Company Car and Fleet Finance Claims — Are You Eligible?
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.
Finance taken out by a limited company is excluded from the FCA’s motor finance redress scheme. But this is not the end of the story. If you are a sole trader, a company director who personally signed the finance agreement, or an employee who personally arranged finance for a car used for commuting, you may still be eligible. The key question is not how the vehicle was used — it is who signed the agreement.
In this guide
- The Key Rule: Who Signed the Agreement?
- Company Directors — When You Can Claim
- Company Directors — When You Cannot Claim Through the FCA Scheme
- Fleet and Business Finance — Alphabet, Lex and Similar
- Sole Traders — Van and Car Finance
- Frequently Asked Questions
- Related Guides
- Our Partner's Fees Explained
- Think You May Have a Motor Finance Claim?
The Key Rule: Who Signed the Agreement?
The FCA scheme covers consumer credit agreements — meaning agreements entered into by an individual, not a company. The question is not what the vehicle was used for. The question is whose name is on the credit agreement.
The rules in plain terms:
- A limited company signed the agreement — NOT eligible for the FCA scheme, regardless of how the vehicle was used
- An individual personally signed the agreement — eligible, even if the vehicle was partly used for business (including commuting)
- A sole trader personally signed the agreement (loan under £25,000) — eligible
- A small partnership personally signed the agreement (loan under £25,000) — eligible
This matters because many company directors, particularly of small businesses, personally sign car finance agreements for vehicles they then use for business purposes. Personal signature = potentially eligible, even if the car was predominantly used for work.
Company Directors — When You Can Claim
If you are a director of a limited company and you personally signed a PCP or HP agreement for a car used partly for company purposes, the agreement may be within scope of the FCA scheme, provided:
- The finance was in your personal name, not the company’s name
- The agreement was between 6 April 2007 and 1 November 2024
- The vehicle was used for commuting or mixed personal/business use
- The loan amount was not excluded on other grounds
The company’s use of the vehicle is irrelevant for FCA scheme eligibility. What matters is the legal identity of the borrower named on the credit agreement.
Company Directors — When You Cannot Claim Through the FCA Scheme
If your company signed the finance agreement — meaning the borrower on the credit agreement is your limited company rather than you personally — the agreement is outside the FCA scheme scope.
If your company’s agreement falls outside the scheme, you are not without options. You can:
- Complain directly to the lender citing unfair practices — the Consumer Credit Act’s unfair relationship provisions may still apply in some circumstances to business agreements, though this is less certain
- Seek independent legal advice about whether a court claim is viable for your specific agreement
Fleet and Business Finance — Alphabet, Lex and Similar
Dedicated fleet finance products — such as those provided by Alphabet (BMW Group), Lex Autolease (Lloyds Banking Group), ALD Automotive, or Arval — are almost always contract hire or leasing arrangements, not PCP or HP. They are therefore outside the FCA scheme on two grounds: the borrower is typically the employer, and the product type is a lease rather than a credit agreement.
If your employer arranged fleet finance for your company car, the agreement is almost certainly a lease and not covered by the scheme. If you personally arranged a PCP or HP agreement for a car you also use for work, check whether the agreement was in your own name.
Sole Traders — Van and Car Finance
If you are a sole trader and you personally signed a HP or PCP agreement for a car or van used for work, you may be eligible provided the loan was under £25,000. This is a specific exemption built into the Consumer Credit Act — sole traders with loans under £25,000 are treated as consumers for the purposes of the scheme.
Van finance for sole traders is covered in our dedicated guide: Van Finance Claims
Frequently Asked Questions
I am a sole director of my own limited company. Can I claim for my company car?
It depends on who signed the finance agreement. If you personally signed the PCP or HP agreement in your own name (not the company’s name), you may be eligible. If the company is the named borrower on the credit agreement, you are outside the scheme. Check your original agreement or credit report to confirm.
My employer gave me a company car on a salary sacrifice scheme. Can I claim?
Salary sacrifice schemes are typically set up as employer agreements — the employer takes the finance agreement and you sacrifice salary. The individual employee is not the borrower. This means salary sacrifice cars are generally outside the FCA scheme scope.
I am a van driver (sole trader). Can I claim for my work van?
Yes — if you are a sole trader and you personally signed a HP or PCP agreement for a van under £25,000 between April 2007 and November 2024, your agreement is within scope. See our van finance claims guide for more detail.
My company car had very high interest rates. Can I pursue this outside the FCA scheme?
You can complain to the lender directly. Company finance agreements may not be covered by the Consumer Credit Act’s standard protections, but if the lender’s conduct was clearly unfair, a direct complaint or court claim may have merit. Take independent legal advice for your specific situation.
Related Guides
Self-Employed Car Finance Claims
Alphabet Car Finance Claims (Fleet Lender)
FCA Car Finance Redress Scheme Explained
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.
