Updated: 27 October 2025

Originally Published: 13 December 2024

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The UK car finance world is being tidied up at last. After years of questions about hidden commissions and confusing sales tactics, the Financial Conduct Authority has launched a national consultation to decide how compensation should work. Millions of older agreements are in scope, including loans arranged through dealerships and administered by Hyundai Finance UK.

If you used Hyundai vehicle finance for a Hyundai PCP or a hire purchase plan, you might be asking the same questions many drivers are now asking. Was my interest rate fair? Did a dealer’s commission shape the price I paid? Were the key parts of the agreement explained in a way I could actually understand? This guide keeps things practical and human so you can check your position and decide what to do next.

Nothing here guarantees a result. Across the market, typical refunds are expected to average around £700 per eligible agreement, but your figure can be higher or lower depending on your contract and your evidence. You can complain for free directly to the lender, raise a case with the Financial Ombudsman Service, or ask a regulated finance claims expert to help if you would like support.

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Why many Hyundai agreements are under review

Forecourt finance made car buying simple. You chose a car, the dealership arranged Hyundai vehicle finance, and you drove home with monthly payments that seemed manageable. What sat behind the monthly figure was not always clear.

Before 2021, many brokers and dealers used a Hyundai Finance DCA, which stands for discretionary commission arrangement. In plain English, the dealer could influence your interest rate. A higher rate often meant a higher payment to the broker. Most customers were not told how this incentive worked, which meant they could not judge whether the rate was fair.

The FCA banned this commission model for new business in 2021 [1]. Older loans are now being checked for fairness. That includes Hyundai car finance and Hyundai PCP agreements introduced by dealers and administered by Hyundai Finance UK.

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What changed in 2025

A few milestones explain why more people are looking again at their agreements.

The Supreme Court ruling.

In August 2025, the Supreme Court confirmed that commission is not automatically unlawful [2]. If the commission was hidden, excessive, or influential enough to change what you paid, the relationship between lender and borrower can still be unfair under the Consumer Credit Act. That keeps the door open for many Hyundai finance claim cases where disclosure was weak and costs were affected.

The FCA consultation.

In October 2025, the FCA opened a six-week consultation [3] to design a single national redress scheme covering agreements from 6 April 2007 to 1 November 2024. The aim is simple. One clear process. Consistent decisions. Less confusion for customers and firms. This applies across the market, including loans arranged through dealers and later serviced by Hyundai Finance UK.

Complaint handling timetable.

Final responses on commission-related complaints are paused until 4 December 2025 [4]. The FCA has also proposed a sector-wide deadline of 31 July 2026 for lenders to provide final responses once the rules are set. You can still submit your Hyundai car finance claim now so it is logged and ready for review.

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The FCA’s three types of unfair agreement

Your Hyundai finance PCP claim may fit one or more of these categories from the consultation.

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1) Discretionary commission arrangements

A broker or dealer could vary your rate and earn more when the rate went up. Most customers were not told this in a meaningful way.

2) High-commission structures

Even when a rate was fixed, some commissions were so large that they risked distorting the sale. The consultation highlights levels such as 35 percent or more of the total cost of credit or 10 percent or more of the loan amount.

3) Restricted lender access

Some brokers mainly offered credit from a single lender. If you were led to believe there was only one option, or alternatives were not explained, that can be unfair. This can include showroom sales that routed every application to Hyundai Finance UK without a proper comparison.

If any of these apply, your Hyundai claim may qualify for redress once the scheme is finalised.

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Simple signs your Hyundai agreement might have been mis-sold

You do not need to be a finance specialist to spot red flags. Many people discover issues by re-reading their paperwork with fresh eyes.

• The APR felt high for your credit profile and no clear reason was given.
• Nobody explained that the dealer or broker could earn a commission.
• You were told or nudged to use Hyundai Finance UK without a genuine comparison.
• The balloon payment on your Hyundai PCP was not set out in plain language at the start.
• Administration fees, early settlement charges, or option-to-purchase costs were vague or missing from the conversation.
• You were encouraged to sign the same day without time to compare offers.

