What it’s all about
When you bought a car on finance, the dealer or broker who arranged it often got a commission from the lender. In many cases you weren’t told — and sometimes the commission was linked to the interest rate you were charged (a “discretionary commission arrangement”), so the more interest you paid, the more they earned.
The Financial Conduct Authority (FCA) decided many customers were treated unfairly, and has confirmed an industry-wide redress scheme so lenders compensate people who lost out.
The good news
The scheme is designed to find and pay eligible customers — you shouldn’t have to fight for it, and you certainly shouldn’t have to pay anyone a cut to get what’s yours.
Who might be owed money
Broadly, you may be in scope if you took out motor finance on a car, van or motorbike where the lender paid commission to the broker or dealer:
| Likely in scope | Not covered |
|---|
| Hire Purchase (HP) or PCP between 6 April 2007 and 1 November 2024 | Buying a car outright with cash |
| Finance arranged through a dealer or broker | A separate personal loan not arranged via the dealer |
You don’t need to know the commission details — the scheme is meant to check that for you. Dig out any finance paperwork you still have (your credit history may also show old agreements).
Where it stands now
The redress scheme has been confirmed by the FCA, but it’s also subject to legal challenge — so the exact start date and timings could still move. Two things to hold onto:
- You’ll be contacted. Lenders are expected to reach out to eligible customers — broadly by the end of 2026 for more recent agreements, and into 2027 for older ones.
- You don’t have to act now to be included. If you’d rather not wait, you can complain to your lender yourself, free, at any time.
Figures are estimates
The FCA has estimated the total payout across the industry in the billions, over millions of agreements — but individual amounts vary hugely and the final rules are still being settled. No honest source can promise you a specific payout.
What to do — and the trap to avoid
Never pay a claims firm
The FCA is clear: you
do not need a claims management company or law firm. If you use one, you could
lose more than 30% of any money you get. Complaining directly to your lender is free, and the scheme is built to pay eligible customers without anyone taking a cut. Treat cold calls, texts and ads promising a car-finance payout with suspicion — some are
scams.
Do this now
Check whether you had HP or PCP car finance between 2007 and 2024 and keep any paperwork safe. Then either wait to be contacted by your lender, or complain to the lender directly for free — you can use the letter writer to draft it.
Keep an eye on the FCA’s motor finance pages for the latest, and get free, impartial money guidance from MoneyHelper. Check what else you’re owed with Win Back Money.