The Financial Conduct Authority (FCA) is doubling down on its efforts to investigate a variety of mis-sold car credit practices that have had a significant impact on the industry. With this comes Reclaim 247, an emerging leader in advocating for consumers to know their rights regarding car financing and claiming financial justice in mis-selling cases. After years of having victims of questionable car finance arrangements come in to file claims, many consumers have realised they too may be entitled to car finance compensation claims. 

Discretionary Commissions Arrangements

At the centre of these issues are Discretionary Commission Arrangements (DCAs) which is a widespread but little-known practice that has been dubbed abusive, as it allows car dealers and brokers to adjust interest rates and intentionally inflate them to increase their commissions as well. 

What makes these arrangements unlawful is the excessive interest rate that brokers and dealers put on these loans, which also results in improving their earnings. With dealers being allowed to charge higher interest rates, they can secretly manipulate the amount they receive for commissions. Many customers are left unaware that they are being charged excessively while brokers and dealers are earning commissions at their expense. Reclaim 247 has been vital in helping customers determine signs of mis-selling that they should be able to identify. 

While DCAs have been banned since 2021, there have been numerous car finance agreements that were signed before this ban was made and implemented, which means there are numerous consumers who have been unfairly impacted. This means the regulator’s ongoing investigation into the mis-sold car finance in the UK can cause the country’s largest consumer redress. Misleading sales practices have been the reason why millions of drivers have unknowingly overpaid millions on their car loans. 

This is where Reclaim247 is best at – ensuring consumers become more informed about their car finance agreements and more confident to pursue their claims. The group has positioned itself as a trusted ally for drivers and consumers who are navigating the complicated and tedious process of making car finance claims. For Reclaim247, the mission is all about empowering individuals who have been misfairly treated to get them to recover the money they were owed. 

In general, DCAs are just a part of the broader pattern of unethical practices that continue to persist because of the lack of regulatory enforcement and consumer knowledge on it. The FCA’s firm stance on this issue allows companies like Reclaim247 to be more purposeful in playing a role in holding lending firms accountable and making sure that affected individuals don’t fall through the cracks. 

Reclaim247’s Role in Car Finance Mis-selling Claims

As an experienced claims management company, Reclaim247 has handled multiple financial claims. It focuses on mis-sold car finances in the UK, which enables it to guide consumers through identifying whether they were mis-sold, and gathering the necessary documents required when submitting formal claims. What’s even better with the firm is their no-win, no-fee model that ensures customers are able to take action without incurring any costs or legal barriers. 

Mis-selling has been amongst the most underreported issues in the finance industry for years. And while many consumers have trusted dealers to act on their behalf, it gave dealers the opportunity to take advantage and prioritise their interest over the clients. Many individuals were charged excessive interest rates that made these practices unlawful; however what many also did not realise is that these practices have made them eligible for refunds too. Often, the lack of awareness becomes the key driver behind Reclaim247’s outreach efforts, as it works to educate the public about their rights under the FCA guidelines. 

With the FCA putting in more efforts to address these car finance compensation claims, more people are becoming aware of how to uncover this misconduct. This action has also been crucial in changing public expectations on justice and openness in the car finance sector. As additional data surfaces, it is becoming abundantly evident how financially this scam has affected consumers. This is not just a small difference either. Also, this is not simply a minor discrepancy. Some individuals are even owed thousands of pounds brought about by unfair loan terms that they did not consent to during the initial agreement. In short, many fell victim brought about by the lack of transparency. 

Reclaim247 stands out as a company that is able to develop a secure, user-friendly claims process that helps consumers easily identify potential mis-selling in minutes. By entering simple details online in the eligibility checker, you can quickly determine if you are eligible to make a claim. From there on, Reclaim247’s team manages the entire process – from gathering data to dealing with finance providers and ensuring all necessary documentation is in place. 

Your Rights Under FCA Regulations

For many consumers, the idea of pursuing a financial claim can be intimidating. Eligibility is unclear, legal fees are feared, and documentation is confusing. By providing a free evaluation and only charging if a claim is successful, Reclaim247 has eliminated these obstacles. Reclaim247 was able to remove these barriers by offering a free assessment and only charging if a claim is successful. This commitment to accessibility and fairness is what sets the firm apart in a rapidly evolving claims industry.

You should also consider that car finance agreements signed as far back as 2007 may still be eligible for review, so if you were sold sometime in the past, and paid a hefty amount for such, then your case may still be eligible for review. One factor in determining whether it was discretionary is if it was not included and disclosed in the original agreement. If this was adequately disclosed to the customer, then it may not be considered as mis-selling. 

The FCA’s continued efforts have added even more urgency to the issue, and experts now predict a major wave of car finance compensation claims in the months ahead. Lenders and dealerships are also now under pressure to check and revisit past agreements and, where applicable, issue refunds. 

Alongside this is the extension of the complaint handling pause. Initially, the FCA had set an 8-week deadline for dealers to respond to customer complaints. However, this has been paused until December 4, 2025, to allow firms to provide better and more consistent outcomes for consumers while the FCA is completing its review. 

In April 2025 the Supreme Court heard an appeal regarding the legality of undisclosed commissions in motor finance agreements. This is a major case for the industry and a decision is expected by July 2025. Its outcome is likely to shape the FCA's approach to dealing with such consumer complaints.

The FCA will announce its findings in its investigation into discretionary commission arrangements (DCAs) after the Supreme Court decision. That might involve establishing a consumer redress scheme where the court finds widespread misconduct.