Mis-Sold Expert today announced the launch of a new review framework designed to help UK consumers assess their motor finance agreements following findings from the Financial Conduct Authority (FCA) that firms widely failed to disclose commission structures and key pricing information.
The framework is being introduced as the FCA prepares to implement an industry-wide motor finance redress scheme covering agreements entered into between April 6, 2007 and Nov. 1, 2024. The regulator estimates average compensation of approximately £829 per agreement, with total payouts expected to reach £7.5 billion.
What Has Changed
The FCA’s review identified widespread and systemic issues in how car finance agreements were sold, particularly around transparency. In many cases, consumers were not clearly informed that brokers could influence interest rates or that higher rates could increase commission payments.
These practices, according to the FCA, may have resulted in consumers paying more than necessary and being unable to make fully informed decisions. The regulator has confirmed that around 12.1 million agreements could fall within scope of the redress scheme, with most cases expected to be resolved by the end of 2027.
Introducing the Mis-Sold Expert Review Framework
In response, Mis-Sold Expert’s new framework provides consumers with a structured way to review their agreements ahead of formal lender outreach. The framework focuses on key indicators highlighted by the FCA, including:
- Whether commission arrangements may have influenced the interest rate
- Whether key pricing and broker relationships were clearly disclosed
- Whether the overall structure of the agreement could be considered unfair
The tool is designed to be accessible without specialist knowledge, helping consumers understand their position before lenders begin contacting affected customers.
Why It Matters Now
Although firms will be required to review agreements and contact eligible customers, Mis-Sold Expert emphasizes the importance of early awareness. Consumers who review their agreements in advance may be better prepared to understand compensation offers and respond more effectively.
Under the FCA’s framework, firms will assess whether an agreement created an “unfair relationship,” particularly in cases involving discretionary or undisclosed commission. Compensation will vary depending on the structure of each agreement, with the £829 figure representing an average rather than a fixed payout.
Who May Be Affected
Consumers who entered into Personal Contract Purchase (PCP) or Hire Purchase agreements through dealerships or brokers between 2007 and 2024 may fall within scope. The FCA has divided the review period into two phases — 2007 to 2014 and 2014 to 2024 — to reflect changes in market practices over time.
Not all agreements will qualify, but firms are required to assess each case against the regulator’s criteria.
Supporting Consumer Readiness
Mis-Sold Expert’s framework is intended to complement the FCA’s upcoming redress process by helping individuals evaluate their agreements independently. By reviewing documentation, understanding how interest rates were set and identifying potential gaps in disclosure, consumers can gain clarity ahead of formal notifications from lenders.
As the FCA begins implementing the scheme in 2026, the review framework aims to provide practical guidance during what is expected to be one of the largest financial redress exercises in the UK.
Media Contact
Leah Young
info@mis-soldexpert.co.uk
