Scheme update: partly on hold pending court hearing

Car finance compensation, explained in plain English

If you bought a car, van or motorbike on finance between 2007 and 2024, you may be owed money. Find out what's happening with the FCA scheme, and how to complain to your lender yourself without paying anyone a penny.

How to claim for free See the latest updates

Last updated 10 November 2026

Court hearing on the scheme
98days to go
The Upper Tribunal hears the legal challenges from 16 February to 3 March 2027.
30 MAR 2026FCA confirms the compensation scheme
2 JUL 2026Parts suspended while challenges are heard
FEB–MAR 2027Court hearing, judgment expected after
Independent information
We never collect your details
No fees, no claims, no catch
Based on official FCA guidance
At a glance

The scheme in numbers

12.1m
Car finance agreements the FCA estimates are eligible
£830
Estimated average payout per agreement
£7.5bn
Total compensation the FCA expects lenders to pay
£0
Cost of complaining to your lender yourself

Figures are FCA estimates published 30 March 2026. Payments are on hold while the court challenge is decided.

Background

What happened?

For years, many car finance deals included commission paid by the lender to the dealer or broker who arranged the loan. Customers often weren't told about it, or how it affected what they paid.

2007+

Hidden commission

Some deals let dealers raise the interest rate to earn more commission. Others had very high commission, or exclusive lender–dealer ties customers weren't told about.

2025

The Supreme Court ruling

In August 2025 the Supreme Court ruled on the Johnson case. It found that in some circumstances, failing to disclose commission made the relationship between lender and customer unfair.

2026

The FCA scheme

On 30 March 2026 the Financial Conduct Authority confirmed an industry-wide scheme. Lenders must check agreements and compensate customers who were treated unfairly.

Eligibility

Who could be covered?

You may be covered if

  • You used finance for a car, van, motorbike or campervan between 6 April 2007 and 1 November 2024
  • It was hire purchase, including Personal Contract Purchase (PCP)
  • You weren't told about certain arrangements between the lender and the broker or dealer
  • Even if you've paid it off, sold the car, or it was repossessed

You're generally not covered if

  • You leased the vehicle on Personal Contract Hire (PCH)
  • The Financial Ombudsman or a court has already decided your complaint
  • You've already accepted compensation
  • It was a high-value loan, or a business agreement over £25,000
  • It was genuine 0% interest-free finance

Outside the scheme? You can still complain to your lender in the normal way.

Where things stand

Latest: the scheme is partly on hold

The scheme has been challenged in court. Until the challenge is decided, lenders don't have to calculate or pay compensation under it. You can still complain now, and the FCA recommends doing so if you have concerns.

30 March 2026 Done

The FCA confirms the motor finance compensation scheme.

2 July 2026 Done

The Upper Tribunal suspends parts of the scheme while legal challenges are heard. Payments are on hold.

● We are here: November 2026
2027 To be confirmed

If the scheme is upheld and not appealed, the FCA expects payments to begin in 2027. If it's overturned, lenders may instead handle complaints individually within the normal 8-week timescale.

Not heard from your lender? That doesn't necessarily mean you're owed compensation. Some people won't hear anything until the legal process ends.
Do it yourself

How to complain for free

You don't need a claims company or law firm. These are the steps the FCA sets out.

1

Find your lender

Check paperwork or bank statements, ask the dealer, or check your credit file. The free Equifax app's car finance checker shows most records back to 2007.

2

Complain to them

Use the FCA's list of lenders for genuine contact details, a complaint form or a free template letter. MoneySavingExpert also has a free tool.

3

Wait for a reply

Your lender will tell you whether you're owed compensation. While the scheme is partly suspended, the timing is uncertain.

4

Accept or challenge

You'll have a month to respond. Still unhappy? The Financial Ombudsman Service can look at it for free.

Find your lender on the FCA list
Protect yourself

Claims firms and scams

Do I need a claims company?

No.

The FCA says you don't need a claims management company or law firm to take part. Using one could cost you more than 30% of your compensation in fees.

Already signed up and want out? Any exit fee must be reasonable and reflect the work done. If you were signed up without consent or misled, you can ask to leave for free. Don't sign up with more than one firm.

Watch out for scams

  • You should never be asked to pay a fee to receive compensation
  • Never share your PIN or online banking passwords
  • Only give bank details when you're sure it's your genuine lender
Unsure a call is genuine? Call the FCA0300 124 8899
Questions

Frequently asked questions

Should I complain now or wait?
The FCA says the best thing to do, if you have concerns, is to complain to your lender now. It's free. If you're not contacted, the scheme rules let you complain up to 31 August 2027, but those rules are subject to the court challenge.
How much could I get?
It depends on your agreement. The FCA estimates an average of around £830 per agreement, including interest. Cases most like the Johnson case, with very high commission, could get all the commission back plus interest. Payouts are capped in about 1 in 3 cases.
Can I claim if I've paid off the finance or sold the car?
Yes. You can still be eligible if the agreement has ended, you no longer own the vehicle, or it was repossessed. If you had more than one eligible agreement, you may be due more than one payment.
Can I complain for someone who has died?
Yes. Complain directly to the lender using your own details. Make clear you're complaining on someone else's behalf, and include as much as you know about the person and the finance.
Will complaining get me blacklisted?
No. Complaining to your lender is your right, and you can't be blacklisted for doing it.
Who runs this site?
Conco is an independent information site. We don't collect your details, refer you to claims firms or earn money from your claim. Always check the official sources above for the latest position.

Ready to check your car finance?

It takes a few minutes, costs nothing, and you deal directly with your lender.

Start on the FCA website