Updated: 29 October 2025

Originally Published: 21 October 2024

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For many years, Toyota Financial Services has helped UK drivers buy new and used cars with flexible finance options such as Personal Contract Purchase (PCP) and Hire Purchase (HP). These products made it easier to spread the cost with predictable monthly payments.

In 2025, more customers are looking back at those agreements and asking a simple question. Was my Toyota car finance mis-sold? The rise in Toyota finance complaints reflects a broader industry review. Some agreements may have included hidden commissions, unclear explanations, or rates that did not match a customer’s credit profile. If any of that sounds familiar, you may be able to bring a Toyota finance claim or a Toyota PCP claim.

If you took out finance between 6 April 2007 and 1 November 2024, the Financial Conduct Authority’s ongoing work on a national redress scheme could apply to you. This guide walks through why Toyota finance commission complaints are increasing, the types of mis-selling the regulator is focusing on, and the practical steps to start a Toyota claim. You can do this yourself or work with a regulated finance claims expert if you prefer help.

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Why Toyota Finance is being reviewed

Toyota Financial Services has a strong reputation for convenience and wide availability through Toyota dealerships. That convenience sometimes hid complexity. In particular, many agreements were arranged using discretionary commission arrangements, often shortened to DCAs. Under a DCA, a dealer or broker could influence the interest rate on your loan. The higher the rate, the higher the commission they earned.

Many customers assumed Toyota set the rate purely from credit criteria. In some cases, the dealership had a direct incentive to nudge the rate up. That is the core reason you now see so many Toyota finance commission complaints and why customers are checking whether they paid more than they should have.

The FCA banned DCAs for new agreements in 2021 [1]. Older contracts are now being reviewed to see if they created an unfair relationship or were poorly disclosed. If you used Toyota car finance in the covered period, you may be able to seek a Toyota finance refund.

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What changed in 2025

Three developments shape the landscape for anyone considering a Toyota finance claim.

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Supreme Court ruling in August 2025 [2]

The Supreme Court confirmed that commission is not unlawful on its own. The problem arises when commission was hidden, excessive, or pushed up the cost for the customer. Where that happened, the agreement can still be unfair under the Consumer Credit Act. This matters for mis-sold car finance Toyota cases, because the question is not whether commission existed, but whether it was handled and disclosed in a fair way.

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FCA complaint pause until 4 December 2025 [3]

To ensure consistent outcomes while new rules are finalised, the FCA has paused final decisions on commission-related complaints. This includes Toyota finance complaints. You can still submit a Toyota car finance claim now. It will be logged and ready for review when the pause ends.

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FCA redress consultation in October and November 2025 [4]

The FCA is consulting on a national scheme that covers agreements made between 6 April 2007 and 1 November 2024. The aim is a single, fair process for calculating redress across all lenders, including Toyota Financial Services. Final rules are expected in early 2026, with Toyota finance compensation payments likely to begin later in 2026 once lenders apply those rules.

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How the FCA defines unfair car finance agreements

Under the consultation, a finance agreement may be considered unfair if it fits one or more of these three categories. The same definitions apply across the market and will guide how complaints are assessed.

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Discretionary commission arrangements

The dealership could set or influence your interest rate and earn more if that rate rose. Most customers were not told how that incentive worked in practice. This category sits at the heart of many Toyota finance mis-sold cases. If your documents say very little about commission or simply state that a commission “may be paid,” and your rate felt higher than expected, a DCA could be the reason.

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High commissions

Some agreements paid unusually large commissions to the broker or dealer. The FCA’s yardsticks include levels such as 35 percent or more of the total cost of credit, and 10 percent or more of the loan amount. Very high payments can distort the sale even if the contract included a brief line about commission. If you suspect a large commission influenced your pricing, it could support your Toyota finance claim.

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Restricted lender access

In some showrooms, quotes came from a single lender without a genuine comparison. If you were steered only to Toyota Financial Services without alternatives being explained, the sale may have limited your choice. Restricted access reduces your ability to secure a better deal elsewhere and may be treated as unfair.

