Lombard Car Finance Claim — Could You Be Owed Compensation?

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 Lombard between April 2007 and November 2024, your agreement may have included undisclosed commission arrangements covered by the FCA motor finance redress scheme. Lombard has been publicly tracking the FCA review since January 2024 and is subject to the same scheme obligations as all other regulated motor finance lenders. This guide explains eligibility, compensation, and how to claim.

In this guide

• Who Is Lombard?
• Which Lombard Agreements Are Within the FCA Scheme?
• The Three Grounds for a Lombard Claim
• Scheme Timetable — When Will You Be Paid?
• How Much Could You Receive?
• How to Submit a Lombard Finance Complaint
• Frequently Asked Questions
• Our Partner's Fees Explained
• Think You May Have a Motor Finance Claim?

Who Is Lombard?

Lombard is a trading name of Lombard North Central PLC, a subsidiary of NatWest Group PLC — one of the UK’s largest banking groups. Lombard is one of the UK’s largest asset finance providers, arranging vehicle finance, equipment finance and leasing for both personal and business customers. If your finance paperwork shows Lombard, Lombard North Central, or Lombard Vehicle Solutions, you are dealing with the same NatWest Group entity.

Lombard has been actively handling motor finance commission complaints since January 2024, providing regular updates on its website as the FCA review has progressed. NatWest Group has made provisions for motor finance redress across its businesses, reflecting the scale of potential exposure. Lombard is subject to the same FCA scheme rules and implementation deadlines as all regulated motor finance lenders.

Which Lombard Agreements Are Within the FCA Scheme?

The FCA scheme (PS26/3) covers regulated personal PCP and HP finance agreements taken out between 6 April 2007 and 1 November 2024. Lombard agreements that fall outside the scheme include personal contract hire (leasing) agreements, finance taken out by limited companies, zero-APR agreements, and high-value loans above the 99.5th percentile for their year.

If you are unsure whether your Lombard agreement was regulated personal finance or a business arrangement, check your original paperwork — the agreement type and borrower name will be clearly stated. See: FCA Redress Scheme Explained

The Three Grounds for a Lombard Claim

1. Discretionary Commission Arrangements (DCAs)

A DCA allowed the dealer to adjust your Lombard interest rate within a range to earn more commission — without telling you. The higher the rate was set, the more the dealer earned. This practice was banned on 28 January 2021. If your Lombard agreement included a DCA that was not clearly disclosed, you are eligible for compensation. See: What Is a DCA?

2. Unfairly High Commission

Even without a DCA, if the fixed commission paid by Lombard to the dealer was at least 39% of the total cost of credit and 10% of the loan amount, it is considered unfairly high under the FCA scheme. This ground applies across all eligible Lombard agreements regardless of whether a DCA was in place.

3. Contractual Ties

Where Lombard had exclusivity or right-of-first-refusal arrangements with certain dealers that were not clearly disclosed to customers, this may trigger compensation. Lombard’s broad range of dealer and intermediary relationships across asset finance means contractual tie arrangements may be relevant in more cases than with manufacturer-linked captive lenders.

Scheme Timetable — When Will You Be Paid?

• Post-April 2014 agreements: Complain before 30 June 2026 → Lombard must respond by 30 September 2026 → Payment by November 2026
• Pre-April 2014 agreements: Complain before 31 August 2026 → Lombard must respond by 30 November 2026 → Payment by January 2027
• If you do not complain: Lombard must contact you within six months of the relevant implementation deadline if you are likely owed money
• Final complaint deadline for all agreements: 31 August 2027

Lombard has confirmed that motor finance commission complaints remain paused until 31 May 2026. Submitting your complaint now places you in the queue — customers who have already complained will receive decisions and payments significantly earlier than those who wait to be contacted.

How Much Could You Receive?

The FCA’s confirmed national average payout is £829 per eligible agreement. Your specific amount depends on your loan size, the commission structure on your agreement, and when it started. Compensation uses the hybrid remedy — the average of your estimated interest overpayment (APR adjustment of 17% for post-2014 agreements, 21% for pre-2014 agreements) and the commission paid to your dealer, plus compensatory interest at Bank of England base rate plus 1% per year (minimum 3%) from the date of each overpayment.

Use our car finance claims calculator for an estimate. For older agreements: How Far Back Can You Claim?

How to Submit a Lombard Finance Complaint

Your complaint goes to Lombard North Central PLC — not the dealership. Write to Lombard’s complaints team clearly stating you are complaining about undisclosed motor finance commission arrangements under the FCA redress scheme (PS26/3, confirmed 30 March 2026). Include your full name, date of birth, address at the time of the agreement, vehicle registration if known, and the approximate date and type of your agreement.

You do not need your original paperwork to complain — Lombard holds its own records. If you are unsure of your agreement details: Claiming Without Paperwork. For contact details across all lenders: Car Finance Lender Contact Details

Claims Bible’s legal partners can submit your complaint on your behalf, assess all three grounds, and manage the process through to payment on a no win, no fee basis.

Frequently Asked Questions

I had a Lombard business finance agreement for a company vehicle. Is it covered?

Only if the finance was in your personal name and used primarily for personal purposes. Business finance taken out by limited companies is outside the FCA scheme. If you are a sole trader with a personal loan under £25,000 used primarily for personal purposes, your agreement may be eligible. Claims Bible’s legal partners can confirm.

My Lombard agreement was from 2008. Is it too old to claim?

No. The scheme covers agreements back to 6 April 2007. Pre-2014 agreements attract a higher APR adjustment (21% rather than 17%) and accumulate more compensatory interest, meaning older agreements can result in larger payouts than more recent ones. See: How Far Back Can You Claim?

I do not have my Lombard paperwork. Can I still claim?

Yes. Lombard holds its own records and is required to check them under the scheme. Claims Bible’s legal partners can also trace your agreement using a soft credit check. See: Claiming Without Paperwork

Lombard rejected my previous commission complaint. Can I resubmit?

Yes. Early rejections were typically assessed only on DCA grounds before the scheme expanded to cover high commission and contractual tie grounds. Resubmitting under all three grounds is valid. See: Car Finance Claim Rejected — What to Do Next

I had multiple vehicle finance agreements with Lombard over the years. Can I claim for all of them?

Yes. Each eligible agreement is assessed and compensated separately under the scheme.

Does complaining to Lombard affect my NatWest banking relationship?

No. The FCA has confirmed that making a motor finance complaint cannot be used against you by any lender and does not affect your credit score or any banking products you hold with NatWest Group.

What if Lombard has exited or reduced its motor finance operations?

Your right to claim under the FCA scheme is preserved regardless. The scheme obligations apply to the entity that arranged your original agreement. See: Claiming When Your Lender Has Gone Bust or Exited the Market

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.