Received a Letter About Your Car Finance? What It Means and What to Do
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.
From late 2026, millions of UK drivers will receive letters, emails and texts from their lenders about the FCA motor finance redress scheme (PS26/3). This guide explains what these communications mean, how to verify they are genuine, what each major lender letter looks like, and exactly what to do next. This page is about letters from your lender — for letters from claims companies or law firms, see the links at the bottom.
Why Are Lenders Sending These Letters?
Under PS26/3 lenders must contact customers with potentially eligible agreements who have not yet complained. The FCA deadlines are:
Post-April 2014 agreements: Lenders must contact eligible non-complainants by 30 December 2026
Pre-April 2014 agreements: Lenders must contact eligible non-complainants by 28 February 2027
Receiving a letter before these dates usually means you have already complained, or your lender is acting proactively. A letter from your lender is a positive sign — it means they have identified your agreement as potentially eligible.
Is My Letter Genuine? How to CheckCheck the sender: Genuine letters come directly from the lender — Black Horse, Santander, Barclays — not from unknown third parties.
Verify the lender independently: Look up the lender on the FCA register at register.fca.org.uk. Do not call numbers printed in the letter — find the number independently.
No upfront fee: The FCA scheme is free. Any letter asking for payment is fraudulent.
No banking details: Lenders will never ask for your PIN, online banking password or full card number.
What Each Major Lender Letter Looks Like
Black Horse (Lloyds Banking Group)
Black Horse letters come from Black Horse Ltd or Lloyds Banking Group and reference PS26/3. Black Horse has the largest provision at £2 billion. If you receive a genuine Black Horse letter, your agreement is almost certainly within scope.
Black Horse Car Finance Claims — Full Guide
Santander Consumer Finance
Santander letters reference Santander Consumer Finance UK Ltd. Santander has set aside £461 million. Their letters explain the scheme timetable and invite you to confirm details.
Santander Car Finance Claims — Full Guide
Close Brothers Motor Finance
Close Brothers letters come from Close Brothers Motor Finance Ltd. Close Brothers is named in the Supreme Court Johnson case and has significant exposure. Their communications reference PS26/3 and explain the assessment process.
Close Brothers Car Finance Claims — Full Guide
Barclays Partner Finance
Barclays letters come from Barclays Partner Finance or Clydesdale Financial Services Ltd. Barclays has set aside £325 million. Their complaint email is bpfmotorcommissioncomplaints@barclays.com.
Barclays Car Finance Claims — Full Guide
BMW, MINI and Alphera
BMW Group letters come from BMW Financial Services (GB) Ltd and may reference BMW, MINI or Alphera agreements. BMW Group has set aside £277 million.
BMW Car Finance Claims — Full Guide
Ford Credit / FCE Bank
Ford letters come from FCE Bank plc or Ford Credit. Ford has set aside £155 million.
Ford Car Finance Claims — Full Guide
What to Do When You Receive a Genuine Letter
Step 1 — Read carefully. The letter will either confirm a compensation amount or invite you to confirm details for assessment.
Step 2 — Respond promptly. If invited to confirm details, do so within the timeframe stated. Delays push you into a later payment cohort.
Step 3 — Review any compensation offer carefully. You typically have 6 months to accept or refer to the Financial Ombudsman.
Step 4 — If you have already signed up with Claims Bible or another CMC, forward the letter to them immediately. Do not respond to the lender directly as your CMC holds authority to respond on your behalf.
Have Not Received a Letter Yet?
You do not need to wait. You can complain to your lender directly until 31 August 2027. Proactive complainants are paid significantly earlier than those who wait for lender contact.
Letters From Claims Companies and Law Firms
Locksley Law Letter — Is It Genuine?
Check Finance Letter — What It Means
JustEra Letter — What It Means
Frequently Asked Questions
I do not recognise the lender name on the letter. What should I do?
Many lender names have changed. Clydesdale Financial Services is Barclays. Moneyway is Secure Trust Bank. PSA Financial Services is now Stellantis Financial Services. Check the relevant lender guide on Claims Bible using the brand name of your car.
The letter says I am not owed anything. Can I challenge it?
Yes. Refer to the Financial Ombudsman Service within 6 months of the final response date if you believe the lender has not correctly applied the scheme rules.
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.
