Specialist Motor Finance 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 vehicle through Specialist Motor Finance between 6 April 2007 and 1 November 2024, you may be entitled to compensation under the FCA confirmed motor finance redress scheme (PS26/3, 30 March 2026). Specialist Motor Finance is an FCA-regulated non-prime motor finance lender operating through dealer networks. Average payout: £829.
Who Is Specialist Motor Finance?
Specialist Motor Finance Limited is a UK non-prime motor finance lender providing PCP and HP agreements through independent and franchised dealer networks. It targets customers who may have been declined by mainstream lenders, including those with impaired credit histories or thin credit files. As a specialist third-party lender without a manufacturer brand association, Specialist Motor Finance does not benefit from the contractual tie exclusion that applies to captive lenders — meaning all three PS26/3 grounds apply in full.
Is Specialist Motor Finance Covered by PS26/3?
Yes. Specialist Motor Finance Limited is FCA-regulated and all regulated PCP and HP agreements it arranged through UK dealer networks between 6 April 2007 and 1 November 2024 are within scope of PS26/3. The complaint deadline is 31 August 2027.
Three Grounds for a Specialist Motor Finance Claim
1. Discretionary Commission Arrangements (DCAs)
Prior to 28 January 2021, dealers arranging finance through Specialist Motor Finance could set your interest rate within a lender-defined range. Non-prime lenders operating through third-party dealers had among the highest DCA rates because customers had the fewest alternatives.
2. Unfairly High Fixed Commission
Post-January 2021 agreements may qualify where the fixed commission met the FCA threshold of 39% of the total cost of credit and 10% of the loan amount.
3. Contractual Ties
Where Specialist Motor Finance had exclusive or preferential arrangements with specific dealer networks that were not disclosed, this is compensable under PS26/3.
How Much Could You Receive?
The FCA confirmed average payout is £829. Non-prime agreements typically involve higher APRs which can produce above-average compensatory interest. Use our car finance claims calculator to estimate your payout.
Scheme Timetable (Original Dates, Now Suspended)
Post-April 2014 agreements: Complain before 30 June 2026 → determination by 30 September 2026 → payment by November 2026
Pre-April 2014 agreements: Complain before 31 August 2026 → determination by 30 November 2026 → payment by January 2027
Final complaint deadline: 31 August 2027
How to Complain
Submit your complaint to Specialist Motor Finance Limited using the contact details on your original agreement or via the FCA’s official lender list at fca.org.uk/consumers/car-finance-complaints/list-lenders. Include:
- Your full name and date of birth
- Your address at the time of the agreement
- The vehicle make, model and registration number if known
- The approximate start date of the finance agreement
- A statement that you are complaining about undisclosed commission arrangements under the FCA motor finance redress scheme (PS26/3)
No paperwork? See: Claiming Without Paperwork
Related Pages
Multiple Car Finance Agreements
Frequently Asked Questions
I had bad credit when I used Specialist Motor Finance. Can I still claim?
Yes. Your credit history does not affect eligibility. See: Bad Credit Car Finance Claim
I financed after January 2021. Am I eligible?
Yes. PS26/3 covers agreements up to November 2024 under the unfairly high fixed commission ground.
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.
