Updated: 26 August 2025

Originally Published: 02 November 2024

Think you got a fair deal on your Audi finance? You might have been mis-sold, and here’s how to find out everything you need to know and claim what you're owed.

The Financial Conduct Authority(FCA) has revealed that Audi car finance is culpable of using Audi finance discretionary commission arrangements (DCAs) that allowed dealers to adjust, explicitly inflating the interest rates to customers. What constitutes mis-selling is the intentional omission of such information of commission to the customer, misleading the buyer about how this could impact them and the cost of their credit. This mis-selling included Audi car finance claims, too. 

In DCAs, dealers could freely increase their commission by inflating the interest rate, causing customers to pay more than they should have been paying or anticipated. When the FCA discovered this practice, it raised concerns about whether it was lawful and about the fairness of Audi finance PCP contracts and other similar Audi finance agreements.

How This Led to Mis-Selling Practices

Apart from DCAs, which were the main culprits of mis-selling tactics for a lot of lenders and dealers, the lack of transparency is another reason Audi finance was mis-sold. Terms such as interest rates and Audi finance settlement figures were not thoroughly explained, which caused misinformed decisions. This then led to financial stress on the buyer’s end, sparking numerous Audi Commission Claims. These mis-sold PCP Audi contracts left many customers facing inflated payments, large balloon payments, and unexpected charges for excess mileage.

Common Issues with Audi Finance Agreements

Like most car manufacturers, Audi provides a range of financing options to make their vehicles more affordable, including Personal Contract Purchase (PCP) agreements. PCP is a popular method of paying for a car because the monthly payments are lower than other options. However, a number of issues have been found to be common in Audi finance agreements. The issues relate to mis-selling and have left customers with finance agreements that have proven to be an expensive strain on their finances. If you believe you were mis-sold your Audi finance product, you could be able to make a claim. Below, we’ll discuss some of the most common issues with Audi finance agreements, particularly relating to PCP agreements, and what you can do if you believe you've been impacted.

1. PCP Mis-selling cases involving balloon payments

At the beginning of a PCP contract, a customer is told they can do either of the following as an end-of-term option:

• Return the car and walk away from the contract.
• Buy and own the car by paying the balloon payment.
• Part-exchange the car or trade it in for a newer model and roll the balance into a new PCP agreement. 

Hence, a common issue that arises from Audi finance PCP claims is the balloon payment at the end of the contract. A balloon payment is a large lump sum you’ll be required to pay if you decide to own the car at the end of a PCP agreement. The balloon payment is certainly expensive and can even make the car acquisition heavier than if you get it through other car financing options. This is why it's essential that the balloon payment be explained thoroughly at the start of the agreement. Customers should be fully informed about the size of the balloon payment and the impact it will have on their finances at the end of the term. 

Here’s what causes the problem with balloon payments:

• Lack of transparency

Mis-sold Audi deals are often brought about by failing to clearly explain what balloon payment is and that it will be a substantial sum. Audi dealers would instead focus on the lower monthly payments to make the deal more attractive at first glance, leading to confusion about when the balloon payment is due. 

• Misleading Financial Projections

Some Audi dealers make customers believe they can afford the balloon payment, intentionally misleading their financial projections. This leads to a significant financial strain due to the inability to afford payment at the end of the term. 

• No clear alternatives

Customers aren’t presented with options correctly, which is why you will think you are required to pay the balloon payment when there are other options, like returning the car and walking away without paying the balloon payment.

The lack of transparency forces customers into a situation where they think they have no choice but to either find a way to pay the balloon or enter into another finance agreement. Situations like this lead to a PCP claim, as customers can feel they were misled about how much the car finance deal truly is, particularly the balloon payment, which wasn’t clearly outlined during the sale. 

2. Mileage Caps and Charges

Mileage caps are another common issue that arises from Audi PCP finance agreements. Audi cars are particularly good for driving long miles, but if you’re getting one from a car financing agreement, you should check about the mileage cap. It’s a limit on how many miles you can drive during a contract term. 

