UK Moves to Improve Access to Justice as FCA Signals Changes to Car Finance Compensation

The UK is taking practical steps to improve access to justice, while the Financial Conduct Authority (FCA) moves closer to a nationwide approach for car finance compensation. If you took out car finance between 2007 and 2024, you could be owed money back and importantly, there are clear actions you can take now to protect your position.

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The FCA is working towards an industry-wide motor finance compensation scheme covering customers treated unfairly between 2007 and 2024, while extending complaint-handling timelines and lifting the current pause on 31 May 2026. Meanwhile, the UK government is also funding legal support services and reforming litigation funding to help ordinary people pursue fair outcomes.

What’s changing on car finance compensation

The FCA has been consulting on an industry-wide redress scheme to compensate motor finance customers who were treated unfairly especially where commission arrangements were not properly disclosed and customers were denied the chance to negotiate or shop around.

Key dates you should know

• The FCA has confirmed the pause on handling certain motor finance complaints will lift on 31 May 2026.
• The FCA also issued a policy statement changing complaint-handling rules, including extending the time firms have to provide final responses for relevant commission complaints.
• The FCA has said an industry-wide scheme is the most efficient way to deliver outcomes and provide certainty for consumers and firms.

How much could people receive?

The FCA has indicated (based on its estimates) that:

• People could receive around £700 per agreement on average, and
• Lenders could pay around £8.2 billion in compensation overall (based on FCA assumptions and participation).

That said, your amount depends on the finance type, the commission setup, affordability, what you were told, and whether the deal was unfair in practice.

UK “access to justice” reforms: Why they’re happening at the same time

Car finance redress is part of a wider shift: regulators and government are trying to make it easier for ordinary people to challenge unfairness — without being priced out.

1) Legal support funding for everyday problems

The government announced nearly £20 million in grant funding over three years to improve access to legal support for issues including housing, employment, debt, and family matters.

2) Litigation funding reforms after PACCAR

The government also confirmed plans to legislate to reduce uncertainty around litigation funding agreements and introduce proportionate regulation — explicitly linking this to improving access to justice in “David vs Goliath” disputes.

3) Pressure to reduce court delays

Separately, major backlog pressures continue to drive reform debates (for example, proposals to move some cases away from Crown Court). While this is criminal justice, it still reflects the same core issue: delays reduce real-world access to justice for victims and claimants.

Car finance compensation: Signs your agreement may have been unfair

Even if you never complained before, you may still have a valid basis to pursue redress if:

• Commission wasn’t explained clearly (or was hidden)
• You were told the deal was “the best available” without meaningful comparison
• The monthly payments were unaffordable, yet finance was approved
• You were steered towards a higher rate without a transparent reason
• You weren’t informed you could negotiate the rate or shop around

Because the FCA is focused on fair outcomes, evidence and clarity matter — and acting early usually helps.

Good evidence to collect now (if you have it):

• Your finance agreement / credit agreement
• Any emails or messages with the dealer or broker
• Screenshots of adverts or “representations” made to you
• Bank statements showing payments
• Notes of what you were told (write them now while it’s fresh)

Other compensation routes National Claims can help with (beyond car finance)

Many people who search for car finance redress also face other issues where compensation may be available. National Claims can help you pursue a range of claims and crucially, we connect you with experienced solicitors who can assess eligibility quickly.

Housing disrepair compensation

If your landlord failed to repair hazards like mould, damp, leaks, heating failures, or infestations, you may be able to claim for:

• Damage to belongings
• Inconvenience and distress
• Health impacts (especially respiratory symptoms)

Also, acting promptly helps because evidence (photos, reports, GP notes) is stronger when it’s current.

Accident at work claims

If you were injured due to poor training, unsafe equipment, lack of PPE, or unsafe systems, you may have a claim. However, employers and insurers often dispute liability, so early documentation is vital.

Road traffic accidents, slip/trip/fall, and occupiers’ liability

If you were injured in a public place, shop, car park, or at someone else’s premises, you may be able to claim if there was negligence — for example, poor maintenance, missing warnings, or foreseeable hazards.

Medical negligence claims

If substandard medical care caused avoidable harm (misdiagnosis, delayed treatment, surgical error, medication error), compensation may cover pain, suffering, care needs, loss of earnings, and rehabilitation.

Time limits: don’t let your claim expire

Many compensation claims have strict deadlines. For personal injury claims, a common limit is 3 years from the date of injury or date of knowledge (with exceptions in some circumstances).

Because car finance redress is developing through regulatory action, the smartest move is to start gathering documents and getting advice now, rather than waiting for headlines to settle.

How National Claims helps you take action

1. Tell us what happened (car finance, housing disrepair, injury, negligence, or multiple issues)
2. Share what you have (agreement, photos, medical notes, timeline)
3. We connect you with experienced solicitors who can assess merits and next steps
4. You get clarity fast — including what compensation could look like and what evidence strengthens the case

Frequently Asked Questions

1. When does the FCA pause on motor finance complaints end?

The FCA has said the pause will lift on 31 May 2026.

2. Who might qualify for car finance compensation?

People who used motor finance between 2007 and 2024 and were treated unfairly — particularly where commission arrangements were not properly disclosed — may be eligible under the FCA’s developing approach.

3. How much compensation could I get for mis-sold car finance?

The FCA has estimated around £700 per agreement on average, but your figure depends on the specifics of your agreement and circumstances.

4. Do I need paperwork to start?

It helps, however you can still start with basic details (lender, dealer, year, and what you remember). Meanwhile, gathering your agreement and communications can strengthen the claim.

5. What’s the usual time limit for injury claims?

Many personal injury claims must be issued within 3 years (though there are exceptions).

Check our FREE PCP calculator on how many agreements you have : https://pcp.national-claims.co.uk/vehicle-claim

Take the next step

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.