Mercedes Car Finance Claim – Check If You’re 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.

Mercedes-Benz Financial Services UK has set aside £424 million for motor finance redress — the largest provision of any vehicle manufacturer’s finance arm in the UK scandal. The provision was so large it pushed the company to a £365 million annual loss. If you financed a Mercedes car, van or Smart vehicle on PCP or Hire Purchase before November 2024, you may be owed compensation averaging £829.

In this guide

• Who Is Mercedes-Benz Financial Services — And What Makes This Different?
• The £424 Million Provision — And the £365 Million Loss It Caused
• Why Premium Car Finance Means Higher-Than-Average Payouts
• What Is a Mercedes Car Finance Claim?
• Three Types of Commission That May Have Affected Your Mercedes Agreement
• Are You Eligible to Make a Mercedes Car Finance Claim?
• How Much Could a Mercedes Car Finance Claim Be Worth?
• Mercedes Agility Finance — What Is It and Is It Covered?
• Mercedes Vans and Smart Cars — Are They Covered?
• Key Dates for Mercedes-Benz Financial Services CustomersApril 2007 — Eligible agreements begin
• Why You Should Complain to Mercedes-Benz Financial Services Now
• How Claims Bible Helps With Mercedes ClaimsStep 1 — Trace your MBFS agreements
• Frequently Asked Questions
• Our Partner's Fees Explained
• Think You May Have a Motor Finance Claim?

Who Is Mercedes-Benz Financial Services — And What Makes This Different?

Mercedes-Benz Financial Services UK Ltd (MBFS) is the dedicated finance arm of Mercedes-Benz, providing PCP and Hire Purchase agreements to UK customers through authorised Mercedes-Benz dealerships. It is not a bank or independent finance company — it exists specifically to finance Mercedes vehicles, which creates a particular dynamic in how commission arrangements worked.

The company also provides finance for Smart cars and Mercedes-Benz vans, meaning the scope of eligible agreements extends beyond passenger cars to commercial and city vehicles.

Mercedes markets its PCP product under the name ‘Agility Finance’. If your finance agreement referenced Agility, this is a Mercedes-Benz Financial Services product and is covered by the FCA redress scheme.

While Mercedes-Benz Financial Services has set aside a significant £424 million—the largest provision of any manufacturer-linked lender—it is just one part of the broader motor finance scandal. You can benchmark the MBFS provision against other major lenders like Black Horse, Santander Consumer Finance, and Northridge Finance.

For a comparison with a rival, premium manufacturer lender, see our guide on BMW Financial Services.

To get a complete understanding of the redress process, from eligibility to potential compensation amounts, we recommend consulting our Ultimate Guide to Car Finance Claims and the general resource on Car Finance Claims. If you lack the original documents, our guide explains how to make a Car Finance Claim Without Paperwork, and you can use our Car Finance Claims Calculator to estimate your potential payout.

The £424 Million Provision — And the £365 Million Loss It Caused

Mercedes-Benz Financial Services UK has set aside £424 million for motor finance redress — the largest provision of any manufacturer-linked finance arm in the entire scandal. To put that in context:

• The provision was larger than Northridge (£350 million), Barclays (£325 million) and Close Brothers (£300 million)
• The charge was so significant that Mercedes-Benz Financial Services UK posted a £365 million annual loss — a company that would otherwise have been profitable
• Mercedes-Benz took a £395 million charge in its 2024 accounts, on top of a £28.8 million provision already set aside
• At group level, Mercedes-Benz had previously disclosed a £368 million provision — but the UK-specific accounts revealed the true scale was higher

This is not a situation where a lender has set aside a cautious buffer. A provision that triggers a £365 million annual loss represents a company that has assessed its exposure carefully and concluded the risk is real and substantial.

£424m set aside by Mercedes-Benz Financial Services UK for motor finance redress

£365m annual loss posted by MBFS UK — directly caused by the provision

£829 FCA estimated average payout per eligible agreement

Largest manufacturer-linked finance arm provision in the UK scandal

Why Premium Car Finance Means Higher-Than-Average Payouts

Most analysis of the car finance scandal focuses on average payouts across all lenders. For Mercedes customers, the picture is potentially more favourable — for a specific reason.

The FCA’s redress methodology calculates compensation based on the overpaid interest caused by hidden commission. Because Mercedes vehicles are premium-priced, the underlying loan amounts are typically higher than the industry average. A larger loan with an inflated interest rate means a proportionally larger overcharge — and a larger compensation payment.