Should you exceed this mileage, you could be hit with penalties or excess mileage charges when the contract ends.

What causes mileage cap problems in Audi PCP agreements, then? Here, we’ll break them down. 

• Unclear Mileage Terms

There are cases where Audi customers are told to set a lower mileage limit, as it will also lower their monthly payments; however, what customers do not understand is the consequences of these restrictions. When mileage is not properly explained, customers will think it’s just another way to make the deal cheaper. 

• Unexpected fees and penalties

PCP customers who go over their mileage limit will be charged mileage penalties, which can often look excessively high. As per reports, excess mileage limits are charged up to 25p per extra mile, and depending on the dealer, it can be higher. This penalty can quickly add up, causing a significant increase in your total credit. 

• Unrealistic Mileage Limit

Sometimes, to make the customer agree to the contract, dealers lure them with lower monthly payments, which are brought about by smaller mileage limits. When not properly advised, the buyer could end up exceeding the mileage and face hefty financial penalties. Customers may be under pressure to sign without knowing what they’re getting into. 

If you feel that the mileage cap was not properly explained or that the excess mileage charges were excessive, you may have grounds to file a PCP Audi claim. Audi customers who were misled about the mileage limits or faced unfair charges due to poor communication could be eligible for a refund or compensation.

3. Lack of Transparency and Unclear Terms

Apart from the specific issues of balloon payments and mileage caps, another usual problem with Audi finance agreements is unclear terms and figures. There are a lot of complex terms and conditions in PCP agreements, which should be explained correctly to customers so they know the ins and outs of their contract. If not properly explained, they may be bound to unfair conditions, causing mis-selling.

Here are the common scenarios:

• Interest rate discrepancies 

The way your interest will be calculated should be amongst the things your lender explains to you to avoid paying more than you owe. Some Audi finance agreements have unclear interest rates, leading customers to pay more than they should. If your interest was different from what was initially quoted, then you could be eligible for a car finance claim. 

• Additional Fees

There’s also a possibility that other fees will be added to your payment, like administration and penalty fees, which must not have been explained during the time of sale, as it may affect your decision to acquire the PCP contract. Other Audi finance claims are brought about by undisclosed fees, causing mis-sold terms. 

Can I claim compensation from Audi Finance?

To know if you are eligible for an Audi PCP contract claim, it depends on whether you will be able to prove eligibility. If you were affected by mis-sold Audi finance, you may be eligible for a refund or compensation. Customers who may be eligible for a refund are:

• Those Individuals with Audi PCP contracts were misinformed about their terms.
• Those who had discretionary commissions added to their loan agreements without full disclosure.
• Customers were charged a higher interest rate than necessary 
• People who took out Audi car finance agreements where PCP claims were involved weren’t made aware of all the terms, such as mileage restrictions or balloon payments.

In August 2025, the Supreme Court ruled that commission does not automatically make car finance contracts illegal [1]; however if Audi brokers or dealers were earning hidden discretionary commission or adding excessive interest rates to cover commission costs, then it could be an “unfair relationship” under consumer credit law. This means many Audi finance complaints are still valid and active, but it is down to individual cases whether the driver has an Audi claim that is impacted by hidden or unfair commissions.

How to Check Your Agreement for Hidden Commission Fees

You may still have options for filing a claim on settled car finance agreements if you believe you have been mis-sold the deal or charged unfair fees. No one should risk being stung by hidden commissions or extra charges,  so it is essential to read through an agreement when signing up for one, such as a Personal Contract Purchase (PCP) from Audi. If these charges have been included in the small print, you could unwittingly drive up the overall cost of your financing package. Dealerships sometimes net discretionary commissions that are not always fully disclosed, depending on the applied interest rate or how much the dealership borrows.

