First Response 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 First Response 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). First Response Finance is a specialist non-prime lender focused on used car finance through independent and franchised dealers. Average payout: £829.
Who Is First Response Finance?
First Response Finance Ltd is a Nottingham-based specialist motor finance lender that focuses on the non-prime and sub-prime market. It provides HP and PCP agreements for used vehicles through a broad panel of independent dealers across the UK. As a specialist non-prime lender, First Response Finance customers typically had limited access to mainstream finance, meaning dealers had significant leverage to set rates at the higher end of any DCA range without customers shopping around.
Is First Response Finance Covered by PS26/3?
Yes. First Response Finance Ltd 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.
Three Grounds for a First Response Finance Claim
1. Discretionary Commission Arrangements (DCAs)
As a non-prime lender operating through independent dealers, First Response Finance is one of the lenders where DCA rate-setting was most likely to have been at the maximum end of the permitted range. Customers with impaired credit had the fewest alternatives and were least likely to challenge higher rates.
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 First Response Finance had preferential arrangements with specific dealer networks that were not disclosed, the contractual tie ground may apply.
How Much Could You Receive?
The FCA confirmed average payout is £829. Non-prime agreements through First Response Finance often involved higher APRs than mainstream lenders, which can produce above-average payouts under the hybrid remedy. Use our car finance claims calculator to estimate your 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 First Response Finance Ltd 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 poor credit and was directed to First Response Finance. Can I still claim?
Yes. Being directed to a specialist lender does not affect eligibility. See: Bad Credit Car Finance Claim
First Response Finance specialises in used cars. Are used car agreements covered?
Yes. PS26/3 covers both new and used vehicle agreements. See: Used Car Finance Claim
The dealer I used has since closed. Can I still claim against First Response Finance?
Yes. Your claim is against the lender, not the dealer. See: What If the Dealership Has Closed?
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.