On a standard £10,000 finance agreement, customers may have overpaid approximately £1,100 in interest. On a £30,000 Mercedes C-Class or E-Class agreement, the same commission structure could represent significantly more. If you financed a high-value Mercedes model, your potential claim may be well above the £829 average.

LawPlus Solicitors have cited potential compensation of over £7,300 for customers with multiple or high-value Mercedes agreements. Your individual amount depends on loan size, interest rate, commission paid and agreement length — but premium vehicle values work in your favour.

What Is a Mercedes Car Finance Claim?

A Mercedes car finance claim is a compensation claim for being mis-sold a finance agreement arranged through Mercedes-Benz Financial Services. This applies where:

• The dealer received a commission from MBFS that was not properly disclosed to you
• Your Agility Finance or HP interest rate was set higher than it needed to be in order to increase the dealer’s commission
• The total cost of your finance agreement was not clearly explained
• You were not told about the commercial relationship between Mercedes-Benz Financial Services and the dealership

Unlike independent lenders, Mercedes-Benz Financial Services operates through a network of authorised dealers who are tied to the Mercedes brand. This creates a specific type of commercial relationship that the FCA has examined carefully under the ‘contractual ties’ criteria — though note that where the manufacturer-dealer-lender link is visible, this particular ground may be limited (see the eligibility table below and FAQ).

Three Types of Commission That May Have Affected Your Mercedes Agreement

1. Discretionary Commission Arrangements (DCAs)

Before January 2021, Mercedes dealerships could set or adjust the interest rate on your Agility Finance or HP agreement. A higher rate earned the dealer more commission. Many Mercedes customers were never told this was happening.

2. Unfairly High Commission

Even where a fixed commission was used, if it amounted to at least 39% of the total cost of credit and 10% of the loan amount, it may have been unfairly high. On a premium vehicle finance agreement, fixed commissions of this scale are more likely to represent a material overcharge.

3. Contractual Ties

MBFS has an exclusive arrangement with the Mercedes-Benz dealer network. However, the FCA scheme has a specific provision here: where the lender can prove there were visible links between the manufacturer, dealer and lender, a contractual tie alone will not trigger compensation. For Mercedes, this exemption may apply given the obvious manufacturer-dealer-finance arm connection. DCA and high commission claims remain fully valid regardless of this.

Are You Eligible to Make a Mercedes Car Finance Claim?

On contractual ties: Mercedes-Benz Financial Services may argue the manufacturer-dealer-lender link was visible, which limits contractual tie claims. However, DCA and unfairly high commission claims are not affected by this and remain fully valid. If MBFS previously rejected your complaint citing this exclusion, it is worth re-submitting on DCA or high commission grounds.

How Much Could a Mercedes Car Finance Claim Be Worth?

The FCA estimates the average payout across the scheme is £829 per agreement. For Mercedes customers, the premium nature of the vehicles means higher-than-average loan amounts — and therefore potentially higher-than-average compensation. Here is how MBFS’s provision compares to other lenders:

Mercedes-Benz Financial Services UK’s provision is the largest of any manufacturer’s captive finance arm. The fact that it pushed the company to a £365 million annual loss is a clear signal that management assessed the exposure as significant, not marginal.

Your individual payout depends on: the loan amount; the interest rate you paid; the size of the undisclosed commission; the length of your agreement; and whether it falls in the 2007–2014 tranche (21% loss rate) or the 2014–2024 tranche (17% loss rate). Interest is added at Bank of England base rate plus 1%, minimum 3% per year. Each eligible Mercedes agreement is a separate claim.

Mercedes Agility Finance — What Is It and Is It Covered?

Mercedes-Benz markets its PCP product under the name ‘Mercedes-Benz Agility Finance’. If your agreement referenced Agility, you had a PCP product through Mercedes-Benz Financial Services — and it is covered by the FCA redress scheme, provided it meets the standard eligibility criteria.

Key Agility Finance facts for claimants:

• Agility Finance is a PCP product — you made monthly payments and had the option of a balloon payment at the end to own the car
• The interest rate on your Agility agreement was set at the point of sale by the Mercedes dealership
• Before January 2021, the dealership had discretion to adjust that rate — and their commission increased with it
• If you were not told clearly how the interest rate was set or that the dealer would earn more if they set it higher, you may have a valid claim

Mercedes Vans and Smart Cars — Are They Covered?

Yes — and this is worth knowing if you financed a Mercedes-Benz Sprinter, Vito, V-Class, or Smart car through MBFS.

Mercedes-Benz Financial Services finances both passenger cars and commercial vans under the same financing structure. The FCA redress scheme covers cars, vans, motorbikes and campervans financed on PCP or HP — provided it was for personal use or by a sole trader (loan under £25,000). A Mercedes Sprinter financed for personal use or as a sole trader van falls within scope.

