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Undisclosed commission claims for compensation

Undisclosed commission claims, otherwise known as ‘hidden’ commission claims, can be made where brokers have failed to disclose commission payments that were made to lenders who provided new business to them. This is because a failure to disclose the value and existence of a commission paid by a lender to a broker puts the broker in a position of a conflict of interest.

An independent broker should always act in their customers’ best interests, not the lender that they have a working relationship with. If your broker received commission payments from a lender that you were not aware of, then this is a breach of duty, and you may have a claim.

undisclosed commission claims

The acceptance of undisclosed commission is a fraudulent practice that can lead to individuals overpaying on loans and other financial services for the benefit of the broker. At Annecto Legal, our panel of solicitors are well equipped to advise and pursue undisclosed commission claims. Annecto Legal can also assist you in obtaining funding or insurance for your claim.


What is undisclosed commission?


Hidden commissions typically arise when an introducer, agent or finance broker sells you finance or a loan from a lender or bank. If the broker or agent received a secret commission for passing your details to the lender, and did not inform you of this, that is a hidden fee. The bank or lender must inform you of all fees within the transaction at the point of sale.

The broker owes a fiduciary duty to their client, including informing them of any profit they will make in the transaction. Financial brokers owe duties to their clients, such as:

  • Always acting in the interest of the borrower
  • Not being loyal to a specific lender or bank
  • Always disclose any profits made to their clients
  • Never enter a conflict of interest

If you believe that your bank or finance broker failed to do these things, you could be entitled to hidden commission compensation.


Undisclosed commission claims process


Following the Court of Appeal cases of Wood & Pengelly, the court can order the financial agreement to be rescinded or unwound, where it can be proven that the individual that borrowed the finances was at a disadvantage as a result of an unfair relationship or a breach of fiduciary duty.

This means that the borrower must be placed back into the position that they would have been in financially had they not taken the secured loan. They should receive interest as well as all fees and charges paid to the broker that they were not made aware of.

To strengthen the undisclosed commission claim, the client must provide details that prove that a broker did receive payment from a lender and that the client was not made aware of this. These details can include:

  • An admission of guilt
  • Confirmation from the third party lender
  • Payment history of paying commission
  • Written agreements such as emails


Who can Annecto Legal help with undisclosed commission claims?


Annecto Legal assists a variety of clients wishing to make undisclosed commission claims. If your broker was independent and they had a duty to provide you with impartial advice or information and received a hidden commission payment that you were unaware of before taking out a loan, we could assist you in making a claim.

Whether you have taken out a mortgage, car finance loan, a personal loan or any other finance agreement, if you were mis sold financial products with hidden payments that you were not made aware of, you could be eligible for compensation.

Unfortunately, due to the high costs of legal actions in the UK, we only assist in disputes which are valued at over £100,000, at the absolute minimum. We would like to be able to help on other claims, however we do not have access to any products that can assist on smaller matters.

If you have a dispute for the small claims court you may wish to check out the following government website: For larger claims you could try to find a solicitor that can assist you:


How can Annecto Legal assist with undisclosed commission claims?


We understand that it can be extremely frustrating if you have paid a commission that you were not made aware of.

Annecto Legal helps clients realise the value of their undisclosed commision claims. We work closely with litigation funders, insurers and lawyers that seek alternatives to the traditional hourly rate funding model.

Get in touch with an expert member of our team to find out which commercial litigation cover is the right litigation funding choice for you

Annecto Legal assists businesses and individuals accessing litigation funding and/or after-the-event (ATE) legal expenses insurance for these types of claims.

We are authorised and regulated by the Financial Conduct Authority as an appointed representative of 2direct limited. We are not a firm of solicitors nor a claims management company. We do not receive payments for passing enquiries onto firms of solicitors.

Please contact Annecto Legal now to discuss your claim, be put in touch with specialist solicitors or to get information about managing the financial risks of litigation in these types of cases.

Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS

London Office

71 Central Street, London, EC1V 8AB


0800 612 6587


Contact us directly