What is the process for claiming a refund from Audi Finance?

Check your Audi finance for mis-sold terms, call Audi finance and raise your concerns, and make a formal Audi PCP finance claim and, if necessary, escalate the claim to the Financial Ombudsman Service. Follow this step by step process. 

1. Review Your Audi Finance Agreement

The first step in determining whether your Audi finance agreement contains hidden commission fees is to carefully read the contract. Focus on the sections that discuss fees, interest rates, and dealer commissions. A step-by-step guide to identifying any hidden commissions in your Audi loan deal can be seen below.

• Interest Rates: The rate of interest you will be charged on your financing agreement is laid out in the contract. It is a good idea to compare this rate with usual market rates for similar Audi financing options. Other charges, such as unstated commissions, might be present if the rate quoted to you is significantly higher.
• Dealer Commissions: Although the dealer commissions aren't normally disclosed in the contract, it's still important to look for any language that can point to additional fees or hidden costs. Dealer commissions can be tied to terms such as "dealer fees" or "administration charges" that were not disclosed at the time of signing.
• Fees and Charges: Look over the contract for other up-front fees, administration costs, or hidden charges. These fees could have been added to artificially inflate the total amount you owe over the course of the contract. These payments could be a red flag for a secret commission deal if they were not disclosed.

2. Interest Rate: Compare with Market Rates

The interest rate associated with your financing deal is another factor worth monitoring when looking for hidden fees. You will need to discover whether your interest rate matches up with market expectations for similar Audi loan plans (rates will fluctuate in accordance with different criteria like your credit history and the type of car you’re buying). You may also need to conduct a little further research to see if there has been any impact on the terms of your contract from hidden commissions, in the case that your fee is significantly higher than market rates with no obvious explanation.

By doing these things, you can save yourself unnecessary additional costs and ensure greater transparency in your financing contract.

How to Compare Interest Rates

• Research current market rates: To check average interest rates on Audi finance deals, search online auto finance comparison sites. The dealership could have increased the interest rate on your PCP deal in a bid to get a larger fee from the financing company if it is considerably higher than average for comparable cars or financial products.
• Ask for clarification: If you're not sure what the interest rate is or think it's more than you expected, contact Audi Finance UK for a full explanation of the interest rate and what charges are being applied. A higher interest rate than is typical in the marketplace could indicate that the dealer has 'buried' extra charges in the agreement, or secured a lower rate in return for a higher commission.

If the interest rate is higher than the market average, it could indicate that the dealership negotiated the rate in order to get a higher commission or tacked on additional fees that were not clearly disclosed to you.

3. Check for Balloon Payment Details

The balloon payment (final large sum at the end of a PCP contract) is a significant hidden cost that may be associated with hidden commissions. Clients may not have been fully informed of the payment at the point of signature or that conditions were not fully disclosed. To search for potential anomalies consider the following:

• Clearly outlined balloon payment: The balloon payment should be set out explicitly in your contract. Mis-selling could be implied if it was not set out in your contract, not explained or is an exorbitant amount.
• Inflated balloon payment: Dealerships will try to set the balloon payment as high as possible. This will make the monthly payment look as low as possible, while actually costing you more in the overall agreement. This can also be connected to backhanders, as the dealer may have been offered commission on the amount of the finance, and the balloon payment was high.
• Transparency of the balloon payment: You may have been mis-sold the contract if you were not made aware of the balloon payment, exactly how much it would be and how that would have affected your final decision if you wanted to pay it, return the car or swap it.

4. Look for Unexplained Fees and Charges

The next step to revealing hidden commissions in your Audi finance contract is to examine your contract for any unspecified fees or charges. Dealers can add additional costs that aren’t obviously justified in the contract such as:

• Admin fees: fees for processing your account or application.
• Early termination fees: The costs you have to pay if you want to pay off the loan early or return the car before the end of the contract term.
• Excess mileage penalties: Additional charges that would be incurred by exceeding a stated mileage threshold, set unrealistically high compared to market practice, these would be structured to increase the total cost of the finance deal and, in turn, dealer commissions.

