Kia 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 Kia vehicle 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). Kia Finance, provided through Hyundai Capital UK, is the captive finance arm for Kia in the UK. Kia has grown significantly in the UK market and its finance agreements are a meaningful focus area under the scheme.
Who Provides Kia Car Finance?
Kia Finance is a trading name of Hyundai Capital UK Ltd, the same entity that provides Hyundai Finance. Both Kia and Hyundai are part of the Hyundai Motor Group, sharing their finance infrastructure in the UK. Hyundai Capital UK is FCA-authorised and its Kia-branded agreements in the eligible period fall within PS26/3.
Kia’s rapid growth in the UK from around 2010 onwards — driven by the introduction of the 7-year warranty and competitive pricing — meant its dealer network was expanding aggressively during a period when commission arrangements in motor finance were at their height. This growth context makes Kia agreements particularly worth assessing.
Is Kia Finance Covered by the FCA Scheme?
Yes. All FCA-regulated PCP and HP agreements arranged through Kia Finance / Hyundai Capital UK between 6 April 2007 and 1 November 2024 are within PS26/3. The complaint deadline is 31 August 2027.
Three Grounds for a Kia Car Finance Claim
1. Discretionary Commission Arrangements
Kia dealers arranging finance through Hyundai Capital UK prior to 28 January 2021 could set your interest rate within a lender-defined range, earning higher commission the higher the rate. Where this was not disclosed to you at point of sale, you are eligible for compensation.
2. Unfairly High Fixed Commission
Post-January 2021 Kia Finance agreements may still qualify if the fixed commission paid to the dealer reached the FCA threshold of 39% of total cost of credit and 10% of the loan amount.
3. Rapid Network Expansion Commission Pressures
During the period of Kia dealership expansion, new franchise agreements incentivised finance uptake heavily. Where dealers were pushed to maximise finance penetration and commission structures were not disclosed to customers, this directly supports a complaint under the scheme.
Kia EV and Hybrid Agreements
Kia has been a leading EV brand in the UK, with the EV6 and Niro EV among the most popular electric vehicles financed in recent years. PCP and HP agreements for Kia EVs and hybrids are within the scheme in the same way as petrol and diesel agreements, provided they fall within the April 2007 to November 2024 window.
How Much Could You Receive?
The FCA confirmed average payout is £829 per eligible agreement. Your amount is calculated using the hybrid remedy — averaging your estimated interest overpayment (17% APR reduction for post-April 2014 agreements, 21% for pre-April 2014) and the commission paid, plus compensatory interest at Bank of England base rate plus 1% per year.
Scheme Timetable
Post-April 2014 agreements: Complain before 30 June 2026 → response 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 Kia Finance
Submit your complaint to Hyundai Capital UK Ltd (trading as Kia Finance) using the contact details on your original agreement or via the Kia Finance website. Reference PS26/3. Include your full name, date of birth, address at time of agreement, vehicle registration and a statement about undisclosed commission arrangements.
Related Lender Pages
Frequently Asked Questions
My paperwork says Hyundai Capital, not Kia Finance. Is it the same?
Yes. Kia Finance is a trading name of Hyundai Capital UK Ltd. Both names refer to the same legal entity. Your agreement is within the scheme regardless of which name appears.
I financed a used Kia through a non-Kia dealer. Am I still eligible?
Eligibility depends on whether the finance was arranged as a regulated agreement through Hyundai Capital UK. If the paperwork names Kia Finance or Hyundai Capital as the lender, the arrangement qualifies regardless of the selling dealer.
I had multiple Kia agreements — a Sportage and then a Sorento. Can I claim for both?
Yes. Each eligible agreement is assessed independently. If both involved undisclosed commission arrangements in the eligible period, 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.
