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Car Finance Commission Complaints — The Complete UK Guide

Parts of the FCA motor finance redress scheme are temporarily suspended while legal challenges are considered. Lenders must continue progressing complaints where required, but they do not currently have to calculate or pay compensation. Eligibility, compensation and the final scheme rules are not guaranteed.

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£7.5bn
FCA estimate under the scheme rules currently being challenged
Around £829
FCA estimated average for agreements receiving compensation under the current rules
12.1m
Agreements estimated by the FCA to qualify under the current rules

Complete Guide Overview

Navigate through our comprehensive guide to car finance claims and the FCA’s PS26/3 redress scheme.

What Is the Car Finance Scandal?

Between 2007 and 2021, most UK car finance agreements were arranged using Discretionary Commission Arrangements — a practice the FCA ultimately banned due to systemic conflict of interest.

On 30 March 2026, the FCA introduced an industry-wide redress scheme covering certain motor finance agreements made between 6 April 2007 and 1 November 2024.

The FCA estimated that around 12.1 million agreements could qualify and that firms could pay approximately £7.5 billion under the scheme as currently designed.

However, several aspects of the scheme are now being legally challenged. These include the rules used to decide whether an agreement was unfair, whether a consumer suffered loss and how any compensation should be calculated. These figures and rules may therefore change.

How exactly did the mis-selling work? See: What Is a DCA (Discretionary Commission Arrangement)? →

The PPI comparison: Under the FCA’s current rules, lenders are required to review whether relevant commission arrangements or contractual ties were adequately disclosed and whether compensation is due. However, these assessment rules are among the issues being challenged and could change.

Could my Agreement be covered?

Your agreement may fall within the current scope of the FCA scheme if the following apply. Meeting these basic conditions does not mean that compensation will automatically be due.

Agreement type

Finance used to buy a car, motorbike, van or campervan. PCP or another form of hire purchase rather than Personal Contract Hire

Start date

Agreement began between 6 April 2007 and 1 November 2024

FCA-regulated lender

The lender and agreement must fall within the regulatory scope of the scheme.

Consumer agreement

The agreement was taken out in a personal name — by an individual or eligible sole trader — and was not excluded because of its business purpose or value.

Previous determination

The complaint has not already been finally determined by a court or the Financial Ombudsman Service, and compensation has not already been accepted for the same issue.

You Do NOT Need Any of the Following

  • You do not need to still have the vehicle
  • You do not need to still be making payments
  • You do not need your original paperwork
  • You do not need to have complained at the time
  • Using an agreement-finding or eligibility-checking service does not confirm that your agreement was unfair or that compensation will be paid.
  • You do not need to use a solicitor, law firm or claims management company. You can complain directly to your lender free of charge.

The scheme covers new and used cars, all makes and models, franchised and independent dealers. It also covers vans, electric vehicles, and motorbikes financed in a personal name.

Arrangements Covered by the Current FCA Rules

The FCA’s current scheme considers three broad types of arrangement. These rules are subject to legal challenge and may change.

Discretionary Commission Arrangements (DCAs)

Before 28 January 2021, some motor finance agreements included a discretionary commission arrangement. This allowed a broker or dealer to influence the customer’s interest rate in a way that could increase the commission received. The FCA banned these arrangements in 2021. The date of an agreement alone does not establish that a DCA was used or that compensation is due.

Coverage: Agreements from 6 April 2007 to 27 January 2021. See: What Is a DCA? →

Unfairly High Fixed Commission

Under the FCA’s current rules, certain high commission arrangements may qualify where the relevant thresholds and other scheme conditions are met.

Coverage: Agreements from 28 January 2021 to 1 November 2024

The Johnson Remedy — Serious Cases

The FCA’s current rules may provide for repayment of the commission plus interest in a limited number of particularly serious cases. These thresholds and the wider redress calculation are included in the matters currently subject to legal challenge.

Impact: Under the FCA’s current rules, repayment of the commission plus interest may apply in a limited number of particularly serious cases. The rules and calculation methodology may change following the legal challenge. See: The Johnson Remedy Explained →

How Might Compensation Be Calculated?

