What Is the Car Finance Redress Scheme?

The Short Answer

• Who Is Covered

  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 Conditions

  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

• When You May Get Nothing

  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

• How Much You Might Get

  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

• The Court Suspension

  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