5. Seek Professional Help

If, upon reviewing your contract, you feel as though your Audi finance deal included hidden or unfair commissions then it may be worth seeking professional help. Using finance claims experts or car finance mis-selling specialists, you can find out whether you were overcharged.

• Financial Ombudsman Service: You can contact the Financial Ombudsman Service if you are unable to resolve a situation with Audi Finance UK yourself. They will be able to help investigate whether your finance arrangement was misrepresented to you or if you were unjustly charged. They also provide free, impartial advice.
• Claims Management Companies: Some firms specialise in helping clients acquire damages for misrepresented auto loans. These professionals can assist you in identifying hidden fees or commissions and guide you through the process of filing a claim for an Audi auto loan refund.

How Audi Finance Refunds Are Calculated

What compensation can I receive from Audi Finance? Generally speaking, the compensation you get is just a refund of the overpaid interest and other charges that you were charged from the mis-sold Audi PCP contract. However, the compensation you will receive is dependent on various factors, such as how you were mis-sold. Here are the other charges you should consider when calculating a refund.

• Overpaid Interest: Charges that were calculated at higher-than-necessary interest brought about by dealer commission can be refunded to you.
• Additional Charges: These are the excess mileage penalties and other unexpected fees that you were charged. 
• PCP Refunds: If you were mis-sold a PCP Audi contract, you could receive a refund for the excessive interest and charges. 

The amount you can refund will vary, but only because there are different cases of mis-sold agreements [2], and what you will receive is simply what you overpaid or the amount you were mis-sold. A customer who made a successful claim receives average payouts on PCP refund anywhere from a few hundred to over a thousand pounds, depending on the financial circumstances of their Audi finance agreement.

How much could I get refunded from Audi Finance?

The compensation from Audi finance claims will depend on the specific details of your contract. For instance, here’s a breakdown of what :

• If you were charged an inflated interest rate due to a hidden commission, you might receive a refund of the excess interest over the life of the loan.
• Excess mileage charges may also be refunded if these were not clearly disclosed at the start of the contract.

On average, Audi finance compensation for mis-sold PCP Audi agreements could range from £500 to £1,500 or more, depending on the duration of the agreement and the terms involved. The FCA has previously estimated that the average discretionary commission claim would see compensation of £950 per agreement [3]. The actual amount awarded will depend on the facts of each individual case and some drivers may receive substantially less. There are also examples of claims that could be worth several thousand pounds in redress.

Can I get a refund from Audi Finance?

Yes, if your Audi finance agreement was affected by mis-sold terms, such as hidden commission or unfair interest rates, you may be entitled to a PCP claim from Audi for compensation. Anyone who was mis-sold by Audi should file their car finance complaints [4] too. 

Thousands of Audi complaints are still very much alive and the outcome of these claims will depend on the facts of each individual case. The FCA is now poised to take the next steps on this issue. The regulator will launch a formal consultation in October 2025 [5] that will set out the details of how an industry-wide redress scheme would work. The FCA’s consultation process is expected to last six weeks, meaning the final rules may not be introduced until early 2026. If the plans are approved, the scheme could run over thousands of Audi car finance agreements sold between 2007 and 2021, which would give customers affected by the issue a guaranteed fair route to compensation.

Here's a step-by-step guide on how to claim a refund from Audi Finance if you believe you were mis-sold an Audi Finance deal.

1. Gather Your Documents

When starting a claim, the most important thing you should do is gather all relevant documents that are related to your Audi Finance Agreement, as these documents will serve as evidence for your claim. After all, it’s these documents that will support your claim and prove there was a mis-selling in the first place. 

