Financial Mis-selling — No Win No Fee

What Are Car Finance Commission Claims?

Direct Answer: Car finance commission claims (DCAs) arise when dealers received secret commissions from lenders without disclosing them to borrowers. The Court of Appeal ruled in 2024 that these undisclosed commissions were unlawful. Claims for PPI, SIPP pensions, and car finance can be brought on a no win no fee basis.

This is a rapidly developing area of law. In January 2024, the Court of Appeal ruled in Johnson v FirstRand Bank Ltd (t/a Motonovo Finance) and related cases that motor dealers acting as credit brokers owed fiduciary duties to consumers and could not receive commission from lenders without the consumer's fully informed consent. The FCA paused its review to await the Supreme Court's decision on the lenders' appeal, heard in April 2025.

Note: This is an ongoing and rapidly evolving area. The legal position may change following the Supreme Court's judgment. Consumers should seek up-to-date legal advice.

SIPP Pension Mis-selling

SIPP pension claims typically involve consumers who were advised by an Independent Financial Adviser (IFA) to transfer their defined benefit (final salary) pension into a Self-Invested Personal Pension (SIPP), often invested in high-risk, unregulated investments such as overseas property, storage pods, or carbon credits. Where the advice was unsuitable, the IFA's professional indemnity insurer or the FSCS may compensate the loss.

Redress Routes

• Direct complaint — to the firm that sold or advised on the product
• Financial Ombudsman Service (FOS) — independent adjudication for complaints against regulated firms (awards up to £430,000)
• FSCS — compensation of up to £85,000 if the firm is insolvent or no longer authorised
• Court proceedings — civil claims on CFA or DBA for larger or more complex cases