What If the Car Dealership Has Closed? Can You Still 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.
Hundreds of UK car dealerships have closed since 2020. If the dealer where you arranged your car finance no longer exists, you may be wondering whether this affects your ability to claim under the FCA confirmed motor finance redress scheme (PS26/3). The answer is no — and this page explains why.
Your Claim Is Against the Lender, Not the Dealer
This is the most important point on this page. Under PS26/3, your claim is against the lender — the finance company whose money you borrowed — not against the dealership that introduced you to them. The dealer arranged the finance, but the commission that PS26/3 addresses was paid by the lender to the dealer. The lender is the regulated entity responsible for redress.
Whether the dealership is still trading, has changed ownership, has merged with another group, or has gone into administration is entirely irrelevant to your PS26/3 claim. The lender continues to exist and remains responsible.
Common Dealer Groups That Have Closed
Several significant UK dealer groups have closed or been restructured since 2020, including Lookers (partial closures), Pendragon restructuring, and many independent dealers. In every case, the underlying finance agreements remain live obligations of the lender — not the dealer.
What If the Dealer Was Also the Lender?
In a small number of cases — typically smaller independent dealers — the dealer may have also been the credit provider under an in-house finance arrangement. If the dealer provided the credit directly rather than introducing you to a third-party lender, and that dealer has since closed, the position is more complex. Your claim would be against the dealer’s estate in insolvency. This situation is uncommon — most dealer finance was arranged through third-party FCA-regulated lenders.
If you are unsure whether your agreement was with a third-party lender or the dealer directly, check your original agreement. If it names a separate finance company, your claim is with that company. If it only names the dealer, seek advice.
How to Find Your Lender If the Dealer Has Closed
If you do not have your original paperwork and the dealer has closed, you can still identify your lender through:
- Your personal credit report — regulated consumer credit agreements appear on your credit file with the lender’s name. Use a free service such as Experian, Equifax or TransUnion.
- Your bank statements — direct debit payments to the finance company will show the lender name.
- The DVLA — the finance agreement may be registered as a financial interest on the vehicle through HPI or similar.
For more detail on finding your lender without paperwork, see: Claiming Without Paperwork.
Related Pages
Frequently Asked Questions
The franchise dealer I bought from has been taken over by a new group. Who do I complain to?
The lender — not the dealer or the new dealer group. The change of dealer ownership has no effect on your PS26/3 claim.
The dealer was an independent and has gone into administration. What do I do?
Check whether your finance was with a third-party lender or provided directly by the dealer. If a third-party lender is named on your agreement, your claim is with them and is unaffected. If the dealer was also the credit provider, your claim may be an unsecured creditor claim in the insolvency — seek advice.
I cannot find any record of the lender. The dealer has closed and I have no paperwork.
Check your credit report and bank statements. Both should show the lender name if the agreement was regulated consumer credit. See: Claiming Without Paperwork.
Does the dealer closing affect the amount of compensation I could receive?
No. Your compensation is calculated based on your agreement terms and the commission arrangement between the lender and dealer. The dealer’s subsequent closure has no effect on the calculation or payment.
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.
