If you have seen headlines about rising car finance complaints, it is natural to feel a mix of curiosity and concern. It can sound as though something significant is happening across the industry. It can also leave you wondering what those headlines actually mean for drivers who took out finance years ago.

This page looks at what the increase in complaints really tells us about car finance mis-selling. Rising complaint numbers do not suggest that mis-selling suddenly became widespread. More often, they reflect delayed awareness. Drivers are only now spotting issues that were buried in the detail of their agreements at the time.

We explain why complaint volumes are increasing, why so many relate to older agreements, and what this trend means if you are considering a PCP claim or a wider car finance claim today.

Key takeaways

• Car finance complaints are rising because more drivers are reviewing older agreements
• Higher volumes usually reflect awareness, not new mis-selling
• Many complaints relate to PCP and HP agreements taken out years ago
• Commission and interest rate structures have played a key role
• Complaint volumes influence future redress planning
• Drivers with agreements from 2007 to 2024 may still have options

Why car finance complaints are rising

More people are raising concerns about car finance now than they were a few years ago. That does not mean car finance mis-selling suddenly increased. Instead, it shows that drivers are becoming more aware of issues that were unclear at the point of sale.

For a long time, many drivers focused on affordability. Monthly payments looked manageable. Showroom conversations centred on price and availability. Few people stopped to question the structure of the finance itself.

As coverage of the car finance scandal has grown, more drivers have started looking back at those agreements. They are noticing features they did not fully understand before. They are also realising how complex some PCP agreements are once interest, commission, and end of agreement terms are taken into account.

That growing awareness naturally leads to more car finance claims, as people try to understand whether their own agreement may have been affected by mis-selling.

Why many complaints relate to older agreements

A large share of current complaints relate to agreements taken out years ago, particularly those signed between 2007 and 2024. These include both PCP and HP agreements.

There are several reasons for this pattern.

PCP agreements are complex by design. They involve more than monthly payments. Interest rates, final balloon payments, mileage limits, and condition rules often only become clear much later. Many drivers say they only understood these features when the agreement ended or when they tried to change vehicles.

Commission was another area that often lacked clear explanation. Many drivers were not told how interest rates were set, or that those rates could change within a range. Broker incentives were rarely discussed in plain terms.

For most people, this only becomes clear later. It is usually when drivers look back at the agreement, or learn how finance was arranged behind the scenes, that these details start to make sense.

Finally, many people did not realise their experience could form part of a car finance claim until regulators and consumer groups began discussing these issues more openly. Media coverage encouraged drivers to ask questions they never thought to ask at the time.

This explains why so many complaints relate to agreements that are no longer active. Awareness often arrives long after the sale.

Increased awareness, not sudden mis-selling

One of the most common misunderstandings is the idea that rising car finance complaints mean mis-selling is suddenly becoming more common.

In most cases, that is not what is happening.

Drivers now understand more about how these agreements work. They know monthly payments do not tell the whole story. They are aware of discretionary commission, unclear interest rate explanations, and missing disclosures. They also know they have the right to raise concerns when things were not explained properly.

As understanding improves, more drivers review their agreements. More reviews lead to more complaints. This pattern is common across financial services and reflects learning, not new behaviour.

The role of discretionary commission models

Commission plays a central role in many car finance mis-selling discussions.

Under some discretionary commission arrangements, brokers could adjust interest rates within a set range. A higher interest rate often meant higher commission for the broker.

The issue is not commission itself. The issue is disclosure. Many drivers say they were never told that commission could affect the interest rate they paid. Others say they were not shown how different rates would change the total cost of the agreement.

The FCA also highlighted concerns about unfairly high commission [1] and situations where drivers believed they were being shown multiple finance options, when only one lender was actually available. These practices affect transparency and choice, which is why they now feature heavily in PCP claims and wider car finance claims.

Why complaints tend to spike after regulatory attention

Complaint volumes often increase after regulatory attention. This follows a familiar pattern.

Regulators highlight an issue. Media coverage grows. More drivers become aware. More agreements get reviewed. Complaints increase.

