What is the car finance commission scandal about?

When millions of people bought a car on finance, the dealer or broker arranging it often received a commission from the lender — and in many cases the customer wasn't told, or the commission was linked to the interest rate they were charged (a 'discretionary commission arrangement'). The Financial Conduct Authority (FCA) has decided many of these customers were treated unfairly, and has set up an industry-wide redress scheme so lenders compensate people who lost out.

Who might be owed compensation?

Broadly, people who took out motor finance — like Hire Purchase (HP) or Personal Contract Purchase (PCP) — on a car, van or motorbike between 6 April 2007 and 1 November 2024, where the lender paid commission to the broker or dealer. It doesn't cover buying a car outright with cash or a personal loan that wasn't arranged through the dealer. The FCA estimates millions of agreements are in scope. You don't need to know the commission details — the scheme is designed to check that for you.

Do I need to do anything, or will I be contacted?

You don't have to do anything right now to be included. Under the FCA scheme, lenders are expected to contact eligible customers — broadly by the end of 2026 for more recent agreements, and into 2027 for older ones. The scheme has been confirmed but is also subject to legal challenge, so the exact start date and timings could still change. If you'd rather, you can complain directly to your lender yourself, for free, at any time.

Should I use a claims company to make a claim?

No — there's no need, and it can cost you dearly. The FCA has been clear you don't 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 simple, and the redress scheme is designed so eligible customers are found and paid without anyone taking a cut. Be wary of cold calls, texts and ads promising a car finance payout — some are scams.

Car finance commission: are you owed money?

Q: How much could I get?

It varies a lot by agreement, and no honest source can promise you a specific figure. The FCA has estimated the total industry payout in the billions across millions of agreements, but individual amounts depend on your finance deal, the commission and interest involved, and the final scheme rules — which are still being settled and are under legal challenge. Treat any company quoting you an exact payout up front with suspicion.

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.

✓ Source verification

Primary sourceFCA — Motor finance consumer redress scheme (PS26/3) and the FCA's motor finance complaints pages

Specific URLfca.org.uk — car finance complaints

Last verified15 June 2026 (the confirmed FCA redress scheme, the 6 Apr 2007–1 Nov 2024 window, the lender-will-contact-you timeline, the ongoing legal challenge and the “don't use a claims firm” warning web-checked against the FCA)

ConfidenceHigh on the framework, lower on exact figures and timing — the FCA has confirmed an industry-wide motor finance redress scheme covering agreements from 6 Apr 2007 to 1 Nov 2024 where commission was paid to the broker/dealer; lenders are expected to contact eligible customers (broadly by end 2026 / into 2027); the scheme is under legal challenge so start dates/timings may change; the FCA estimates a multi-billion-pound total over millions of agreements but individual amounts vary. The FCA has stated consumers do not need a claims firm.

Key factsHP/PCP car finance 6 Apr 2007–1 Nov 2024 with commission to broker/dealer · FCA industry-wide redress scheme confirmed (PS26/3) but under legal challenge · lenders to contact eligible customers (~end 2026 / into 2027) · complain to your lender free at any time · no claims firm needed (can cost 30%+) · individual amounts vary, figures are FCA estimates · not cash buys or separate personal loans

ScopeUK-wide (FCA-regulated). Information, not financial advice — check the FCA's motor finance pages and MoneyHelper, and complain free to your own lender. This is a fast-moving area; confirm the latest before acting.

Car finance compensation — common questions

What's the car finance commission scandal?

Dealers and brokers arranging car finance often got commission from the lender that customers weren't told about — sometimes linked to the interest rate (a discretionary commission arrangement). The FCA decided many people were treated unfairly and has confirmed an industry-wide redress scheme so lenders compensate them.

Who might be owed money?

Broadly, people who took HP or PCP car finance between 6 April 2007 and 1 November 2024 where the lender paid commission to the broker or dealer. It doesn't cover cash purchases or a separate personal loan not arranged via the dealer. The FCA says millions of agreements are in scope.

Do I need to do anything?

Not to be included — lenders are expected to contact eligible customers (broadly by end 2026, into 2027 for older agreements). The scheme is confirmed but under legal challenge, so timings may change. You can complain to your lender directly, free, at any time if you prefer.

Should I use a claims company?

No. The FCA says you don't need one, and using a claims firm could cost you over 30% of any payout. Complaining to your lender is free, and the scheme is built to pay eligible customers without a middleman. Beware cold calls, texts and ads about car-finance payouts — some are scams.

How much could I get?

It varies a lot and no honest source can promise a figure. The FCA estimates the total industry payout in the billions across millions of agreements, but your amount depends on your deal and the final rules, which are still being settled and under legal challenge. Be suspicious of anyone quoting you an exact payout.

Sources The confirmed FCA motor finance redress scheme, the 2007–2024 window, the contact timeline, the legal challenge and the “don't use a claims firm” warning · FCA — Car finance complaints and FCA — confirms motor finance redress scheme. SortedUK is not a regulated adviser and this is general information — check the FCA's pages and MoneyHelper, and complain free to your own lender. This is a fast-moving area. Last reviewed: 15 June 2026.

Bought a car on finance? You may be owed money — for free.

What it’s all about

Who might be owed money

Where it stands now

What to do — and the trap to avoid

Car finance compensation — common questions

If you’re owed it, you’ll get it — for free.