If several points ring true, a Hyundai car finance claim is worth starting. You can do this yourself for free, or with help if you prefer.

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Who may qualify for a Hyundai refund

You could be eligible for compensation if the following feel familiar.

• The agreement was made between 6 April 2007 and 1 November 2024.
• The dealership or broker did not clearly disclose commission.
• The interest rate appeared higher than expected without a good explanation.
• Key PCP features such as the balloon payment and mileage limits were not described clearly.
• The overall circumstances created an unfair relationship under the Consumer Credit Act.

Redress usually focuses on the extra interest you paid because of the commission model and may also include the undisclosed commission itself in more serious cases. Many outcomes add interest on the refund at the Bank of England base rate plus one percentage point. When appropriate, unfair credit markers can be corrected.

Across the market, a typical outcome is currently estimated at around £700 per eligible agreement [5]. It is an estimate, not a promise. Your figure depends on the size of your loan, the commission structure, the term, and your usage.

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How compensation is likely to be calculated

The FCA proposes a hybrid approach that looks at both the commission and the interest impact.

• Typical outcomes. Around £700 per eligible agreement is the current market-wide estimate.
• Severe cases. Where very high commission is shown, proposals include returning the full amount with interest.
• Other elements. A Hyundai car finance refund can also adjust fees that were not properly explained and add interest on the redress. In some situations, credit file corrections may be appropriate.

This approach is designed to produce consistent results across all lenders, including Hyundai Finance UK.

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Step by step: how to bring a Hyundai finance claim

You can proceed on your own, use the Ombudsman, or appoint a professional. The steps are the same.

Step 1. Collect your documents

Find your agreement, pre-contract information, showroom quotes, and emails. If papers are missing, ask the lender or the dealer for copies. Include your agreement number if you have it.

Step 2. Sense-check the numbers

Write down the APR, the monthly payment, the total repayable, and any fees. If it is a Hyundai PCP, note the balloon amount, mileage limit, and the excess mileage rate. Compare this with what you remember being told.

Step 3. Put your complaint in writing

Explain the issue in plain English. For example:

• You were not told about a model that rewarded higher interest.
• The APR felt high for your credit standing and no reason was given.
• Key PCP costs were not explained in a way you could understand.

Say what you want to happen. A fair review in line with FCA policy. A Hyundai car finance refund of overpaid interest and any undisclosed commission where appropriate. Interest on redress. Correction of unfair credit markers.

Step 4. Submit the complaint

Send your letter by email, post, or via the lender’s web form. Keep copies of everything and note the date. This creates a clear timeline.

Step 5. Wait for the process to move

Normally a firm has eight weeks to respond. For now, commission-related final responses are paused until 4 December 2025. Submitting today ensures your complaint is logged and will be assessed once the pause ends.

Step 6. Escalate if needed

If you disagree with the outcome, you can refer the case to the Financial Ombudsman Service within six months of the final response. The Ombudsman is free and independent. It can instruct a lender to pay redress if it upholds your complaint.

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Should you use a finance claims expert

You can handle a Hyundai finance claim yourself from start to finish. Many people do. Some prefer to work with a finance claims expert because they have limited time, missing paperwork, or simply want help expressing their case.

A regulated claims management company or a solicitor can help you:

• Review your agreement and spot signs of mis-selling connected to a Hyundai finance DCA.
• Prepare a structured complaint with clear evidence.
• Manage the back-and-forth with the lender and the Ombudsman.

Fees are usually charged only if you receive compensation, often between 18 and 36 percent including VAT. If you appoint a firm, make sure it is authorised and regulated by the FCA, and read the client agreement carefully so you know what you will pay and when. Using a representative does not increase eligibility. It is simply an option for convenience.

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Evidence checklist

You do not need perfect records. Start with what you have and request copies for anything missing.

• Finance agreement and pre-contract credit information
• Showroom quotes or finance illustrations
• Emails and letters with the dealer or Hyundai Finance UK
• Payment statements and settlement figures
• Notes of calls, including dates and names

Even a Hyundai car finance settlement letter or a series of bank statements showing payments can help the reviewer follow your story.

