Car finance redress
The FCA Car Finance Redress Scheme Explained
Independent and free. We don't run claims — here's how the FCA scheme is set to work.
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 FCA car finance redress scheme is a process for compensating people whose car finance carried hidden or discretionary commission. It was confirmed in 2025 after the Supreme Court ruling of 1 August 2025, with payouts expected through 2026.
The FCA estimates the scheme could be worth around £8.2bn (with a range up to ~£11bn or more), across roughly 14 million agreements. Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement. Check your position with the compensation estimator.
What is the FCA redress scheme?
The FCA redress scheme is the regulator's plan to put right car finance deals affected by undisclosed commission. It was confirmed in 2025, following the Supreme Court ruling of 1 August 2025.
The FCA — the Financial Conduct Authority — regulates UK lenders. Rather than leaving everyone to sue, a scheme aims to handle affected agreements consistently. It covers deals from the 2007–2024 window.
Do you qualify?
You may qualify if you took car finance between 2007–2024 and your deal carried commission that was not clearly disclosed. The clearest cases involve a discretionary commission arrangement (DCA).
Qualifying isn't automatic. Work through the honest checklist on am I eligible, or read about DCAs.
- Your agreement started in the 2007–2024 window.
- It was arranged through a dealer or broker who was paid commission.
- The commission, or how your rate was set, was not clearly explained.
How much could it pay?
The scheme is built around returning overpaid interest, plus interest on top — not a flat figure. The FCA has put the overall scale at around £8.2bn (with a range up to ~£11bn or more).
Spread across roughly 14 million agreements, individual amounts will vary a lot by deal size, rate and term. Any figure you see is an estimate, not a promise — nobody is guaranteed a payout, and the amount depends on your own agreement.
Why there's no single average
Key dates
The dates that matter are the ban, the ruling, the scheme confirmation and the expected payouts. Treat the payout window as provisional until the FCA confirms it.
| Event | Date |
|---|---|
| DCAs banned by the FCA | 28 January 2021 |
| Supreme Court ruling | 1 August 2025 |
| FCA redress scheme | confirmed in 2025 |
| Payouts expected | 2026 |
Estimate and how to claim
You don't have to wait to act — and you don't need a claims firm. Estimate first, then complain for free.
Use the compensation estimator, then follow how to claim. Claiming is free and you can do it yourself: complain to your lender first, then escalate to the Financial Ombudsman Service. You do not need a claims-management company taking a cut.
Frequently asked
What is the FCA car finance redress scheme?
Do I qualify for the scheme?
How much could the scheme pay out?
What are the key dates?
Work out your next step
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