Car Finance Claim If Your Lender Has Gone Bust or No Longer Exists
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.
Whether you can still claim depends entirely on what happened to your lender. If it was acquired or merged, you can almost certainly still claim. If it went into administration, you may still be able to claim but with a different process. If it was fully dissolved, the situation is more difficult — but options may still exist. This guide walks through every scenario.
Step 1: Check the FCA Register First
Before assuming your lender has gone bust, check the FCA Financial Services Register at register.fca.org.uk. Many lenders have changed names, merged or been absorbed by larger groups.
Common examples that catch people out:
- Vauxhall Finance is now Stellantis Financial Services — same lender, different name, same liability
- PSA Finance UK is also now Stellantis Financial Services
- Ford Credit and FCE Bank are the same entity
- Alphera Finance is part of BMW Financial Services
- Black Horse is the motor finance arm of Lloyds Banking Group
If you cannot find your lender on the FCA register, search Companies House at companieshouse.gov.uk for the company name and trading history.
Scenario 1: Lender Still Exists or Was Acquired
If your lender is still trading, has merged, or was acquired by a company that took on its liabilities, you make a normal claim through the FCA’s PS26/3 scheme. The successor entity is responsible for the original agreement’s liabilities.
Scenario 2: Lender Is in Administration
If your lender entered administration but has not been dissolved, you can submit a complaint to the administrator. Their contact details will be on the FCA register or the Companies House filing.
Under the FCA scheme rules, if another person acquired rights under the agreement (a debt purchaser), that person is responsible for the scheme obligations — not the original lender in administration.
If your complaint is upheld against an insolvent lender in administration, you become a creditor of the firm. You may receive full or partial payment depending on the administration outcome.
Scenario 3: Lender Has Been Fully Dissolved
If the company has been formally dissolved with no administrator, the situation is more difficult. Before accepting this, check:
- Was the debt sold to another company before dissolution? The buyer may have inherited the liability
- Was the lender a subsidiary of a larger group that still trades? The parent may have assumed liabilities
- Did the dealership arrange the finance and is it still trading? You may be able to pursue the broker in certain circumstances
Scenario 4: Confusing the Dealer With the Lender
Many people confuse the car dealership (the garage that sold the car) with the finance company (who provided the money). Your claim is always against the lender, not the dealer — even if the dealer arranged everything.
Ways to identify your lender:
- Check your credit report — the lender’s name will appear against the agreement
- Contact the original dealership — they will have records of which lender they used
- Use Claims Bible’s free agreement finder — we trace agreements using your personal details and vehicle registration
Frequently Asked Questions
My lender merged with another company years ago. Who do I complain to?
Complain to the successor that absorbed the original lender. The FCA register will show the current entity or any transfer of regulatory permissions.
Can I claim through the FSCS if my lender went bust?
The FSCS covers deposits, investments and some insurance — not typically car finance mis-selling. Check fscs.org.uk but do not rely on FSCS as the primary route for car finance claims.
My lender was a small dealer-owned finance company that has closed. What are my options?
Check Companies House first. If fully dissolved with no successor or debt purchaser, a direct claim may not be possible. Contact Claims Bible for a free assessment of your specific situation.
I had car finance with Wonga. Can I still claim?
Wonga went into administration in 2018 and primarily offered personal loans rather than car finance. If you had a personal loan from Wonga that was unaffordable, that is a separate type of unaffordable lending claim — not covered by PS26/3.
Related Guides
FCA Car Finance Redress Scheme Explained
Car Finance Claims Without Paperwork
Back to Car Finance Claims Hub
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.