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These three categories matter because your Toyota claim does not need to focus on hidden commission alone. High commission levels and restricted choice can also create an unfair agreement.

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How mis-selling usually happened

Every file is different, but patterns keep appearing in Toyota finance complaints:

• The dealer did not explain that they could earn a commission from Toyota Financial Services.
• Your APR felt high for your credit profile and no clear reason was given.
• You were offered only a Toyota finance option, with no real comparison across other lenders.
• You felt pushed to sign the same day with limited time to think.
• PCP features such as balloon payments, mileage limits, and end of term choices were not explained in plain language.

If one or more of these apply, you may have grounds for a Toyota finance claim, a Toyota PCP claim, or a Toyota finance refund.

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How Toyota finance compensation is calculated

The FCA’s proposed approach looks at two things:

• the commission that was paid to the dealer or broker, and
• the extra interest you paid because of that commission or the way the rate was set.

Current modelling suggests the following as market-wide indicators:

• Typical outcome. Around £700 per eligible agreement [5].
• Higher impact cases. Potential return of the undisclosed commission plus related interest.
• Adjustments. Refunds of unfair fees and simple interest on any redress.

These are not guarantees for any single Toyota finance claim. Your result depends on your agreement, the loan size and term, how the rate was determined, and the evidence in your file.

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Who can make a Toyota car finance claim

You may be eligible if any of the following apply:

• You used Toyota Financial Services for PCP, HP, or another regulated product between 2007 and 2024.
• Your documents did not clearly explain that commission existed or how it could affect your rate.
• Your rate looked high for your credit standing.
• You had no real choice of lender.
• You were not given a clear explanation of key costs and PCP terms.

Finished or settled agreements can still qualify. The question is whether the sale created an unfair relationship or lacked proper disclosure.

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How to make a Toyota finance complaint

You can handle this yourself for free, or you can appoint a finance claims expert or solicitor if you prefer support. The core steps are the same.

Step 1. Gather your paperwork

Find your signed agreement, pre-contract credit information, any finance examples or quotes, payment statements, and emails or letters with the dealer or Toyota Financial Services. If you do not have everything, ask Toyota for copies.

Step 2. Check for signs of mis-selling

Write down the APR, monthly payment, total repayable, and any fees. If this was a PCP, note the balloon payment, mileage allowance, and excess mileage charge. Scan for lines that mention commission. Language such as “a commission may be paid” can be too vague to support a fully informed choice.

Step 3. Explain what went wrong

Keep your note short and factual. For example:

• “I was not told that my dealer could adjust my interest rate to earn a commission. I believe this increased my costs on my Toyota Finance agreement. Please review my file, confirm whether a commission was paid, and refund any overpaid amounts.”

List what you want to happen. A fair review, a Toyota finance refund for overpaid interest and undisclosed commission where applicable, simple interest on any redress, and correction of any unfair credit markers.

Step 4. Send your complaint

Use email, post, or the online form on Toyota’s website. Keep copies of everything and note the date sent. A clear timeline helps if you later go to the Ombudsman.

Step 5. Wait for the process to move

In normal times, firms have eight weeks to respond. Final responses on commission-related matters are paused until 4 December 2025. Sending your complaint now ensures your Toyota claim is logged and ready for assessment once the pause ends.

Step 6. Escalate to the Ombudsman if you disagree

If you are unhappy with the outcome or do not receive one after the pause lifts, you can refer your case to the Financial Ombudsman Service within six months of the final response. The Ombudsman is free and independent and can direct the lender to pay Toyota finance compensation if it upholds your complaint.

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What a Toyota finance refund can include

If your Toyota finance mis-selling complaint is upheld, redress may include:

• Refund of overpaid interest where a discretionary structure increased your APR.
• Repayment of undisclosed commission paid to the dealer or broker.
• Refund of unfair or hidden fees, such as administration or option to purchase charges.
• Simple interest on any refund, typically the Bank of England base rate plus one percent.
• Correction of credit file entries where appropriate.

