Claiming Car Finance Compensation After a Death — Can the Estate Claim?
Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.
If someone has died and you believe they had an eligible car finance agreement, their estate can still make a claim under the FCA motor finance redress scheme (PS26/3). The right to claim does not die with the agreement holder. This guide explains who can claim, what documentation is needed, and how the process works.
Does the Right to Claim Survive Death?
Yes. Claims that arose during a person’s lifetime and have not been settled pass to their estate. The executor or administrator of the estate has the right and responsibility to pursue outstanding claims on behalf of beneficiaries.
A person who died in 2022 having had a mis-sold Santander PCP in 2016 — their executor can submit a complaint to Santander on behalf of the estate. Any compensation received forms part of the estate and is distributed according to the will or rules of intestacy.
Who Can Submit the Complaint?Executor of a will: The executor named in the will has authority to manage the estate and make claims on its behalf.
Administrator (intestate): If the deceased died without a will, the administrator appointed through the grant of letters of administration has the same authority.
Next of kin for small estates: For small estates where no formal grant has been obtained, many lenders will process claims from the next of kin. Contact the lender’s bereavement team for their specific requirements.
What Documentation Is Needed?
When contacting the lender you will typically need: a copy of the death certificate; proof of authority to act — grant of probate or letters of administration; the deceased person’s full name, date of birth and address at the time of the agreement; vehicle registration or agreement number if known.
Lenders have dedicated bereavement teams and are experienced in handling these cases. The process is similar to closing any other account after a death.
Finding the Deceased Person’s Agreements
As executor you have the right to request a credit report for the estate. Search through bank statements for recurring monthly payments to finance companies. Search email archives if you have access. Submit a Subject Access Request to any lender you believe they used.
Scheme Timetable (Original Dates, Now Suspended)
Post-April 2014 agreements: Complain before 30 June 2026 → assessment by 30 September 2026 → payment by November 2026
Pre-April 2014 agreements: Complain before 31 August 2026 → assessment by 30 November 2026 → payment by January 2027
Final deadline: 31 August 2027
There is no bereavement extension to these deadlines. Estate claims follow the same scheme timetable as any other complaint.
Related Pages
Frequently Asked Questions
My father died three years ago. Is it too late to claim on his behalf?
No. The final complaint deadline is 31 August 2027. As long as you have authority to act for the estate and the agreement falls within the April 2007 to November 2024 window, you can still claim.
The estate was small and we never got probate. Can we still claim?
Many lenders process claims from next of kin on small estates without a formal grant. Contact the lender’s bereavement team and explain the situation — they will advise on their specific requirements.
The agreement was in joint names with the surviving spouse. How does that work?
The surviving named party on the agreement has full authority to make the complaint in their own right. Compensation from a joint agreement would typically be split between named parties — the surviving spouse receives their share directly and the deceased’s share passes to the estate.
You will be redirected to our partner’s website to complete your claim.
Think You May Have a Motor Finance Claim?
The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.
