Car Finance Claim — Named Driver on Someone Else’s Agreement
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 were the main driver of a vehicle but the finance agreement was in someone else’s name, you may still have rights under the FCA confirmed motor finance redress scheme (PS26/3, 30 March 2026). This page explains how named driver situations are treated, who can make a claim, and what to do if the finance holder is no longer in contact.
What Is a Named Driver Situation?
A named driver situation arises when one person takes out the finance agreement — the finance holder — but another person is the main user of the vehicle. This was common in several scenarios: parents financing a vehicle primarily driven by an adult child; partners where one had better credit; employers financing vehicles primarily driven by employees; or cases where a dealer suggested one person apply because they were more likely to be approved.
Who Can Claim Under PS26/3?
The legal claim under PS26/3 belongs to the finance holder — the person named on the agreement. The FCA redress scheme is based on the commission arrangement between the lender and the dealer, which only affected the finance holder’s agreement. The named driver does not have a direct claim against the lender.
However, the finance holder can make the claim regardless of who drove the vehicle. The scheme does not require the finance holder to have been the main driver. If you were the finance holder, you can claim even if someone else drove the car.
If You Were the Named Driver, Not the Finance Holder
If the finance agreement was in someone else’s name and you were the driver, you cannot make the PS26/3 claim directly. However:
- The finance holder can make the claim and may share the proceeds with you — this is a private arrangement between you.
- If the finance holder has died, the right to claim passes to the estate. See: Car Finance Claim After Death →
- If the finance holder cannot be located or is unwilling to claim, the compensation is likely to be lost unless contact can be re-established.
- If you believe you were deliberately put on the agreement as a named driver rather than the finance holder to inflate the commission or manipulate credit scoring, this may be a separate mis-selling ground worth discussing with a solicitor.
If You Are the Finance Holder and Someone Else Drove the Car
You can claim in full. The scheme does not require you to have been the driver. You need:
- The agreement reference number or approximate start date
- The lender name
- The vehicle registration if known
If you no longer have your paperwork, see: Claiming Without Paperwork.
Related Pages
Joint Car Finance Agreement Claims
Frequently Asked Questions
I drove the car but my partner took out the finance. Can I claim?
The claim belongs to your partner as the finance holder. They can make the claim and the proceeds are theirs. If you are making the claim together, your partner should be the named claimant.
My parents financed a car that I drove. They have passed away. Can I still claim?
Yes. The right to claim passes to the estate. See: Car Finance Claim After Death for the full process.
The finance was in my ex-partner’s name. They are not cooperating. What can I do?
The claim legally belongs to the finance holder. If they are unwilling to claim, there is no mechanism to force them to do so. If you funded the repayments yourself, you may have grounds to pursue the proceeds through a civil claim against them — this is a legal matter separate from the PS26/3 process.
Can a named driver be added to a claim as a joint claimant?
No. PS26/3 redress flows to the finance holder only. Named drivers do not have a separate entitlement under the scheme.
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.