You should collect the following:

• The original finance contract – This is the backbone of any claim, as it outlines all the terms and conditions of your finance agreement, such as interest, balloon payment, and other additional charges and fees. 
• Payment History – This is the record of your monthly payment, which shall show how much you were overcharged and the difference from your initially agreed amount. Documents like these serve as payment proofs for when your refund amount is calculated. 
• Correspondence with Audi finance or your dealer – This is any form of conversation you have had with Audi, like emails, letters, and phone conversations. Retain any written evidence that you have been sent information about the fees, terms and commissions. This will be of assistance to you in making your claim.

Having these documents on hand will make the process smoother and strengthen your case when you file your claim.

2. Check for Mis-Selling

When you have obtained all the relevant paperwork, then carefully go through your Audi PCP or other finance agreement, looking out for the signs of mis-selling. Be alert to the common problems which may indicate that your contract was mis-sold, for example: 

• Hidden commissions – Mis-selling can occur from hidden dealer commissions and fees that were not properly disclosed during the time of sale. Fees like this can sometimes be buried in the fine print or disguised as administrative fees so you won’t notice it, so be wary of it as well. 
• Inflated Interest Rates – The interest rate that was charged to you should be at par with the market rate for a similar Audi finance agreement; however, if this isn’t the case, and the rate is significantly higher, then it could indicate mis-selling. 
• Balloon Payment – The balloon payment should be clearly explained at the beginning and should be exactly how much you were told at first. This figure doesn’t change during the entire term of the agreement, and if you’re being charged a higher balloon payment, then this could be grounds for a claim. A balloon payment makes a deal more expensive, but if not fully transparent, this payment can be extremely huge. Balloon payments should also be properly presented so you know what you’re paying for should you decide to own the car. 
• Mileage Caps – In PCP and leasing claims, there are mileage caps that you should observe, as exceeding this limit will entail enormous penalty fees. If Audi did not discuss your mileage correctly and why it should be close to your realistic figure, then it could mean mis-selling. 

By carefully reviewing your contract for these issues, you’ll be able to identify whether you were mis-sold your Audi finance deal.

3. Contact Audi Finance

Once you've identified the issues with your agreement, it’s time to contact Audi Finance to express your concerns. You can start by either calling or emailing Audi Finance to explain that you believe you have been mis-sold your finance agreement.

Here’s what you should include when you contact Audi Finance: `

• Details of your complaint: How were you mis-sold? This is the first question your dealer will have once you have initiated a claim. This is why you should clearly outline why you believe the agreement was mis-sold and mention everything, such as high interest rates, hidden commissions, or lack of transparency regarding balloon payments and mileage caps.
• Request a refund or compensation: There’s no need for that fluff. Ask for a refund or compensation; that’s it. Just make sure that you ask for any overpaid interest or unfair charges that you were misled into the agreement. 
• Provide evidence: Keep and gather for submission all the important and relevant documents such as finance agreement, payment history, and any other supporting documents that demonstrate the mis-selling.

Audi Finance usually responds by investigating the merit of the claim, but note that it can take some time, so better to prepare yourself for that. Keep a record of all communications with Audi Finance for future reference.

The FCA has extended its stay of all commission-related complaints until 4 December 2025 [6]. Drivers are therefore still able to make Audi finance claims today, but in the majority of cases, these complaints will remain on hold until the regulator has completed its consultation and issued formal redress rules. The current pause is designed to give the sector regulatory consistency and avoid disparate decisions, but it also means claimants will need to wait for the FCA to finalise its plans.

4. File a Formal Claim

There are two things Audi can do upon receipt of your concern or complaint. One, offer a fair resolution, and two, do not respond at all. This is common in cases in which they don’t see merit. But if you don't get a response in a reasonable period of time, then the next action you can take is to make a formal complaint.

