Car finance commission: how to complain now while the redress scheme is on hold
The FCA scheme covers agreements from 2007 to 2024 but a legal challenge means payouts unlikely before 2027. Complain free now
The FCA's motor finance redress scheme could return around £7.5bn to people who were overcharged through hidden commission on car finance. A legal challenge has paused parts of it, and payouts are unlikely before 2027. This guide explains who is covered, where the timeline stands, and why complaining to your lender yourself now, for free, is the sensible move.
Who is covered
The scheme applies to hire purchase and personal contract purchase agreements, and some other motor finance, taken out between 6 April 2007 and 1 November 2024. The core problem was arrangements where the dealer or broker received a commission from the lender that was not properly disclosed, including discretionary commission arrangements that let the dealer set your interest rate higher to earn more. If you had car finance in that period, you are potentially in scope even if the agreement has ended or the car has gone.
Where the timeline stands
The FCA published its final scheme rules in March 2026. A legal challenge has partially suspended it, and the Upper Tribunal is due to hear the case in December 2026 or February 2027, with a ruling expected some months after that. Until then lenders are not required to calculate or pay redress. They are required to log any complaint they receive, so nothing you send is wasted.
Realistically, payouts before 2027 are unlikely. The amount per agreement, if any, will depend on the commission model, the loan size and the interest rate.
How to complain to the lender for free
- Find the lender. It is the finance company on your agreement, not the dealer. If you no longer have paperwork, check old bank statements for the direct debit name, or ask the dealer which lender they used.
- Write to the lender's complaints team by email, letter or online form. State that you are complaining about undisclosed commission on your motor finance agreement, give the agreement number if you have it, the vehicle registration and the approximate dates.
- Ask them to confirm whether a commission was paid to the dealer or broker, what type it was, and how much.
- Keep a copy of everything and note the date sent.
Because the scheme is paused, the lender may write back saying it will hold your complaint until the rules are finalised. That is expected. The complaint is logged and you are in the queue.
If you have already had a final response you disagree with, you can take it to the Financial Ombudsman Service, which is free. The FCA has extended the usual time limits while the scheme is in progress, so check the FCA's current guidance at fca.org.uk for the deadline that applies to you.
Why to avoid claims firms
Claims management companies and some law firms are advertising heavily for car finance cases. They typically take a percentage of any payout, sometimes a large one, for doing exactly what you can do yourself with one email. The redress scheme is designed so that lenders identify affected customers and calculate the amount. Signing with a claims firm does not move you up any queue and does not increase the amount. It only reduces what you receive.
If you have already signed with a firm, check the contract for a cancellation period and any cancellation fee.
What to do next
- Complain to each lender you had car finance with in the period. One complaint per agreement.
- Keep an eye on the FCA's motor finance page for the tribunal outcome.
- Do not pay anyone upfront to make a claim for you.
- Be wary of cold calls or texts claiming you are owed a specific sum. The FCA and lenders do not contact people that way.