This does not mean mis-selling suddenly occurred. It means drivers now have the context to recognise potential problems.

The same pattern appears whenever new guidance is published or consumer education improves. It is one reason complaint numbers matter when planning future redress.

What rising complaint volumes do and do not prove

Rising complaint numbers tell us that drivers are engaged and asking questions. They show concern and interest.

They do not prove that every agreement was mis-sold car finance. They do not guarantee compensation. They do not mean every complaint will succeed.

Each car finance claim is assessed on its own facts. What matters is what was explained, what was understood, and what evidence exists. Complaint volumes do not change that process.

They help regulators understand scale. They help inform policy. They do not determine individual outcomes.

Why complaint numbers matter for future redress planning

While volumes do not decide individual cases, they do matter at an industry level.

They help regulators identify systemic issues. They influence how future redress schemes are designed. They signal where transparency and explanation were lacking.

For drivers, this matters because individual experiences contribute to a wider picture. Agreements from 2007 to 2024 sit at the centre of that discussion.

What this trend means for drivers today

If your agreement falls within this period, rising car finance complaints help explain why your situation is now being discussed more openly. It does not guarantee a successful PCP claim or car finance claim. It does mean you are not alone in questioning what you were told at the time.

Some drivers start with a car finance refund check. Others explore whether pressure in the showroom played a role. You can read more about that here:

Does Pressure in the Showroom Count as PCP Mis-Selling?

Others look at whether the agreement itself may have been unfair:

What Makes a Car Finance Contract Unfair?

And many drivers who thought their agreement was too old check whether that assumption is correct: Is It Too Late to Claim? What to Know If Your PCP Deal Ended Years Ago

Staying cautious while exploring claims

As awareness grows, scams often follow. Not every call or message offering help is genuine. If you are exploring PCP claims or car finance claims update, it helps to understand the warning signs first: How to Spot PCP Claim Scams in 2026

Some drivers also consider using template letters. They can help, but they also carry risks: Are PCP Template Letters Safe to Use? What Drivers Need to Know

If a complaint is rejected, it helps to know what happens next: What Happens When Your PCP Claim Gets Rejected? Next Steps for UK Drivers

FAQs: Car finance complaints and what they really mean

Why are car finance complaints increasing now?

Most of the increase comes down to understanding, not new behaviour. Drivers are learning more about how interest rates, commission, and disclosures actually worked in practice. Once people understand those details, they often look back at older agreements and notice things that were unclear at the time.

Do rising complaints prove mis-selling?

No. Higher complaint numbers show that more drivers are asking questions and raising concerns. They do not prove that every agreement was mis-sold, or that every complaint will lead to compensation.

Are most complaints about PCP agreements?

A large number are. PCP agreements are more complex than they first appear and often include features such as balloon payments, interest rate flexibility, and optional extras. These details were not always explained clearly, which is why PCP agreements come up so often in complaints.

Should I make a car finance claim because complaints are rising?

Rising complaint numbers alone are not a reason to make a claim. What matters more is your own agreement and what was explained to you at the time. Reviewing your paperwork and understanding your experience is a better starting point.

Does a car finance refund check guarantee compensation?

No. A car finance refund check can help you spot potential issues worth exploring, but it cannot guarantee an outcome. Each car finance claim depends on the facts of the agreement and how it was presented at the time.

A summary for drivers

Rising car finance complaints point to delayed understanding and structural issues, not a sudden surge in mis-selling.

They show that many drivers did not have all the information they needed at the time. They show that awareness often comes later. They also show that people are now asking questions they were never encouraged to ask before.

For drivers, the key is not the headline numbers. It is what happened in your own agreement, and whether what you were told was clear and fair.

That understanding helps turn noise into clarity. It also helps you decide whether exploring a PCP claim or car finance claim makes sense for you now.

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References:

1. The FCA also highlighted concerns about unfairly high commission - https://www.fca.org.uk/publications/consultation-papers/cp25-27-motor-finance-consumer-redress-scheme