Under the FCA’s current scheme rules, compensation is calculated using a prescribed methodology that considers estimated consumer loss, commission and compensatory interest. The methodology is currently being legally challenged and may be changed or withdrawn. Any figure shown on this page is illustrative only and does not establish entitlement or predict an actual award.

£829FCA estimated average under current rules
3% minCompensatory interest floor
21%Pre-2014 APR adjustment
17%Post-2014 APR adjustment

What Affects Your Specific Payout?

Loan amount

The value and terms of an agreement may affect any calculation, although a higher vehicle value does not necessarily mean that compensation will be due.

Interest rate

The interest rate may be relevant to the lender’s assessment, but a higher APR does not by itself prove that a DCA was used or that an agreement was unfair.

Agreement term

The agreement term and timing may affect any compensation calculation if the agreement qualifies.

Age of agreement

Under the current methodology, the date of the agreement may affect the calculation used. The methodology is subject to legal challenge and may change.

Johnson Remedy

Under the FCA’s current rules, repayment of the commission plus interest may apply in a limited number of particularly serious cases. The rules and calculation methodology may change following the legal challenge.

Multiple agreements are assessed separately

Each agreement must independently satisfy the applicable rules. Having several agreements does not mean that each will qualify or result in compensation.

See: Multiple Car Finance Agreements →

What Happens Next?

Parts of the FCA scheme have been temporarily suspended while the Upper Tribunal considers legal challenges. The hearing is expected to take place either in December 2026 or February 2027, with judgment expected in the following months.

While the proceedings continue, lenders do not currently have to calculate or pay compensation under the scheme. They must continue identifying relevant agreements, gathering information and progressing complaints where the applicable rules have not been suspended.

Some consumers may still receive decisions confirming that they are not owed compensation. If you disagree with such a decision, you can ask the lender to review it and may then be able to refer the complaint to the Financial Ombudsman Service free of charge.

If the scheme is upheld and the judgment is not appealed, the FCA currently expects payments to begin in 2027. If the scheme is overturned in whole or in part, the FCA may revise the scheme or require lenders to resolve complaints individually through the usual complaints process.

If you have already complained and your lender has acknowledged the complaint, you should not normally need to submit the same complaint again.

Can My Lender Still Reject My Complaint?

Yes. The partial suspension does not prevent lenders from telling some complainants that their agreement falls outside the scheme or that they are not owed compensation under the current rules.

Subject to limited exceptions, lenders should provide these decisions by:

18 November 2026 where the agreement began on or after 1 April 2014 and the complaint was made by 30 June 2026.

18 January 2027 where the agreement began before 1 April 2014 and the complaint is made by 31 August 2026.

Within five months of receiving the complaint where it is made after the relevant date above.

Different arrangements may apply where the lender considers the complaint to be out of time or relies on the FCA’s exception relating to certain contractual ties.

If you believe your lender has made a mistake, you can ask it to review its decision. If you remain unhappy, you may be able to refer the complaint to the Financial Ombudsman Service free of charge.

How to Make a Car Finance Complaint

Want to do it yourself, for free? Our complaint letter generator writes a ready-to-send letter in under a minute — no sign-up, no fee.

Follow these steps if you are concerned about commission or contractual arrangements connected with a previous motor finance agreement.

Identify Your Lender and Agreement

Check your records, bank statements, credit file or contact the dealership.

  • Lender name (shown on credit file if no paperwork)
  • Approximate agreement start date
  • Vehicle details (make, model) if available

No paperwork? See: Claiming Without Paperwork →

Decide how to complain

You can complain directly to your lender for free. You do not need a law firm or claims management company. Use the FCA’s official lender list at fca.org.uk for current complaint contact details.

Include in your complaint:

  • Full name and date of birth
  • Address at time of agreement
  • Vehicle details and approximate agreement start date
  • Reference to PS26/3 and undisclosed commission

Submit the complaint

Explain which agreement you are concerned about and ask the lender to investigate any commission arrangement or undisclosed contractual tie.

Wait for the lender’s response

Response times are uncertain while the legal challenge continues.

Due to the partial suspension, a lender may continue gathering and reviewing information but may not currently calculate compensation, confirm that compensation is owed or make payment under the scheme. It may still tell you that your complaint falls outside the scheme or does not qualify under the current rules.

