Millions of UK drivers could receive around £700 per car finance agreement for historic commission mis-selling between 2007 and 2024. The FCA’s proposed redress scheme points to 8–12bn in payouts across ~14m agreements, with final rules expected in early 2026—but you can prepare your claim now with National Claims.
What is the car finance scandal?
From 2007 to 2020, many brokers and dealers used “discretionary commission arrangements” (DCAs), where they could increase your interest rate to earn more commission—often without clearly telling you. The FCA has been investigating, concluding that this created unfairness and likely led many consumers to overpay interest.
In October 2025, the FCA proposed a mass redress scheme. Based on current modelling, average compensation is ~£700 per agreement, affecting up to ~14 million car finance deals (PCP and HP) made between April 2007 and 1 November 2024. FCA+1
Good to know: The FCA has extended the pause on complaint time-limits to coordinate a consistent outcome, with the general pause on most commission complaints set to lift by 31 May 2026. Leasing complaints were excluded and must now receive responses under normal rules from 5 December 2025.
Who could be eligible?
You may qualify if you:
- Financed a car, van or motorbike between 2007 and 2024 via PCP or Hire Purchase.
- Dealt with a broker/dealer who may have adjusted the APR without clear commission disclosure.
- Paid more than you otherwise would have due to commission-linked interest.
Examples of in-scope agreements
- PCP/HP from a dealer forecourt in 2015, broker set the interest rate.
- Manufacturer finance (e.g., captive lenders) where dealer commissions may have influenced APR.
How much might you receive?
While your exact figure depends on how much extra interest you paid and for how long, the FCA’s working average is about £700 per agreement. Some will be lower; some higher.
Compensation estimate (illustrative)
| Scenario | Typical overpayment drivers | Indicative payout* |
|---|---|---|
| Short-term PCP, small APR uplift | 0.5–1.0% APR uplift over 24–36 months | £200–£500 |
| Standard PCP/HP, moderate uplift | 1.0–2.0% APR uplift over 36–48 months | £500–£900 |
| Long-term HP, larger uplift | 2.0–3.0% APR uplift over 48–60 months | £900–£1,800 |
*Illustrative modelling only. Your outcome will depend on the actual interest overpaid and statutory/additional interest rules in the final scheme. FCA modelling suggests ~£700 average.
Important timing note: The FCA says final rules for the scheme are expected in early 2026. The complaint-handling pause for most commission complaints ends 31 May 2026, so the process can move forward. National Claims can build and submit your case now so you’re ready when payments begin.
Why act now (even though payments are likely in 2026)?
- Evidence gets stale: Dealer groups change hands; data can be harder to retrieve later.
- Priority positioning: Those who have already complained may be prioritised. We package your claim so lenders have what they need.
- Policy shifts: Public debate (including on potential tax treatment of payouts) shows this scandal is evolving; having representation keeps you informed.
How National Claims helps
National Claims is focused on maximising your redress with minimal effort on your part:
- Free eligibility check – We confirm if your agreement is in scope (PCP/HP, 2007–2024).
- Evidence gathering – We obtain your credit agreement, settlement figures and APR/commission trails where available.
- Loss calculation – We model interest overpayment and any statutory/additional interest likely under the scheme.
- Submission & monitoring – We prepare your claim in line with the evolving FCA framework and monitor lender responses.
Mandatory cost info: Customers pay up to 25% (incl. VAT) of the amount recovered towards solicitor costs and if you cancel outside your cooling off period, you may be charged a fee.
No insurers needed. You do not claim from an insurer—you claim with National Claims, who will connect you with specialist solicitors to pursue your compensation directly under the FCA-led framework.
Documents you’ll need (or we’ll help you get them)
- Finance agreement (PCP/HP), including APR and commission disclosure wording.
- Settlement statements or final payment schedule.
- Proof of payments (bank statements may help if figures are disputed).
- Any emails/texts from the broker or dealer about rates or commission.
- Your full name, previous addresses (if you moved since the deal), and vehicle reg/VIN.
Key dates and what they mean for you
- 11 Jan 2024: FCA launched review into DCAs and paused some complaint deadlines. FCA
- Oct 2025: FCA proposed redress scheme (~£700 average; ~14m agreements impacted). FCA
- 5 Dec 2025: Leasing complaints must get final responses under normal rules (excluded from scheme). FCA
- 31 May 2026: Pause on most commission complaints lifts so cases can proceed. FCA
FAQs: Car finance compensation 2025–2026
1. Will everyone get exactly £700?
No. £700 is the FCA’s average. Your payout depends on actual overpaid interest and how the final scheme calculates redress.
2. Does this apply to leasing (PCH)?
No. Leasing complaints are excluded from the scheme and must be handled under standard rules from 5 December 2025.
3. Should I wait for 2026 to complain?
We recommend starting now. The FCA has signalled that complaints will move once the pause ends, and those already in the system may be prioritised. National Claims will prepare your file so it’s ready.
4. Is this a government scheme?
The scheme is designed and enforced by the FCA (the UK’s financial regulator). See their consumer guidance on car finance complaints.
5. Can I claim if I used manufacturer finance?
Potentially yes—what matters is whether a commission-influenced rate applied and proper disclosure was missing.
Trusted sources and further reading (external)
- FCA consumer page – Car finance complaints (eligibility, process, updates). FCA
- FCA press update – Proposed scheme and ~£700 average compensation. FCA
- Government (Insolvency Service) – Position note following court judgment and FCA response. GOV.UK
- UK news coverage – Context on costs, lender provisions, and policy debate. The Guardian+1
Related help from National Claims (internal)
- Accident at Work Claims – support for unsafe systems, PPE failures and manual handling injuries.
- Road Traffic Accident Claims – pedestrians, cyclists, passengers and drivers.
- Housing Disrepair Claims – damp, mould, leaks and structural issues impacting health.
Explore our guides: Accident at Work Claims, Road Traffic Accident Claims, Housing Disrepair Claims.
How to start your claim with National Claims (today)
- Take a 60-second check – Tell us when and how you financed your vehicle.
- Upload evidence or authorise retrieval – We’ll obtain agreements and payment data.
- We calculate your loss – Using FCA-aligned methods to quantify overpaid interest.
- We submit & track – We liaise with the finance provider and keep you updated.
Start your car finance compensation claim with National Claims now. The earlier you start, the sooner your case can be queued for payment once the FCA framework goes live.
Customers pay up to 25% (incl. VAT) of the amount recovered towards solicitor costs and if you cancel outside your cooling off period, you may be charged a fee.
Why trust National Claims?
- Specialist claims focus across financial mis-selling and personal injury.
- Transparent fees and regular updates throughout your matter.
- Evidence-led approach aligned to FCA guidance and timelines.
Final word
If you financed a vehicle between 2007 and 2024, you may be owed substantial compensation—with ~£700 per agreement a realistic average, per the FCA’s current modelling. Don’t miss out.
Don’t wait while your claim window closes. Speak with National Claims today. We’ll connect you with experienced solicitors who understand your case and fight for the maximum compensation you deserve
About National Claims
This article was written by the National Claims content team. Our specialists have years of experience helping people across the UK with personal injury, road traffic accident, and housing disrepair claims. We work alongside regulated solicitors to ensure our information is accurate, up-to-date, and genuinely useful for anyone seeking to understand their rights after an accident.
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