What does car finance mis-selling mean?

Car finance mis-selling means a finance agreement was sold without clear, fair and transparent information. This can involve undisclosed commission, discretionary interest rates, or insufficient explanation of key terms.

Is car finance mis-selling illegal?

Mis-selling is not about illegality in every case. It concerns whether the agreement was sold fairly and transparently, in line with consumer protection rules.

Does mis-selling require dishonesty?

No. Mis-selling often occurs through omission, incentives, or lack of explanation rather than deliberate deception.

Does paying on time mean there was no mis-selling?

No. Payment history does not determine whether mis-selling occurred. The focus is on how the agreement was sold.

Are all car finance agreements mis-sold?

No. Many agreements were sold fairly. Mis-selling depends on the circumstances of the sale.

What Is Car Finance Mis-Selling?

Car finance mis-selling is a term used to describe situations where a car finance agreement was sold without proper transparency or fairness. It focuses on the sales process rather than the outcome.

Part of the complete guide: Car finance mis-selling explained →

Mis-selling is about the sale, not the result

A common misunderstanding is that mis-selling only applies if something went obviously wrong. In reality, it is about whether you were given clear, fair and complete information when the agreement was sold.

You may have paid every instalment on time and still have been mis-sold a finance agreement.

How car finance is usually sold

Car finance is typically arranged at a dealership. The process often focuses on monthly payments, deposits and affordability, while more complex elements such as APR, commission and total cost of credit receive less attention.

Where mis-selling concerns arise

Commission arrangements were not disclosed
Interest rates were discretionary but presented as fixed
The focus was on monthly payments only
Key information was omitted or unclear

Mis-selling does not require dishonesty

Many mis-selling concerns arise without anyone deliberately misleading the customer. Incentives, structure and omission can be enough to undermine fairness.

Why car finance mis-selling matters

Mis-selling matters because it affects how much interest you paid and whether you were able to make a fully informed decision.

Understanding mis-selling allows consumers to decide what, if anything, they want to do next.

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