The market estimate of around £700 per agreement is a guide, not an entitlement. Larger loans, long terms, or high undisclosed commissions may produce higher outcomes. Smaller loans may lead to smaller refunds.

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DIY claim or use a finance claims expertcar finance claim

You do not have to pay anyone to make a Toyota car finance claim. Many customers prefer to handle it themselves. Others use a representative for convenience.

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Do it yourself

• Free route with full control.
• Best for straightforward, recent agreements when you have the paperwork.

You write the complaint, track the timeline, and escalate if needed.

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Use a finance claims expert or solicitor

• Helpful for complex cases, missing documents, or limited time.
• Often no win no fee, with typical fees between 18 and 36 percent including VAT of any redress.
• Must be FCA authorised. Read the client agreement so you understand what you will pay and when.

Using a representative does not change your eligibility. It can reduce admin and ensure your Toyota finance claim is presented clearly.

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Evidence checklist

• Send what you have today and request what you do not.
• Finance agreement and pre contract credit information
• Showroom quotes or finance examples
• Emails or letters with the dealer or Toyota Financial Services
• Payment statements and any settlement figures
• Brief notes of phone calls with dates and names
• Bank statements showing repayments if lender statements are missing

It is normal to begin with partial records. You can add documents as the review progresses.

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Key facts at a glance

• Covered period: 6 April 2007 to 1 November 2024
• Products in scope: PCP, HP, and other regulated Toyota car finance agreements
• FCA unfairness categories: discretionary commission arrangements, high commissions, restricted lender access
• Typical market outcome: around £700 per eligible agreement, case by case
• Complaint pause ends: 4 December 2025
• Final FCA rules expected: early 2026
• Proposed lender response deadline: 31 July 2026
• Compensation payments expected: late 2026

Frequently Asked Questions

Can I make a Toyota finance claim now?

Yes. You can submit a complaint today. It will be logged and assessed once the FCA rules are finalised in 2026.

Can I claim if my car finance has ended?

Yes. You can still bring a Toyota claim if your vehicle has been sold or the loan has finished, provided it falls within the covered dates.

How much Toyota finance compensation could I receive?

Market averages suggest around £700 per agreement. Your Toyota finance refund could be higher or lower depending on your loan size, term, and the commission structure used.

Is Toyota part of the mis-sold car finance investigation?

Yes. Toyota Financial Services is included in the FCA’s review of discretionary commission practices and related sales issues.

Do I need professional help to file a Toyota car finance claim?

No. You can complain for free directly and you can use the Financial Ombudsman Service for free. If you prefer support, you can appoint a regulated finance claims expert.

What if I already made a Toyota finance complaint?

If your complaint involves commission or interest concerns, it will remain paused until the FCA confirms its final rules. That does not harm your place in the queue.

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Final thoughts

Car finance should be clear and easy to understand. For some customers, it was not. Hidden incentives, limited lender choice, and brief disclosures meant certain drivers may have paid more than they needed to. The FCA’s consultation is designed to fix that with a single system and consistent standards.

If your agreement involved a discretionary commission, a very high commission, or restricted access to alternatives, you have a sensible reason to ask for a review. Start by gathering your documents and writing a short, factual summary of what happened and why it mattered to your costs. If you prefer support, a finance claims expert can organise the evidence and manage the steps for you.

Whether you go DIY or seek help, a well-prepared Toyota finance complaint gives the reviewer what they need to assess your position fairly. If your first attempt does not succeed, the Ombudsman route exists for a fresh look. The aim is simple. A fair Toyota finance compensation outcome that reflects what you should have paid under a transparent agreement, and a better experience for future borrowers across Toyota Financial Services and the wider market.

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References:

1. The FCA banned DCAs for new agreements in 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
2. Supreme Court ruling in August 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. FCA complaint pause until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
4. FCA redress consultation in October and November 2025 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
5. Typical outcome. Around £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme