Honda 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 Honda vehicle through Honda Finance Europe between April 2007 and November 2024, you may be entitled to compensation under the FCA confirmed motor finance redress scheme (PS26/3, 30 March 2026). Honda Finance Europe is the captive finance arm serving Honda UK customers, and its agreements in the eligible period are fully within the scope of the scheme. This guide explains eligibility, how the FCA hybrid remedy applies to Honda agreements, and how to submit your complaint.
Who Is Honda Finance Europe?
Honda Finance Europe Plc is the UK captive finance provider for Honda Motor Co Ltd, offering PCP and HP agreements to customers purchasing Honda cars, motorcycles and other vehicles through the franchised Honda dealer network. The company is FCA-authorised and headquartered in Bracknell, Berkshire. Honda Finance Europe is a standalone entity separate from Honda Motor Co itself, operating exclusively to finance Honda product purchases through dealerships.
Unlike some manufacturer finance arms, Honda Finance Europe has not publicly disclosed a specific provision for motor finance redress. However, as an FCA-regulated lender with agreements in the eligible period, it is within the confirmed scheme and must comply with PS26/3.
Is Honda Finance Europe Covered by the FCA Scheme?
Yes. All FCA-regulated PCP and HP agreements arranged through Honda Finance Europe between 6 April 2007 and 1 November 2024 fall within PS26/3. The complaint deadline is 31 August 2027.
Three Grounds for a Honda Car Finance Claim
1. Discretionary Commission Arrangements (DCAs)
Honda Finance Europe agreements arranged through dealerships prior to 28 January 2021 may have included DCAs — where the Honda dealer could set your interest rate within a range and earn more commission the higher they set it. If this was not disclosed to you at the point of sale, you are eligible for compensation.
2. Unfairly High Fixed Commission
Post-January 2021 Honda agreements may still qualify if the fixed commission paid to the dealer met the FCA threshold — at least 39% of the total cost of credit and 10% of the loan amount. Honda Finance Europe sold agreements through a franchised network where commission payments were standard, making this ground applicable across a broad range of agreements.
3. Captive Lender Presentation
Honda dealerships typically presented Honda Finance Europe as the primary or preferred finance option. Where customers were not offered alternative finance comparisons and the commission structure was not disclosed, this supports a complaint under FCA conduct requirements regardless of whether a DCA was technically in place.
Honda Model Coverage
All Honda passenger cars financed through Honda Finance Europe in the eligible period are covered, including the Civic, Jazz, CR-V, HR-V, Accord, Legend, NSX, e (electric), and Type R performance variants. Honda motorcycle finance agreements may also be within scope depending on whether they were arranged as consumer credit agreements under FCA regulation.
How Much Could You Receive?
The FCA confirmed average payout is £829 per eligible agreement. Your amount depends on your loan size, interest rate and agreement date. The hybrid remedy averages your estimated interest overpayment (17% APR reduction for post-April 2014 agreements, 21% for pre-April 2014) and the dealer commission paid by Honda Finance Europe, plus compensatory interest at Bank of England base rate plus 1% per year.
Scheme Timetable
Post-April 2014 agreements: Complain before 30 June 2026 → Honda Finance must respond by 30 September 2026 → Payment by November 2026
Pre-April 2014 agreements: Complain before 31 August 2026 → Decision by 30 November 2026 → Payment by January 2027
Final complaint deadline: 31 August 2027
How to Complain to Honda Finance Europe
Submit your complaint in writing to Honda Finance Europe Plc, Cain Road, Bracknell, RG12 1HL, or via the Honda Financial Services portal at www.hondafinancialservices.co.uk. Reference the FCA motor finance redress scheme (PS26/3). Include your full name, date of birth, address at the time of the agreement, vehicle registration and agreement number if available, and a statement that you are complaining about undisclosed commission arrangements.
Related Lender Pages
Frequently Asked Questions
I financed a Honda motorcycle, not a car. Am I eligible?
Honda Finance Europe also provides finance for motorcycles. If your motorcycle finance agreement was arranged as a regulated consumer credit agreement through a Honda dealer or finance broker between April 2007 and November 2024, it should be assessed under the same scheme criteria.
My Honda agreement was a personal contract hire, not PCP or HP. Is it covered?
The FCA scheme specifically covers PCP and HP agreements. Personal contract hire (PCH) and leasing arrangements are not within scope as they are structured differently and do not involve the same commission arrangements.
I traded in my Honda and started a new agreement. Do both agreements qualify?
Each agreement is assessed independently. If both your original and replacement Honda agreements fall within the April 2007 to November 2024 window and involved undisclosed commission, you can claim for each separately.
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.
