> 📅 MOVING STORY — VERIFY BEFORE ACTING. > The Upper Tribunal suspended parts of the scheme on 2 July 2026. Timings and details have shifted repeatedly. Check the FCA's current published position before relying on anything here. > > 💷 Not financial or legal advice. This explains the process. For your specific circumstances, the FCA, the Financial Ombudsman and free consumer advice services are the authoritative sources.
The short version
If you bought a car on finance in Britain between 6 April 2007 and 1 November 2024, there is a meaningful chance you're owed money.
The FCA's scheme covers an estimated 12.1 million agreements, with around £7.5 billion in compensation and an average of roughly £700 per agreement.
⭐ And the single most important thing to know: you do not need a claims management company. Firms are required to contact eligible customers, and you can complain directly to your lender for free.
Step 1 — Check whether you're in scope
The period: agreements from 6 April 2007 to 1 November 2024.
The products: motor finance agreements — PCP, hire purchase and similar. As our PCP explainer described, these are the arrangements that fund most car purchases in Britain.
Generally not in scope: a personal loan you used to buy a car, where the dealer wasn't arranging the finance.
If you're unsure, check anyway. It costs nothing.
Step 2 — Understand what actually went wrong
This matters, because it tells you what to ask about.
The dealer arranging your finance was paid commission by the lender. Many buyers didn't know that.
More seriously, under a discretionary commission arrangement (DCA), the broker could increase their own commission by raising the interest rate you were charged. They were directly rewarded for making your loan more expensive, and didn't tell you.
DCAs were banned in January 2021.
Step 3 — Know the legal basis
Most coverage gets this wrong, and the nuance matters.
In August 2025, the Supreme Court ruled in three joined cases — Hopcraft v Close Brothers, Johnson v FirstRand and Wrench v FirstRand ([2025] UKSC 33).
The Court found predominantly IN FAVOUR OF THE LENDERS, rejecting most grounds on which consumers had claimed.
But in the Johnson case it found for the consumer: an abnormally high commission combined with non-disclosure of the commercial tie created an unfair relationship under section 140A of the Consumer Credit Act 1974.
That narrow finding is the entire basis of the scheme — which is also why it's being legally challenged.
Step 4 — Understand the two remedies
The Johnson / Commission Repayment remedy. For cases closely matching Johnson — very high commission (at least 50% of the total cost of credit and 22.5% of the loan) combined with an undisclosed tie and/or a DCA.
Approximately 90,000 consumers qualify, receiving all commission paid plus interest.
The hybrid remedy. For all other eligible cases — the average of estimated loss and commission paid, plus interest.
For pre-2014 agreements, where data is limited, a 21% APR adjustment applies, estimated to increase average redress by around £31.
Step 5 — Wait to be contacted, or ask
Firms are required to contact eligible customers. For most people, the correct action is to wait, then respond when contacted.
If you haven't been contacted and believe you're eligible, you can ask your lender to review your case. The FCA has indicated a window for consumers to request review — verify the current deadline, as timings have shifted.
What you'll need: the lender's name, approximate dates, and any agreement paperwork you still have. Keep whatever you have — it helps.
Step 6 — If you're unhappy with the outcome
Two routes remain open:
The Financial Ombudsman Service can review whether the scheme's rules were correctly applied. This is free.
You retain the right to make a claim in court, independently of the scheme.
⭐ Why you don't need a claims management company
This deserves emphasis, because the sector is advertising heavily.
A CMC will typically take a substantial percentage of any award for work you can do yourself.
Firms must contact eligible customers. Complaining directly is free. The Financial Ombudsman is free. Free consumer advice services exist.
If a CMC contacts you claiming you must act through them, that is not true.
And be alert to fraud. High-profile redress schemes attract scams. The FCA will not ask you to pay a fee to receive compensation, and unsolicited contact demanding personal or banking details deserves suspicion.
Where the scheme stands now
Confirmed 30 March 2026 in FCA Policy Statement PS26/3.
Legally challenged from 1 May 2026, with the FCA stating it would defend the scheme as lawful.
⚠️ On 2 July 2026, the Upper Tribunal suspended parts of the scheme, on terms agreed with four challengers.
Crucially: the scheme has not been struck down. Firms must still comply with rules that are not suspended, and the FCA has set out contingency planning.
What this means practically: timings are less certain than they were. Check the FCA's current published position rather than relying on earlier reported timelines — including ours.
The bottom line
If you had car finance between April 2007 and November 2024, check. Around 12.1 million agreements are in scope, averaging roughly £700.
Firms must contact you. Complaining directly is free. The Ombudsman is free. You do not need a claims management company, and one taking a percentage of your award is taking money for work you could do yourself.
Parts of the scheme are currently suspended, so timings are uncertain — verify the FCA's current position before acting.
And for any finance you take in future: ask what commission is being paid and how your rate was determined. You're entitled to understand it, and this entire episode exists because too few people asked.
- 📅 Moving story — parts of the scheme were suspended by the Upper Tribunal on 2 July 2026. Verify the FCA's current position before acting
- Scope: agreements from 6 April 2007 to 1 November 2024 — around 12.1 million, averaging roughly £700 in redress
- The problem was undisclosed commission, especially DCAs where a broker could raise their own pay by raising your interest rate (banned January 2021)
- ⭐ You do not need a claims management company — firms must contact you, complaining directly is free, and the Ombudsman is free
- The FCA will never ask you to pay a fee to receive compensation — treat unsolicited demands for payment or bank details as suspicious
Key takeaways
- 📅 Moving story — parts of the scheme were suspended by the Upper Tribunal on 2 July 2026. Verify the FCA's current position before acting
- Scope: agreements from 6 April 2007 to 1 November 2024 — around 12.1 million, averaging roughly £700 in redress
- The problem was undisclosed commission, especially DCAs where a broker could raise their own pay by raising your interest rate (banned January 2021)
- ⭐ You do not need a claims management company — firms must contact you, complaining directly is free, and the Ombudsman is free
- The FCA will never ask you to pay a fee to receive compensation — treat unsolicited demands for payment or bank details as suspicious
Sources & further reading
- FCA Policy Statement PS26/3 and subsequent statements
- [2025] UKSC 33
- True Motion Auto motor-finance investigation (Batch 23). *Moving story — verify current position. Not financial or legal advice. Verified July 2026.*
Figures, prices and policy details were current at the last-updated date above. Automotive pricing, incentives and regulations change frequently — verify time-sensitive details with the linked primary sources. Read our editorial policy and fact-checking standards.