Here’s how to submit a formal claim:

• Write a formal complaint: Create a formal written complaint to Audi Finance, which indicates the details of the mis-sell and all the supporting evidence for your complaint. Attach your finance contract, payment history, and correspondence, and request a refund or compensation for any overpaid amounts, unfair charges, or mis-sold terms.
• In the claim, specify what your desired outcome is. Be clear about what you want to happen. Is it a refund, a reduction in the interest rate, or a compensation payment for the unfair charges? It needs to be indicated so the dealer knows what your complaint is asking of them. This also helps them get on the same page with you regarding fixing the problem. 
• Mail or online submission: Audi Finance may allow you to submit your claim either via their online portal or by mailing a physical complaint to their office. Just make sure that you keep copies of everything you send, as well as any responses you receive.

5. Escalate if Needed

If your claim is rejected or Audi Finance does not respond satisfactorily, then the next step is to appeal and escalate. To do so, it’s best to tap experts like the FOS and your chosen claim management company. Here are two things you can do:

1. Contact the Financial Ombudsman Service (FOS)

The Financial Ombudsman Service (FOS) is an independent body that caters to disputes that arise between consumers and financial service providers. This is the intermediary to which claimants go in cases where their claims are rejected or denied or when they feel they are not compensated rightfully. It’s the next best thing to do after being rejected. FOS will investigate the complaint and then offer you a fair resolution.

How to contact FOS

You can visit the FOS website to submit your complaint, as this is the easiest way to contact us directly. Just be sure to include all the details of your case, such as the original complaint to Audi Finance and their response. The FOS is an expert in scenarios like this, and they will assess the situation and help mediate a fair outcome.

Time limits

After receiving the decision from your dealer, or in this case, Audi, you have six months to bring or escalate it to the FOS. After this, the FOS will no longer accept your appeal. However, it’s always recommended to escalate right away to ensure that you meet all the deadlines. 

b. Legal Advice

If you are unable to resolve the issue with the FOS, or if you feel that the dispute involves significant sums of money, you may want to consult with a solicitor who specialises in consumer finance or mis-sold car finance agreements. Legal professionals can help you explore further options, including court action if necessary.

This guide provides a comprehensive overview of how to determine if you were affected by the Audi finance scandal. It also covers how to identify mis-sold Audi finance agreements and claim a refund. Whether you're pursuing an Audi PCP claim or another type of mis-sold Audi finance, the steps outlined here can help you secure compensation.

Frequently Asked Questions

Can I make a claim against Audi Finance?

Yes. If you were mis-sold a PCP car finance or hire purchase agreement through Audi Finance, you may be entitled to a refund.

What is the average payout for Audi Finance claims?

The FCA has suggested that the average payout in discretionary commission cases is around £950 per agreement, but some Audi Finance claims may be worth several thousand pounds depending on the loan and circumstances.

Can I still claim if my Audi PCP has already ended?

Yes. You don’t need to have an active agreement to bring an Audi Finance claim. Even if your PCP has finished, or you’ve sold or returned the vehicle, you may still qualify for compensation if the finance was mis-sold.

What happens if Audi Finance rejects my complaint?

If your Audi Finance complaint is refused, that doesn’t have to be the end of the road. You can escalate the case to the Financial Ombudsman Service, which will independently review your complaint and has the authority to award compensation if it rules in your favour.

Do I need professional help with an Audi Finance claim?

It is possible to make a claim yourself, but many people choose to use a regulated PCP claims company. These firms manage the paperwork, collect supporting evidence, and ensure deadlines are met, which can make the process easier and potentially strengthen your case.

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References:

1. In August 2025, the Supreme Court ruled that commission does not automatically make car finance contracts illegal - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. different cases of mis-sold agreements - https://www.bbc.com/news/articles/cgj7dy50p6vo 
3. the average discretionary commission claim would see compensation of £950 per agreement - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator
4. car finance complaints - https://www.fca.org.uk/consumers/car-finance-complaints 
5. The regulator will launch a formal consultation in October 2025 - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
6. The FCA has extended its stay of all commission-related complaints until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints