Updated: 08 September 2025

Originally Published: 26 March 2025

CA Auto Finance UK Ltd has helped thousands of people get on the road through Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements. For many, these options made driving a new car feel more affordable. But with the car finance scandal now under the spotlight, CA Auto Finance is one of the lenders facing closer examination.

Concerns have been raised about hidden fees, inflated interest rates, and undisclosed dealer commissions. These issues have left many borrowers wondering if their agreements were mis-sold. If you took out a CA Auto Finance deal between 2007 and January 2021, you may be entitled to compensation.

Why is CA Auto Finance Facing Claims?

Discretionary Commissions and the Car Finance Scandal

At the centre of the scandal are discretionary commission arrangements (DCAs). These allowed dealers to adjust the interest rate on your loan. The higher the rate, the more commission they earned. Most customers had no idea this was happening, meaning many paid more each month than they should have.

CA Auto Finance has been linked to these arrangements. Beyond discretionary commissions, borrowers have disclosed hidden administrative fees, poorly explained balloon payments, and contracts with vague terms.

Lack of Transparency and Sales Pressure

Several drivers say they were rushed into signing agreements without considering other finance options. Others said they were pressured into deals whose real cost later proved much higher than expected. Those are now the issues that cause many CA Auto Finance complaints.

What Changed in 2025?

New legal and regulatory developments have strengthened the position of customers making a CA Auto Finance claim:

• FCA complaint pause: The Financial Conduct Authority (FCA) has extended its pause on commission-related complaints [1], including those involving CA Auto Finance, until 4 December 2025. You can still file a claim now, but most will not be reviewed until after this date.
• August 2025 Supreme Court ruling: The Court held that commissions are not automatically unlawful, but hidden or excessive discretionary commissions can still create an "unfair relationship" under consumer credit law. [2] That leaves many CA Auto finance claims alive and valid.
• FCA redress scheme consultation: In October 2025, the FCA will launch a consultation [3] lasting six weeks to decide how a UK-wide redress scheme should operate. Final rules are expected in early 2026, followed by compensation payments.

Am I Eligible for a CA Auto Finance Claim?

You can file a CA Auto Finance claim if your agreement was not explained properly or if costs were added without your knowledge. Many customers had no idea that dealers or brokers were paid commissions allowing them to make a poor decision about the loan. Others later discovered that the terms of their CA Auto Finance UK contract were unclear, misleading, or that their interest rate was set higher than it should have been because of dealer discretion. Some borrowers only learned of hidden fees, balloon payments or unfair penalties after signing, and others were pressured into taking the finance with no real alternatives. If your CA Auto Finance deal had a discretionary commission arrangement, the dealer may have jacked up your interest rate to boost their commission. When that happens, you could have grounds for a CA Auto Finance PCP claim and may be able to receive compensation.

How Much Compensation Could You Receive?

The FCA estimates that the average payout per customer agreement is around £950 for discretionary commissions. [4] That number varies depending on the loan type, the length of the agreement, and whether hidden commissions or fees were charged.

A successful CA Auto Finance claim could include:

• A refund of overpaid interest linked to inflated rates.
• Repayment of undisclosed commission.
• Refunds of unfair fees such as admin charges or penalties.

In some cases, extra awards if the mis-selling caused serious financial hardship.

How to Make a CA Auto Finance Complaint

If you believe you were mis-sold, the process is straightforward. Check your paperwork for hidden costs, inflated interest or vague terms. No longer have your contract? Request a copy from CA Auto Finance.

Send your complaint and evidence of mis-sold loans to CA Auto Finance UK, including your contract or payment records, explaining why you think your loan was mis-sold. 

If your complaint is declined or not acknowledged you have the option of escalating it to the Financial Ombudsman Service (FOS) who will independently review your claim. Although it is possible to make a CA Auto Finance claim yourself, many borrowers opt to work with a regulated PCP claims company or approach a finance claims expert who will handle the claim on a no win, no fee basis.

Frequently Asked Questions

Can I claim if my CA Auto Finance loan has already ended?

Yes. You can still bring a CA Auto Finance claim even if your loan has been fully repaid or the car has been sold.

What is the average CA Auto Finance compensation?

The FCA estimates average payouts of around £950 per claim, although some customers could receive more depending on their case.

How long does a CA Auto Finance claim take?

CA Auto Finance has up to eight weeks to reply. However, because of the FCA pause, most cases will not progress until after December 2025.

Is CA Auto Finance part of the wider PCP claims investigation?

Yes. The FCA’s investigation into mis-sold PCP and HP agreements includes CA Auto Finance contracts from 2007 to January 2021.

Can I make a CA Auto Finance claim if I don’t have my paperwork?

Yes. Even if you’ve misplaced your agreement, you can ask CA Auto Finance UK Ltd for a copy. Payment records, emails, or bank statements can also be used as evidence when making a CA auto finance claim.

Does a CA Auto Finance discretionary commission affect my eligibility?

If your contract included a CA Auto Finance discretionary commission, where a dealer raised your interest rate to earn more commission, you are likely to have strong grounds for a CA Auto Finance PCP claim.

Final Word

CA Auto Finance UK is among several lenders in the car finance scandal. Every PCP or HP deal you made from 2007 through 2021 may carry compensation.

With average payouts of £950 per agreement and an FCA redress scheme due in 2026, now is the time to check your documents and make a case. Complaints are suspended until December 2025, but acting early can help you secure CA Auto Finance compensation when the scheme begins.

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References:

1. Financial Conduct Authority (FCA) has extended its pause on commission-related complaints - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints 
2. The Court held that commissions are not automatically unlawful, but hidden or excessive discretionary commissions can still create an "unfair relationship" under consumer credit law - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. FCA will launch a consultation - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
4. FCA estimates that the average payout per customer agreement is around £950 for discretionary commissions - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator