Will a Car Finance Claim Affect My Credit Score?
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.
No — making a car finance complaint under the FCA’s PS26/3 scheme does not affect your credit score. The complaint process is entirely separate from credit reporting. In fact, for some claimants the PS26/3 scheme may actively improve their credit file by requiring lenders to remove adverse marks linked to mis-sold agreements.
Making a Complaint Does Not Affect Your Credit Score
Submitting a car finance complaint — directly to your lender or via the Financial Ombudsman Service — is not a credit application. It does not trigger a credit check, it does not appear on your credit file, and it does not itself affect your credit score. The three UK credit reference agencies — Experian, Equifax and TransUnion — do not record complaints or legal disputes against your name.
Continuing to Pay During a Complaint
If you are making a claim on an agreement that is still active, the complaint does not change your obligation to keep paying. You must continue making your regular payments while the complaint is being investigated. Stopping payments in the expectation of a complaint being resolved in your favour could result in a missed payment marker on your credit file.
How PS26/3 Can Actually Improve Your Credit File
For claimants who had payment difficulties linked to their mis-sold agreement, the PS26/3 scheme provides an active credit file improvement mechanism. Where the commission-inflated interest rate contributed to making the agreement unaffordable — leading to missed payments, defaults or county court judgments — the lender is required to correct those adverse entries as part of the redress.
This means making a car finance claim can actively improve your credit score by removing entries that should not have been there. See our dedicated guide: Car Finance Claim — Credit File Correction
What If I Have Bad Credit — Can I Still Claim?
Yes. Your current credit score has no bearing on your eligibility to make a car finance claim. The claim is about how a past agreement was sold — not your current creditworthiness. See: Car Finance Claim with Bad Credit
Lender Behaviour During the Complaint
- Lenders cannot legally penalise you for making a complaint — the FCA’s rules explicitly prevent this
- A complaint does not trigger a search on your credit file
- The FCA is actively monitoring lender behaviour during the PS26/3 process
- Your other accounts with the same lender group are not affected by a car finance complaint
Frequently Asked Questions
Will my mortgage lender see that I have made a car finance complaint?
No. Complaints are not recorded on credit files and are not visible to other lenders.
I am applying for a mortgage. Should I wait to make a car finance claim?
There is no credit-file reason to wait — the complaint does not appear on your credit file. If you are asked to declare pending legal claims on a mortgage application, seek advice from your mortgage broker on whether a PS26/3 complaint needs to be disclosed on that specific form. This is a mortgage application process question, not a credit score question.
The compensation I receive — will it affect my credit score?
No. Receiving a compensation payment is not a credit event. It does not appear on your credit file, does not generate a credit check, and does not affect your score.
Related Guides
Car Finance Claim — Credit File Correction
Car Finance Claim with Bad Credit
Car Finance Claim If You Are in an IVA or Bankrupt
Back to Car Finance Claims Hub
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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.
