How UK Drivers Can Get Refunds for Hidden Loan Fees

The long-standing practice of UK lenders paying car dealers secret commissions to sell their loans to motorists has come to a halt after a series of court rulings paved the way for refunds to millions of customers.

Banks and car manufacturers have set aside billions of pounds to compensate car buyers who unwittingly paid the unlawful commissions. Claimants can expect to be paid £829 on average, up from a previous estimate of around £775, according to the Financial Conduct Authority, which outlined the final shape of the compensation plan in late March. The regulator estimates that millions of individuals will receive refunds this year, with most to receive their money by the end of 2027.