Consider the outcome

Depending on the response and applicable rules, you may be able to refer the complaint to the Financial Ombudsman Service. Observe any deadline stated in the lender’s response.

Already submitted? See: What Happens Next? →

Claim rejected? See: Car Finance Claim Rejected — What to Do →

Check for Previous Finance Agreements

No paperwork needed. You can complain directly to your lender at no cost, or use the FOS free of charge.

Individual outcomes will vary.

Generate a Complaint Letter — Free

An agreement search may help identify previous motor finance agreements. Identifying an agreement does not confirm that it falls within the FCA scheme, that it was unfair or that compensation will be paid. You can complain directly to your lender free of charge. You do not need to use Claims Bible, a law firm or a claims management company.

Your Situation — Specific Guides

Find the guide that matches your specific circumstances.

Agreement Type

Agreement Status

Personal Circumstances

Other Situations

Understanding the Scheme

Find Your Lender

The directory below contains information about lenders and finance providers that may have arranged motor finance agreements during the relevant period. Whether an individual agreement falls within the FCA scheme depends on the applicable rules and the circumstances of that agreement. Find your lender below for specific complaint information and contact details.

Major Lenders

Volkswagen Group — Volkswagen Financial Services (UK) Ltd

Stellantis Group — Stellantis Financial Services UK Ltd

Renault-Nissan-Mitsubishi Alliance — RCI Financial Services Ltd

BMW Group

Ford Group

Japanese Manufacturers

Jaguar Land Rover

Mercedes-Benz

Specialist and Non-Prime Lenders

Other Lenders

FAQs on Car Finance Claims

Common questions about the redress scheme and what to expect from the process.

How do I know if I was mis-sold car finance?

If you arranged PCP or HP finance through a dealer between April 2007 and November 2024 your agreement may fall within the current scope of the scheme, but its date and type alone do not establish that compensation is due. Your lender will assess the agreement under the applicable FCA rules, including any relevant commission arrangement, contractual tie, disclosure and consumer loss. Those assessment rules are currently subject to legal challenge and may change.

See: How Do I Know If I Was Mis-Sold Car Finance? →

Do I need my original paperwork?

No. A free soft credit check will identify all regulated consumer credit agreements on your credit file, including the lender name. You do not need any original documents, and the check does not affect your credit score.

See: Claiming Without Paperwork →

Can I claim if I have already sold the car?

Selling the vehicle does not necessarily prevent an agreement from being considered. The agreement must still satisfy the applicable scheme rules.

See: Claiming After Selling the Car →

Can I claim while still making payments?

Yes. You can submit your complaint while the agreement is live. Your ongoing payments are not affected by submitting a complaint.

I had multiple agreements. Can I claim for all?

Each agreement is assessed separately under the applicable rules. Some, all or none of your agreements may qualify, and any compensation will depend on the circumstances of each agreement and the rules ultimately applied.

See: Multiple Car Finance Agreements →

Is the compensation taxable?

In most cases no, but it depends on your circumstances. The compensatory interest element may be subject to income tax in some cases.

See: Is Car Finance Compensation Taxable? →

What if my claim is rejected?

If your lender tells you that your complaint falls outside the scheme or that you are not owed compensation, you can ask it to review its decision. If you remain unhappy, you may be able to refer the complaint to the Financial Ombudsman Service free of charge.

If the scheme is upheld, consumers will also be able to ask the Financial Ombudsman Service to review whether a lender has applied the scheme rules correctly.

See: Car Finance Claim Rejected – What to Do →

How long will it take to receive payment?

Parts of the FCA scheme have been temporarily suspended while legal challenges are considered. Lenders are not currently required to calculate or pay compensation under the scheme.

The legal challenge is expected to be heard either in December 2026 or February 2027, with judgment expected in the following months. If the scheme is upheld and the judgment is not appealed, the FCA currently expects payments to begin in 2027. This timetable is not guaranteed and could change if the decision is appealed or the scheme is amended or overturned.

See: How Long Does a Car Finance Claim Take? →

How much could your claim be worth?

Try our car finance claim calculator — free, takes under a minute, and uses the official figures for this claim type.

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Calculators and tools

Free tools that estimate what a claim could be worth — a starting point, not a valuation.

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