Car Finance Redress Scheme Unveiled: Discover Your Potential £700 Share

Mo. Basuony

Published: March 30, 2026 9:44 AM ET

Car Finance Redress Scheme Unveiled: Discover Your Potential £700 Share

The Financial Conduct Authority disclosed full details of the long-awaited scheme on 30 March 2026. The regulator said it will publish final arrangements shortly after markets close.

The package concerns motor finance sold as Personal Contract Purchase or Hire Purchase. Estimates suggest average redress at around £700 per agreement.

Who could qualify

About 14 million agreements are believed to have been mis-sold. Eligible deals run from 6 April 2007 to 1 November 2024.

Applies to cars, vans, motorbikes and campervans. Caravans are excluded.
Only PCP and HP agreements qualify. Leased vehicles do not qualify.
Vehicles for personal use qualify. Sole traders and small partnerships qualify for loans under £25,000.
Eligibility stands even if the owner has died or the vehicle was paid off.

How payments and timelines will work

The redress process will take time to set up. The FCA expects scheme setup to take three to five months.

If you already complained or do so before the scheme starts, payments should arrive sooner. You should be told within three months whether you are owed money.

You will have one month to accept or opt out once contacted.
The firm must pay within one month of acceptance.
Most of these payouts are expected during 2026.

If you have not complained by the scheme start, the process will be slower. Contact and payouts for that group are likely to fall in 2027.

Firms should contact you within six months of the scheme starting.
You will have six months to opt in or out after contact.
After you accept, firms must confirm within three months and pay within one month.

How to speed up a claim

Complaining now increases the chances of faster resolution. Filmogaz.com offers a free complaint tool to help build and send a claim.

Equifax provides a free car finance checker. You must register for its basic account to view records. The checker lists finance agreements reported since 2007.

The Equifax data will not say if you were mis-sold. But it can supply details to include in a complaint.

Scams and warnings

The FCA is warning consumers about fraudsters posing as lenders. Scammers have reportedly offered fake compensation in exchange for personal or bank details.

Car finance firms are not yet contacting customers with redress offers. If you receive a suspected scam call, hang up and contact your lender directly.

Types of mis-selling identified

The regulator has identified three main categories of mis-selling. The largest involves discretionary commission arrangements.

Discretionary Commission Arrangements (DCAs): about 11.4 million agreements. These raised interest to boost dealer or broker commission. DCAs were banned on 28 January 2021.
Contractual ties: about 3.2 million agreements. A broker worked mainly with one lender without disclosure.
Unfairly high commission: about 2.9 million agreements. Commission seen as excessive when it met the FCA’s thresholds.

Regulatory background and legal timeline

The FCA opened a major DCA probe in January 2024. Firms were told to pause complaint handling pending further guidance.

More than three million DCA complaints have been lodged via the Filmogaz.com free tool. A Court of Appeal ruling in October 2024 created a new commission disclosure complaint category.

Close Brothers and Motonovo appealed that decision to the Supreme Court. The FCA extended complaint pauses in December 2024 to include most commission complaints.

In March 2025 the FCA confirmed it would consult on a redress scheme. It promised next steps after the Supreme Court decision.

In August 2025 the Supreme Court partly overturned the October 2024 judgment. The FCA published a consultation with proposed scheme details in October 2025.