Car Finance Complaints

The FCA's motor finance redress scheme covers agreements taken out between 6 April 2007 and 1 November 2024 where the lender paid commission to the broker, usually the dealer. It includes personal contract purchase (PCP) and hire purchase deals for cars, motorbikes, vans and campervans. source

The scheme's conditions include that you were not told about at least one of: a discretionary commission arrangement, a high commission arrangement (at least 39% of the total cost of credit and 10% of the loan), or a contractual tie to the lender. source

You may get nothing if the commission was £120 or less before 1 April 2014, or £150 or less after, or if you paid no interest. You are also excluded if you leased through Personal Contract Hire, or already had a Financial Ombudsman or court decision or accepted redress. source

The FCA estimates average redress at about £829 per agreement (it says about £830), but amounts vary and some people get nothing. About 90,000 cases receive all the commission plus interest. Interest is simple, at the Bank of England base rate plus 1%, with a 3% minimum. source

On 2 July 2026 the Upper Tribunal suspended parts of the scheme. Until the legal process concludes, lenders do not need to calculate or pay compensation under the scheme. The FCA says the best thing consumers can do is complain to their lender. No timing for the end of the process was given. source

The scheme covers some types of mis-selling that lenders previously would not accept complaints about. If your lender rejected your complaint before, complain again. Citizens Advice's page does not cover complaints about unaffordable lending. source

If the scheme is upheld by the court and not appealed, the FCA expects payments to begin in 2027. The legal case is due to be heard in December 2026 or February 2027. source

You do not need a claims management company or law firm. Their fees can reduce what you receive, and the FCA has set up a taskforce targeting poor handling of claims by some of them. The FCA will never ask for your bank details, PIN or passwords. source

A claims management company may keep up to 30% of any compensation, according to Citizens Advice. You do not need one to complain to your lender. source

To find your lender, check old bank statements, contact the dealer, or check your credit file. The FCA says Equifax's Car Finance Checker app includes most records back to 2007, and you can check your credit file free through Experian and TransUnion. Citizens Advice says MoneyHelper also offers a free check. source

The FCA's list of lenders includes contact details, template letters and complaint forms. If the person who took out the finance has died, say you are claiming for someone else and include their name, address, date of birth and finance details. The lender may ask for a will or grant of probate. source

Lenders must contact people who have not complained but may be owed money. If you have not been contacted, you can still complain to your lender until 31 August 2027. source

If you are bankrupt or in an IVA, tell your lender and your official receiver or insolvency practitioner. source

If a lender needs to respond to you, the FCA's dates are: for agreements from 1 April 2014 where you complained by 30 June 2026, the lender should contact you by 18 November 2026. For earlier agreements where you complained by 31 August 2026, by 18 January 2027. Because of the legal challenge, timing is uncertain, and no reply by these dates does not mean you are owed nothing. source

If you are offered redress, you have 1 month to accept or challenge it. If you are still unhappy, you can go to the Financial Ombudsman by the date in the redress letter. Once you accept, the lender has 1 month to pay. If you are not owed compensation, expect a reply within about 5 months for complaints made after the deadlines. source

If you think your lender has not followed the scheme rules, you can refer your case to the Financial Ombudsman Service. source

This borrowing is not covered by the Financial Services Compensation Scheme, so you may get nothing if your lender fails. Lenders that operate only in Northern Ireland may not be FCA-regulated, so you may lose protections such as Financial Ombudsman referral. source