Smart cars (Smart ForTwo, Smart ForFour) were also financed through Mercedes-Benz Financial Services during the eligible period. If you financed a Smart vehicle through MBFS before November 2024, your agreement is within scope.

Key Dates for Mercedes-Benz Financial Services CustomersApril 2007 — Eligible agreements begin

PCP and HP agreements taken out from 6 April 2007 fall within the FCA redress scheme.

January 2021 — DCAs banned

The FCA banned discretionary commission arrangements. Mercedes Agility Finance agreements from before this date are eligible on DCA grounds.

January 2024 — FCA investigation launched

The FCA announces a formal investigation into historic motor finance commission practices. MBFS is within scope.

October 2025 — MBFS discloses £368 million group-level provision

Mercedes-Benz Group announces a significant provision for UK motor finance redress.

December 2025 / January 2026 — UK accounts reveal £424 million provision — company posts £365 million loss

The UK-specific accounts show MBFS UK took a £395 million charge in 2024 on top of the earlier £28.8 million provision. The total £424 million pushed the company to a £365 million annual loss — the largest manufacturer-linked finance provision in the UK scandal.

Why You Should Complain to Mercedes-Benz Financial Services Now

A company that sets aside £424 million and posts a £365 million loss as a result is not underestimating its exposure. Under the original timetable, complaining before 30 June 2026 placed you in the priority group with a decision due by September 2026; those dates are suspended while the legal challenges run.

Complaining now also means:

• You are in the faster compensation track ahead of customers who wait
• Your current contact details are confirmed with MBFS
• You capture higher-value Agility Finance agreements where premium loan amounts mean larger potential payouts
• You avoid the 31 August 2027 final deadline risk

How Claims Bible Helps With Mercedes ClaimsStep 1 — Trace your MBFS agreements

We locate all historic Mercedes-Benz Financial Services PCP and HP agreements in your name — going back to 2007 — in under two minutes. Works for cars, vans and Smart vehicles. No paperwork needed.

Frequently Asked Questions

What is Mercedes Agility Finance and is it covered?

Mercedes Agility Finance is Mercedes-Benz Financial Services’ PCP product. If your agreement was described as Agility Finance, it was a PCP agreement through MBFS — and it is covered by the FCA redress scheme, provided it meets the standard eligibility criteria (PCP or HP, April 2007 to November 2024, personal use).

Why did Mercedes-Benz Financial Services post a £365 million loss?

Mercedes-Benz Financial Services UK took a £395 million charge in its 2024 accounts to cover potential motor finance redress costs — on top of £28.8 million already provisioned. The combined £424 million provision was larger than the company’s profits, resulting in a £365 million annual loss. This is a direct consequence of the FCA motor finance mis-selling scandal.

Does the contractual ties exclusion affect my Mercedes claim?

It may affect the contractual ties ground specifically, because the FCA scheme excludes contractual tie claims where there are visible links between the lender, manufacturer and franchised dealer — which clearly applies to Mercedes. However, DCA and unfairly high commission claims are not affected by this exclusion and remain fully valid. These are the stronger grounds for most Mercedes customers.

Can I claim for a Mercedes van financed through MBFS

Yes. The FCA scheme covers vans as well as cars, provided the finance was PCP or HP for personal use (or as a sole trader with a loan under £25,000). If you financed a Mercedes Sprinter, Vito or other van through MBFS between April 2007 and November 2024, your agreement is within scope.

Can I claim for a Smart car financed through Mercedes-Benz Financial Services?

Yes. Smart cars were financed through Mercedes-Benz Financial Services during the eligible period. If you financed a Smart ForTwo or ForFour through MBFS between April 2007 and November 2024, your agreement falls within the FCA scheme scope.

How much could I receive from a Mercedes car finance claim?

The FCA estimates the average payout is £829 per agreement. For Mercedes customers, premium vehicle loan amounts typically exceed the industry average — meaning potential compensation may be above average. On a £30,000+ Mercedes agreement with an inflated interest rate, compensation could be significantly higher than the industry average.

I don’t have my Mercedes Agility Finance paperwork. Can I still claim?

Yes. Claims Bible can trace your MBFS agreements using a credit reference check, going back as far as 2007. No original paperwork is needed.

What is the deadline to make a Mercedes claim?

31 August 2027 is the final deadline. Complaining before 30 June 2026 (post-2014 agreements) or 31 August 2026 (pre-2014 agreements) placed you in the priority group under the original timetable. Those dates are suspended, but a complaint made now is still logged and queued if the scheme resumes.

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.