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Key timeline for Hyundai cases

• August 2025. Supreme Court confirms that hidden or excessive commission can make a loan unfair.
• October 2025. FCA opens a six-week consultation on a national redress scheme covering agreements between 6 April 2007 and 1 November 2024.
• 18 November 2025. Consultation window closes.
• 4 December 2025. Pause on commission-related final responses ends.
• Early 2026. FCA expects to publish final rules and confirm calculation methods.
• 31 July 2026. Proposed deadline for lenders to issue final responses.
• Late 2026. Compensation payments expected to begin once the scheme is running.

Filing your complaint now means your Hyundai finance PCP claim or hire purchase complaint will be in the queue and ready to be assessed once the framework is live.

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Practical tips for a stronger complaint

Use clear headings so a reviewer can follow your story. Agreement details, what happened, why it mattered, what you want.

Include dates, names, and short call notes where you can.

Attach copies of statements, settlement quotes, and emails.

If your case relates to a PCP, say so. It helps route the complaint to a team that understands Hyundai PCP features.

Keep your tone calm and factual. That always helps the person reading your file.

If you have already paid the agreement off and only kept a settlement figure, include it. If all you have is a bank statement showing payments, include that. It is completely normal to begin with partial records. You can add more as the review progresses.

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Frequently Asked Questions

Can I make a Hyundai finance claim now?

Yes. You can submit a complaint today. Final responses are paused until December 2025, but logging your case now ensures it is ready to be reviewed when the pause lifts.

Does the consultation apply to PCP and HP?

Yes. Both Hyundai PCP and hire purchase agreements fall within the scope of the consultation.

How much could I receive?

The market-wide estimate is around £700 per eligible agreement. Some Hyundai pcp claim outcomes may be higher where commission was significant. Others will be lower. Nothing is guaranteed.

Can I complain if the loan has ended?

Yes. Finished agreements can still qualify if they fall within the consultation dates. A closing statement or settlement letter is useful evidence.

Do I need to use a representative?

No. You can complain for free. The Financial Ombudsman Service is also free. A representative is only needed if you want help gathering evidence or writing the complaint.

What is the difference between a refund and compensation?

A Hyundai car finance refund usually refers to the return of undisclosed commission and the interest that flowed from it. Hyundai compensation may also include statutory interest on the redress and correction of any unfair credit markers.

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Compliance and clarity

• Refunds are not guaranteed and always depend on individual circumstances.
• Average figures are market estimates, not entitlements.
• You can complain for free directly to the lender or through the Financial Ombudsman Service.
• If you use a third party, make sure it is FCA-regulated and that fees are clear before you sign.
• Final FCA rules are expected in 2026 and may adjust parts of the process.

Final thoughts

Buying a car should feel straightforward. For many people, the finance part did not. Hidden incentives and unclear explanations left some customers paying more than they should. The FCA’s consultation is the path to a consistent fix. It gives a clear way to check fairness and, where appropriate, to return money to the people who paid too much.

If your agreement involved a discretionary commission model, a very high commission structure, or limited access to alternatives, you have a fair reason to ask for a review. Start by gathering your documents. Write a simple, honest account of what happened and why it mattered. If you need help, a finance claims expert can organise the evidence and manage the process for you.

Whether you do it yourself or with support, a well-prepared Hyundai car finance claim gives the decision maker what they need to assess your situation properly. If your first attempt is not successful, the Ombudsman route is there to take a fresh look. The goal is the same for everyone. A fair outcome that reflects what you should have paid under a transparent agreement, and a better experience for future borrowers who deserve clear information from day one.

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References:

1. The FCA banned this commission model for new business in 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
2. In August 2025, the Supreme Court confirmed that commission is not automatically unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. In October 2025, the FCA opened a six-week consultation - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
4. Final responses on commission-related complaints are paused until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. a typical outcome is currently estimated at around £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme