If you took out car finance through Blue Motor Finance before 2021, you could be entitled to compensation. Many customers were not told that the interest rate on their finance deal had been increased so a dealer or broker could earn more commission — a practice known as a Discretionary Commission Arrangement (DCA).

Who Are Blue Motor Finance?

Blue Motor Finance is a UK-based lender offering a range of vehicle finance options, including Personal Contract Purchase (PCP) and Hire Purchase. They work closely with dealerships, allowing customers to arrange finance directly at the point of sale.

Many of these agreements were set up with brokers or dealers who had the ability to adjust interest rates under a DCA. These arrangements have since been banned.

What Is a Mis-Sold Car Finance Claim?

A mis-sold car finance claim relates to cases where customers were not given clear or accurate information about their finance agreement. In the case of DCAs, brokers and dealers were allowed to set a higher interest rate to earn more commission — often without informing the customer.

This means you may have paid more than necessary over the course of your agreement, without knowing why. The Financial Conduct Authority (FCA) has announced plans to launch a redress scheme covering these types of complaints, with compensation expected to be paid from 2026.

If your finance agreement with Blue Motor Finance included a DCA that was not clearly explained, you may be able to claim back the difference between the interest rate you were charged and what you could have been charged on a fair, commission-free basis.

How Could Blue Motor Finance Have Mis-Sold My Car Finance Agreement?

Blue Motor Finance may have mis-sold your car finance agreement if it involved a Discretionary Commission Arrangement (DCA). These arrangements allowed brokers or dealers to increase the interest rate on your agreement, such as a PCP or Hire Purchase plan, so they could earn a higher commission from the lender.

In most cases, customers were not told that their interest rate had been inflated for this reason. If you agreed to a car finance deal through Blue Motor Finance without being clearly informed about how commission was being earned, your agreement may have been mis-sold.

DCAs were banned in January 2021, but many agreements arranged before then may still qualify for compensation. The Financial Conduct Authority (FCA) has confirmed it will consult on a redress scheme, with payouts expected from 2026.

You may be eligible to claim if your finance agreement included a DCA that was not properly disclosed to you.

How Much Can I Receive for a Blue Motor Finance PCP Claim?

If your agreement with Blue Motor Finance was mis-sold due to a DCA, compensation may be based on the difference between what you were charged and what you could have been charged had no commission been involved.

The FCA is currently deciding how redress will be calculated, but most payouts are expected to be under £950 per agreement. The exact amount will depend on the size of your loan, the interest rate, and the length of your agreement.

How Can I Start My Car Finance Claim against Blue Motor Finance?

If you believe your finance agreement included a DCA and the commission was not explained, you can check your eligibility online now.

You do not need any documents to begin. Just enter a few basic details and we can locate your eligible car finance agreements. Your claim will be handled by an SRA-regulated law firm on a no win, no fee basis.

It only takes a few minutes to get started.