A recent investigation by the Financial Conduct Authority (FCA) has uncovered a major scandal in the UK car finance industry. The inquiry, which lasted almost a year, found that a significant number of car loans arranged by dealerships included undisclosed hidden commissions. This lack of transparency has left customers unaware of the additional costs involved in their financing agreements.

The findings of this investigation raise serious concerns about consumer protection within the sector. Car dealerships, which typically handle both vehicle sales and financing, may have breached the trust of their customers by not disclosing these commissions. As a result, there may be increased scrutiny and regulatory changes in the automotive financing market to better protect consumers.