Joint Car Finance Agreement — Can Both Parties 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.
If your PCP or HP car finance agreement was taken out jointly — with two named parties on the agreement — the PS26/3 redress scheme still applies. This page explains how joint agreements are treated, who receives the compensation, and what to do if the other party is no longer in contact.
What Is a Joint Car Finance Agreement?
A joint car finance agreement is one where two people are named as co-borrowers on the finance contract. Both parties are equally liable for the repayments and both are named on the credit agreement. This was common between partners, spouses, or parent and adult child where one party had insufficient credit history alone.
Is a Joint Agreement Covered by PS26/3?
Yes. Joint PCP and HP agreements arranged between 6 April 2007 and 1 November 2024 are fully within the scope of PS26/3, provided the lender was FCA-regulated. The commission arrangement that led to the redress scheme applied to the agreement itself, not to individual borrowers on it.
Who Receives the Compensation?
The compensation under PS26/3 is paid to the agreement — not to individual parties separately. In practice, lenders will typically pay to the primary account holder or to a jointly designated account. If the agreement has been settled, the lender will correspond with the first-named borrower.
If the joint parties are no longer together or are in dispute, this can create practical complications. The compensation belongs to both parties jointly and any disagreement about division is a private matter between them — the lender will not adjudicate.
If One Party Cannot Be Reached
If you and your co-borrower have separated and you cannot reach them, you can still submit the complaint — you do not need both parties to initiate. However, any compensation paid will typically be directed to the primary account holder. If you were the secondary borrower and have concerns about receiving your share, consider seeking legal advice before the compensation is paid.
Submitting a Joint Agreement Complaint
When submitting your complaint to the lender, include both names as they appeared on the original agreement. Reference PS26/3. The lender will correspond with the primary account holder in most cases. Include:
- Both full names as on the original agreement
- Date of birth of both parties if possible
- Address at time of agreement
- Vehicle make, model and registration if known
- Approximate agreement start date
Related Pages
Named Driver on Someone Else’s Agreement
Multiple Car Finance Agreements
Frequently Asked Questions
My ex-partner and I had a joint car finance agreement. We have separated. Can I claim alone?
You can submit the complaint alone referencing both names on the agreement. The compensation will typically be paid to the primary account holder. If there is a dispute about division of proceeds, that is a private civil matter between you and your ex-partner.
Does both parties on the agreement need to sign the complaint?
No. One party can submit the complaint. You should reference both names as they appear on the original agreement and note that it was a joint agreement.
We had a joint agreement and both took out separate agreements as well. Can we claim for all of them?
Yes. Each agreement is assessed and paid separately. See: Multiple Car Finance Agreements.
The other person on the joint agreement has died. What do I do?
You can still claim. Reference both names on the agreement and note that one party has deceased. For guidance on claims involving deceased parties more broadly, see: Car Finance Claim After Death.
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.
