Blue Motor Finance Car Finance Claim — PCP & HP Compensation 2026
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 you financed a vehicle through Blue Motor Finance between 6 April 2007 and 1 November 2024, you may be entitled to compensation under the FCA confirmed motor finance redress scheme (PS26/3, 30 March 2026). Blue Motor Finance is an FCA-regulated non-prime and near-prime lender that operated across independent and franchised dealer networks. Average payout: £829.
Who Is Blue Motor Finance?
Blue Motor Finance Limited is a UK independent motor finance lender specialising in near-prime and non-prime customers — people who may have been declined by mainstream lenders or had a less-than-perfect credit history. It operated across a wide network of dealer partners including independent used car dealers. Non-prime lenders like Blue Motor Finance are particularly significant in the PS26/3 scheme because customers with poorer credit profiles had fewer alternatives and were less likely to challenge high interest rates, giving dealers more cover to push rates higher under DCA arrangements.
Is Blue Motor Finance Covered by PS26/3?
Yes. Blue Motor Finance Limited is FCA-regulated and all regulated PCP and HP agreements it arranged between 6 April 2007 and 1 November 2024 are within scope of PS26/3. The complaint deadline is 31 August 2027.
Three Grounds for a Blue Motor Finance Claim
1. Discretionary Commission Arrangements (DCAs)
Prior to 28 January 2021, Blue Motor Finance dealers could vary your interest rate within a lender-defined range. In the non-prime market, DCA rate-setting was particularly aggressive because customers had fewer alternatives and were less likely to question a high rate.
2. Unfairly High Fixed Commission
Post-January 2021 agreements may qualify where the fixed commission met the FCA threshold of 39% of the total cost of credit and 10% of the loan amount.
3. Contractual Ties
Where Blue Motor Finance had preferential or exclusive arrangements with specific dealer networks that were not disclosed to the customer, the contractual tie ground may apply.
How Much Could You Receive?
The FCA confirmed average payout is £829. Non-prime agreements typically involve higher APRs and longer terms, which can produce above-average compensatory interest. Use our car finance claims calculator to estimate your specific payout.
Scheme Timetable (Original Dates, Now Suspended)
Post-April 2014 agreements: Complain before 30 June 2026 → determination by 30 September 2026 → payment by November 2026
Pre-April 2014 agreements: Complain before 31 August 2026 → determination by 30 November 2026 → payment by January 2027
Final complaint deadline: 31 August 2027
How to Complain
Submit your complaint to Blue Motor Finance Limited using the contact details on your original agreement or via the FCA’s official lender list at fca.org.uk/consumers/car-finance-complaints/list-lenders. Include:
- Your full name and date of birth
- Your address at the time of the agreement
- The vehicle make, model and registration number if known
- The approximate start date of the finance agreement
- A statement that you are complaining about undisclosed commission arrangements under the FCA motor finance redress scheme (PS26/3)
No paperwork? See: Claiming Without Paperwork
Related Pages
Multiple Car Finance Agreements
Frequently Asked Questions
I had bad credit when I took out Blue Motor Finance. Does that affect my claim?
No. Your credit history does not affect eligibility under PS26/3. See: Bad Credit Car Finance Claim
I financed a used car through Blue Motor Finance. Is that covered?
Yes. PS26/3 covers both new and used vehicle agreements. Used car finance through non-prime lenders was among the most affected by DCA rate-setting.
I financed after January 2021 through Blue Motor Finance. Am I eligible?
Yes. PS26/3 covers agreements up to November 2024 under the unfairly high fixed commission ground.
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.
