finance Scandal: Who Will Pay the Price?

Introduction

City analysts are now predicting that the final bill for compensating UK drivers in the car finance scandal could exceed £15 billion. This staggering figure would make it the most significant consumer redress event since the PPI scandal. With the FCA and the Supreme Court firmly on the side of consumers, massive payouts are now a matter of when, not if.

As this huge liability looms over the financial sector, a key question arises: who exactly will be paying the price for this mis-selling?

Your Claim is Against the Lender, Not the Dealer

It’s a crucial point of clarity: although the conversation about your finance deal took place in a car showroom, your claim for compensation is made against the finance company—the lender—who underwrote the loan.

The legal and regulatory responsibility rests with the lender because they were the ones who designed, operated, and profited from the unfair commission structures that led to you being overcharged. The Supreme Court has affirmed that lenders are liable for the actions of the dealers who acted as their agents.

This means you don't need to worry if the dealership you bought your car from has since closed down or changed hands. Your claim is with the large, regulated financial institution that provided the credit.

Which Lenders Are Facing Claims?

The use of Discretionary Commission Arrangements and other secret commissions was an industry-wide practice. This means most of the UK's major car finance providers are involved. The list of liable institutions includes:

• Major Banking Groups: Finance arms of high-street banks like Black Horse (Lloyds Banking Group), Santander Consumer Finance, and Barclays Partner Finance.

• Manufacturer Finance Companies: The "captive" lenders tied to major car brands, such as Volkswagen Financial Services (for VW, Audi, Skoda), Stellantis Financial Services (for Vauxhall, Peugeot), BMW Financial Services, and Ford Credit Europe.

• Leading Independent Lenders: Other key players in the market like MotoNovo Finance and Close Brothers Motor Finance.

How This Affects Your Claim

Knowing your claim is against a major, regulated lender should give you confidence. These firms have been put on notice by the FCA to prepare financially for these payouts. Your role isn't to chase a small business, but to claim what you're owed from a large corporation.

PCPclaimDirect: We Know Who to Hold Accountable

You can pursue a car-finance complaint yourself, but many people prefer support to help with the paperwork. PCPclaimDirect offers an introduction to a specialist firm that manages the claim process for you.

• Accurate Submission: Your complaint is directed to the appropriate lender and logged correctly.

• We Have the Experience: Our specialist firm understands the arguments and evidence required to build a case against these firms.

• No Win, No Fee*: Our service means you can access our expertise without paying a penny upfront.

The price for this scandal will be paid by the lenders who facilitated it. Our mission is to ensure you get your money back.