Car finance redress
The Car Finance Scandal & Compensation, Explained
Free and independent. We sell no finance, take no commission and are not a claims firm — just the facts on the scandal, in plain English.
Redress estimate
Any figures here are an estimate, not a promise, and nothing on this page is financial or legal advice. You can claim free yourself — you don't need a claims firm.
The car finance scandal is about hidden commission that pushed up the interest on millions of UK car finance deals taken out between 2007–2024. After the Supreme Court ruled on 1 August 2025, the FCA confirmed a redress scheme, with payouts expected through 2026.
If your agreement was affected, you may be owed money back. Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement. You can check your position with our compensation estimator, and claim free yourself — no claims firm needed.
What happened?
Car dealers and brokers were often paid more commission for arranging a higher interest rate on your finance — without telling you. These were called discretionary commission arrangements (DCAs), and the FCA banned them on 28 January 2021.
Because the broker's pay went up with your rate, some people paid more interest than they needed to. On 1 August 2025, the Supreme Court considered whether hidden commission made the relationship unfair under the unfair-relationship test (s140A, Consumer Credit Act 1974).
Read the mechanics in what is a DCA, or the ruling in full on the Supreme Court page.
The timeline at a glance
Who's affected?
You may be affected if you took out car finance between 2007–2024 and your interest rate was set in a way that earned the broker more commission. That covers a large share of PCP and HP deals from that period.
The FCA estimates the scheme could cover roughly 14 million agreements. Not every deal qualifies — check the honest checklist on am I eligible.
- Your agreement started between 2007 and 2024.
- You financed a car through a dealer or broker (not a direct bank loan you arranged yourself).
- The commission and how it was set was not clearly explained to you.
How to claim (free)
You can claim for free, yourself, in two steps. First complain to your lender; if you're unhappy with the answer, escalate to the Financial Ombudsman Service. You do not need a claims-management company taking a cut.
A claims-management company can take a big slice — often around a third — of anything you get back. Doing it yourself keeps 100%. Follow the steps on how to claim, and use our free letter template to write to your lender.
You keep 100% if you do it yourself
When will you be paid?
Payouts are expected through 2026, once the FCA finalises how the scheme runs. No firm date applies to every lender yet, so treat any timeline as provisional.
You don't need to rush a claims firm to "beat a deadline". See the latest on when claims will be paid, and check whether a claim deadline applies to you.
Claims by finance type and lender
Whatever your deal, the same scheme rules apply. Start with the page that matches your finance type or lender.
- By type: PCP claims and HP claims.
- By lender: Black Horse, MotoNovo, Santander Consumer, Ford Credit, Close Brothers, Moneybarn and more.
- Special cases: you've sold the car, or your lender has gone bust.
Estimate what you could be owed — and why trust us
Before you claim, get a rough idea of your position with our free estimator — it works from the basics of your deal, with no claims firm, no fee and no commitment.
Use the compensation estimator for a plain-English figure. Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement.
We're independent: not a lender, a broker or a claims-management company. We sell no finance and earn no commission on any claim. Our explainers are based on FCA statements and the Supreme Court ruling, so our only job is to give you facts you can act on yourself — for free.
Frequently asked
What is the car finance scandal?
Who is affected?
How do I claim car finance compensation?
How much could I get?
When will payouts happen?
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