Motor Finance Claims
Motor Finance Claims
The FCA has confirmed a major motor finance redress scheme. If you took out vehicle finance between 6 April 2007 and 1 November 2024, your agreement may have included an undisclosed or unfair commission paid by the lender to the car dealer or broker. In many cases, these arrangements were not clearly disclosed to customers and could have made your loan more expensive.
If you are concerned that this may have affected your agreement, our team can review the paperwork, explain your options, and advise whether you may be entitled to compensation.
What are PCP Claims ?
A PCP (Personal Contract Purchase) claim is a complaint made against a lender or broker where your car finance was mis-sold or key information was not made clear at the point of sale.
Common grounds include:
Failure to disclose commissions paid to the dealer or broker.
Unexplained or higher interest rates, including those affected by commission arrangements.
Inadequate or missing affordability checks.
You May Have A Claim If Any Of The Following Apply:
- You entered into a PCP or HP car finance agreement between 6 April 2007 and 1 November 2024.
- The commission model was discretionary, allowing the dealer or broker to set or influence your interest rate.
- A large or significant commission formed part of your total cost of credit and this was not clearly explained.
- You were not told that the dealer or broker would receive a commission from the lender.
- You were charged a higher interest rate without a clear explanation.
- Affordability checks were inadequate or not carried out, or the finance became unaffordable.
- You felt pressured to sign, or you were misled about your options.
- Key terms were not made clear, for example the repayment schedule or balloon payment.
- The relationship between the lender and the dealership was not transparent, or the commission structure was not properly explained.
Note: Compensation applies to agreements with Discretionary Commission Arrangements (DCAs), high commission arrangements, or undisclosed “tied” arrangements where you were not properly informed. Not every PCP or HP agreement will qualify. Eligibility depends on your specific circumstances and the terms of your agreement.
Our Simple 3-Steps Process
1.
Agreement Review
We examine the details of your finance agreement to check for signs of potential mis-selling, undisclosed commissions, or unfair charges.
2.
Claim Preparation
If your agreement appears eligible, we help gather the necessary evidence and prepare your claim for submission.
3.
Outcome
If your claim is successful, compensation will usually be paid directly to your bank. We’ll keep you updated throughout. Please note compensation is not guaranteed.
Documents we can use
Your finance agreement and any add-on or warranty paperwork.
Dealer sales invoice or order form.
Pre-contract information and finance quotation.
Emails or letters with the dealer, broker or lender.
Statements of account, payment schedules or settlement letters.
Proof of identity and address.
Bank statements or payslips used for affordability checks.
Vehicle details, such as registration number and delivery documents.
Important Update
March 2026
The FCA has confirmed a major motor finance redress scheme to compensate consumers for unfair, undisclosed commission arrangements on vehicle finance agreements taken out between 6 April 2007 and 1 November 2024. Around 12.1 million agreements were affected, with lenders expected to pay out approximately £7.5 billion in compensation. The scheme was confirmed via Final Policy Statement PS26/3 on 30 March 2026. Payouts are expected to begin in 2026, with the majority completed by the end of 2027.
What This Means For You
For anyone who has not yet submitted a complaint, please do so as quickly as possible to lead to a faster payout from the lender. We remain ready to review each case.
⚠ Do not wait — submitting your complaint now places you in the earliest wave of payments.
Timeline & Key Dates
Date | What Happens |
30 March 2026 | FCA Final Policy Statement (PS26/3) confirmed the redress scheme |
30 June 2026 | Implementation deadline for loans taken out from 1 April 2014 onwards |
31 August 2026 | Implementation deadline for loans taken out between 6 April 2007 and 31 March 2014 |
Late 2026 – Early 2027 | Major payout phase begins. Lenders have 3 months from implementation deadline to notify complainants |
31 August 2027 | Final deadline for consumers to submit a complaint if they have not been contacted |
Next Steps for Consumers
- Check your records for any PCP or HP agreements for vehicles (cars, vans, motorbikes) active between 2007 and 2024.
- Submit a complaint as quickly as possible to ensure a faster payout from the lender.
- Await contact from lenders, who will check their records and reach out between mid-2026 and early 2027.
- Review any compensation offer received — if unhappy, refer it to the Financial Ombudsman Service.
Supreme Court Ruling – 1 August 2025
The Supreme Court has clarified:
- Fixed-fee (non-DCA) commission arrangements cannot be used as grounds for claims against lenders.
- Discretionary Commission Arrangements (DCAs) may still lead to successful claims under the unfair relationship provisions of the Consumer Credit Act.
FCA Redress Scheme — Confirmed 30 March 2026
The FCA has confirmed the following:
- The motor finance redress scheme officially goes ahead, with payouts expected to begin in 2026 and most consumers compensated by the end of 2027.
- Approximately 12.1 million agreements are estimated to have been affected, with lenders expected to pay out around £7.5 billion in total.
- Lenders have until 30 June 2026 (for agreements from April 2014) and 31 August 2026 (for earlier agreements from April 2007) to complete their reviews.
- The average payout is estimated at £829* per eligible agreement.
- Consumers who have not been contacted by their lender have until 31 August 2027 to submit a complaint.
Please note: Lenders could still challenge the scheme in court, particularly regarding agreements made before 2014. Timelines remain subject to change.
For more details: FCA confirms motor finance redress scheme
Our Transparent fees
We are fully dedicated to supporting clients in pursuing any compensation they may be entitled to under the confirmed FCA redress scheme. We strongly recommend submitting your complaint as soon as possible to ensure you are included in the earliest wave of payments.
- We operate on a No Win, No Fee basis.
- If your claim succeeds, our legal fees are up to 36% (including VAT) e.g. If you receive average of £829 compensation, our fee would be £298.44, leaving you £530.56.
Your Free Alternatives
You can make a complaint directly to your lender or the Financial Ombudsman Service at no cost. You do not need to use a solicitor or claims management company.
Submitting your complaint as quickly as possible will lead to a faster payout from the lender.
Further Information:
Discretionary commission arrangements
Dealers or brokers could set your interest rate within a permitted range. The higher the rate, the more commission they earned, creating a conflict of interest and leading many consumers to overpay. The FCA’s final findings reported that, on a typical £10,000 agreement, a discretionary model could add around £1,100 in extra costs. These arrangements were banned by the FCA in 2021.
Non-discretionary commission arrangements
The dealer or broker received a fixed payment from the lender for arranging the finance, regardless of the interest rate. This model did not allow the dealer to adjust your rate and is generally less likely to have led to mis-selling. However, concerns can still arise where the commission was disproportionately high compared with the total cost of borrowing or where the commission was not properly explained.
Step
Call us to discuss the details of your finance agreement and the issues you’ve experienced.
Step
Review and sign our straightforward sign-up documents, sent conveniently by email.
Step
If your claim is successful, compensation will be paid directly to your bank. We’ll keep you updated throughout the process.
Your Claim, Simplified in 3 Steps
We Make the Process Straightforward
We can help assess whether you may be entitled to compensation.
Meet Our Team
We fight For
Your Rights
Our dedicated team works to challenge financial misconduct and protect consumer rights. With expertise and care, we guide clients through the claims process, explaining your options clearly and supporting you at every stage.