Updated: 04 September 2025

Originally Published: 21 October 2024

Toyota Finance UK has helped thousands of drivers spread the cost of their vehicles through Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements. But as the car finance scandal continues to unfold, more and more customers are asking: Was I mis-sold my deal?

Concerns about hidden fees, inflated interest rates and undisclosed commissions have already led to a rise in Toyota finance claims. If you financed a Toyota Finance PCP or HP agreement between 2007 and January 2021, you may be able to get compensation.

Why Are Toyota Customers Filing Claims?

Hidden Fees and High Interest

Some Toyota car finance customers have discovered extra costs buried in their contracts. Others got an interest rate higher than they expected. These hidden or unclear terms are now among the most common reasons behind Toyota Finance complaints.

Discretionary Commissions (DCAs)

Particularly problematic were discretionary commission arrangements. Dealers were allowed to set your interest rate, and the higher they made it, the more commission they earned. Most customers were never told this, meaning many ended up overpaying each month.

Lack of Transparency and Pressure Sales

Some drivers say they were rushed into signing and others were not given explanations about balloon payments or their PCP deal price. This lack of clear information is at the heart of many Toyota mis-sold car finance claims.

What Changed in 2025?

It's been a year of new rulings and regulatory updates directly affecting Toyota finance PCP claims this year:

• Supreme Court decision (August 2025) [1]: Not all commissions are unlawful. But hidden or excessive discretionary commissions still create an "unfair relationship" under consumer credit law. This implies that an enormous number of Toyota mis-sold car finance claims have not been made yet and could lead to a compensation claim.
• FCA complaint pause extended [2]: The Financial Conduct Authority (FCA) has given its confirmation that lenders can still freeze commission-related complaints until 4 December 2025. That includes Toyota Finance complaints. Customers can still submit claims now, but most will not be reviewed until after that date.
• Redress scheme consultation [3]: In October 2025, the FCA will consult on a UK-wide mis-sold finance redress scheme, on a six-week basis. Final rules are expected in early 2026, with the first Toyota Finance compensation payments likely to follow soon after.
• Average payout guidance: The FCA has suggested that the average refund for DCA-related claims will be around £950 per agreement [4], though some drivers may be entitled to far more depending on the value and length of their finance deal.

Am I Eligible for a Toyota Finance Refund?

Your Toyota car finance claim may be valid if:

• You were never told about dealer or broker commission payments.
• Your Toyota Finance PCP / HP agreement was misleading.
• You were charged a higher interest rate than required.
• You felt pressured into the deal without being shown fair alternatives.
• You later discovered hidden fees or penalties that were not explained.

If your contract included a discretionary commission model, you may have particularly strong grounds for a Toyota Finance PCP claim.

Toyota Finance Compensation: What Could You Receive?

The FCA has estimated that the average payout will be about £950 per customer. Some drivers will receive more, especially if their finance deal was long-term or linked to a higher-value vehicle.

Compensation may cover:

• Refunds of overpaid interest.
• Repayment of hidden or undisclosed commissions.
• Reimbursement of unfair charges, such as admin or penalty fees.
• Extra compensation where mis-selling caused significant financial hardship.

Real Examples of Toyota Claims

The Financial Ombudsman Service upheld a complaint against Toyota Financial Services in case DRN-4342140 [5] and ordered a refund, removal of adverse credit records, and compensation.

The FCA confirmed that Toyota Finance customers are included in the extension of the complaint pause until 4 December 2025, and will be part of the forthcoming redress framework.

These examples show that both regulators and Ombudsman processes are treating Toyota Finance PCP claims seriously.

What You Need to Know About Making a Toyota Finance Claim

• Check your agreement for hidden fees, inflated interest or unexplained commissions.
• Write to Toyota Finance UK with a complaint about a finance product you believe was mis-sold. Include copies of contracts, payment records or other correspondence where possible.
• If Toyota denies your complaint or fails to respond, you can file a case with the Financial Ombudsmen Service (FOS)).
• Although you can file a complaint on your own, many people opt for a regulated PCP claims company or a finance claims expert to handle paperwork, deadlines and evidence.

Frequently Asked Questions

Can I make a Toyota Finance claim if I’ve already paid off the loan?

Yes. You can still make a Toyota car finance claim even if the loan is finished or the vehicle has been sold.

What’s the average payout for Toyota Finance compensation?

The FCA expects the average refund to be around £950 per agreement for DCA claims, but some claims may be worth several thousand pounds.

How long does the process take?

Toyota has eight weeks to respond to complaints. However, because of the FCA’s pause, most cases will not move forward until after December 2025.

Do I need a solicitor to claim?

No. Many people submit claims themselves. However, using finance claims expert services can make the process easier and may improve your chances of success.

Is Toyota Finance part of the PCP claim investigation?

Yes. Toyota is one of the lenders covered by the FCA’s investigation into mis-sold PCP and HP finance agreements. If you had a Toyota Finance PCP claim between 2007 and 2021, you may be able to claim back hidden commissions or unfair interest.

What Toyota Finance Customers Should Do Now

If you had a Toyota PCP or HP deal between 2007 and January 2021:

• Review your finance documents.
• Check for signs of mis-selling.
• Consider making a Toyota Finance claim now.

Toyota Finance commission complaints are paused until December 2025, but preparing your case now means you're ready when the FCA launches its redress scheme in 2026. You could have been mis-sold a Toyota Finance refund of hundreds or thousands of pounds.

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References:

1. Supreme Court decision (August 2025) - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. FCA complaint pause extended - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
3. Redress scheme consultation - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
4. average refund for DCA-related claims will be around £950 per agreement - https://www.thesun.co.uk/money/36207624/get-pound950-car-finance-compensation/
5. Financial Ombudsman Service upheld a complaint against Toyota Financial Services in case DRN-4342140 - https://www.financial-ombudsman.org.uk/decision/DRN-4342140.pdf?utm_source=chatgpt.com