Already Signed Up With a Car Finance Claims Company? What Happens Now
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.
The FCA scheme is free — but if you have already signed a fee agreement with a CMC or solicitor, they will still charge you a percentage of your compensation if your claim succeeds. This guide explains what that means, what your rights are, and whether cancellation makes sense for your situation.
You Are Still Covered by the FCA Scheme
Signing up with a claims management company (CMC) or solicitor does not remove you from the FCA redress scheme. If your agreement is eligible, you will receive compensation — the only difference is that your CMC will take a percentage.
The practical difference is that your CMC will receive the lender’s communication, review the decision on your behalf, and either accept or challenge it. You remain the claimant.
Will You Still Be Charged a Fee?
Yes, in most cases. A CMC or solicitor’s fee agreement is a separate contract between you and them. The FCA scheme does not override it.
Typical CMC fees range from 15% to 36% including VAT of any compensation you receive. On an average £829 payout:
- At 18% including VAT: you receive approximately £680
- At 30% including VAT: you receive approximately £580
- At 36% including VAT: you receive approximately £531
The FCA has been explicit that consumers using CMCs for the redress scheme could lose over 30% of their compensation and that going directly is free.
Can You Cancel?
- Within 14 days of signing: statutory cooling-off period — cancel in writing at no cost
- After 14 days: cancellation fees typically apply for work already completed — check your original agreement carefully
- If cancellation fees were not clearly disclosed before you signed: you have grounds to complain to the CMC and then the Financial Ombudsman Service
To cancel: write to the CMC by email (keep a copy) requesting cancellation and asking them to confirm your account is closed and no fee will be charged. Get everything in writing.
What the CMC Must Do — Your Rights
All FCA-regulated CMCs must:
- Tell you about the FCA redress scheme and that you can access it for free
- Be transparent about all fees — including cancellation fees — before you sign
- Clearly state your net amount after fees in all communications about offers
- Not mislead you about likely compensation amounts
- Provide a 14-day cooling-off period
If your CMC has not met these obligations, complain to the CMC directly, then escalate to the Financial Ombudsman Service at financial-ombudsman.org.uk
What If You Signed Up With Multiple Companies?
The volume of unsolicited letters and emails about car finance claims has led many people to sign agreements with more than one CMC. This is a common problem.
- Cancel duplicate agreements within the cooling-off period if possible
- Outside the cooling-off period, each CMC may attempt to charge a fee — but your lender will only pay compensation once per agreement
- Report misleading practices to the FCA consumer helpline: 0800 111 6768
What If You Received a Letter From Locksley Law?
Locksley Law Solicitors (SRA Number 659355) was Claims Bible’s car finance claims partner until August 2026 — letters and emails from Locksley Law about car finance sent during that period were sent on behalf of Claims Bible. That arrangement has now ended. If you have signed a Locksley Law fee agreement, your agreement is with Locksley Law and continues under its own terms, so contact them directly — or email us at info@claimsbible.com if you’re not sure where you stand.
See our fees page for the full breakdown of what our partner firm charges and when — our own service costs you nothing.
Frequently Asked Questions
I signed up months ago and haven’t heard anything. What should I do?
Contact your CMC directly to confirm your complaint has been submitted and ask for a status update. Under the FCA scheme, the complaint pause ends 31 May 2026 — so responses are expected from that date onwards.
My CMC says I cannot cancel. Is that true?
Within 14 days of signing, you have an absolute right to cancel at no cost. After that, cancellation terms depend on your specific agreement — but any cancellation fee must have been clearly disclosed before you signed. If it was not, you can challenge it.
Can Claims Bible help me even though I am already with another CMC?
If you are within your cooling-off period with another company and want to switch, contact us. Outside the cooling-off period we would need to review your existing agreement before advising you.
Related Guides
FCA Car Finance Redress Scheme Explained
Locksley Law Letter — What It Means
Back to Car Finance Claims Hub
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.
