Think you’re owed money from the car finance scandal? Here’s what to do

Taken out car finance? You could be owed up to £950 per agreement. Find out how to check and what to do next.

If you took out car finance between 2007 and 2021, there’s a good chance you could get some money back – and it’s worth knowing how to go about it.

When you got your loan, the lender probably paid a commission to the broker (usually your dealer) who helped arrange it. The problem is, a lot of companies didn’t properly tell people about these commission fees, which goes against the rules that are there to protect you.

A Supreme Court ruling in August 2025 said that while commission payments can be legal, failing to be upfront about them can sometimes be unfair – and even unlawful – in certain situations.

Following the court ruling, the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme, which could cost the industry between £9bn and £18bn. While it’s hard to pin down the exact figure, early estimates suggest millions of people could be in line for a payout.

Want to find out if you’re eligible? This guide will show you how to check if you have a valid complaint, how to make a claim, and what to expect along the way. Plus, we share tips on how to avoid scams when the scheme comes into play.

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So, what’s happening?

The FCA’s compensation scheme is being designed to help people who’ve lost out due to hidden or undisclosed commission fees. The best part? It should be simpler than going through the complaints process, and you won’t need to pay a claims management company or lawyer to get your money back.

The scheme will mostly focus on something called discretionary commission arrangements (DCAs). These are situations where the broker could adjust your interest rate without telling you, potentially costing you more. They’re also considering covering other types of commissions too.

How much could you get back?

Based on what the FCA has seen so far, most people would probably get less than £950 per agreement, including some interest (around 3% per year). That might not seem like a huge amount, but if you have multiple agreements or loans, it can add up.

What happens next?

The FCA will publish more details about the scheme in October 2025, including how you’ll be able to join (you might have to opt in, or you might be automatically included unless you opt out).

If everything goes to plan, the first payments could roll out as early as 2026. And firms will have to let you know if you might be eligible.

What can you do now?

If you’re worried you weren’t told about commission on your car finance, it’s worth making a complaint to your provider (that could be your lender or your dealer). You don’t need to use a claims management company – complaining directly is free and often the fastest way.

When you complain, try to include details such as your name, policy number, agreement date, vehicle number plate, and where you lived when you took out the agreement. Don’t worry if you’re not sure who your provider was: check your old bank statements, contact your dealer, or look at your credit file for clues.

Once you’ve sent your complaint, your provider should acknowledge it within 8 weeks. However, they don’t have to give a full response until after December 2025 (this might change). If you’re unhappy with their response, or don’t hear back, you can take your case to the Financial Ombudsman Service, which is free and independent.

Already complained or received a response?

If you’ve already complained about a discretionary commission arrangement but weren’t happy with the response, you can take it to the Ombudsman.

If your provider said there was no DCA but you now suspect there might be other types of commission involved, you can file a new complaint.

There’s also the option to take your case to court, but we’d advise that you get independent legal advice before doing so.

Beware of claims management companies (CMCs)

You don’t need a CMC or lawyer to get compensation. Many companies charge hefty fees, sometimes up to 30% of what you get back. If you’ve already signed up with one, you can cancel, but check if there’s a reasonable cancellation fee for any work they’ve done.

5 tips to avoid scams

While this could help many people get compensation, scammers often target such schemes to trick people into giving away personal information or money. Here’s how to stay safe when the scheme comes around.

1. Verify official communications

The FCA or your finance provider will never ask for payments upfront or sensitive details such as full bank passwords via email or phone. Always check the sender’s email address and contact the FCA directly through their official website.

2. Beware of unexpected calls or emails

Don’t trust unsolicited calls or messages claiming to be from the FCA or a claims company. Scammers often use pressure tactics to rush you into sharing information or paying fees.

3. Use official channels

Only submit claims through the FCA’s official website or approved redress platforms. Avoid third-party firms unless you’re 100% sure they’re legitimate.

4. Don’t pay to claim compensation

Genuine compensation schemes don’t charge you fees to apply or receive money. Be suspicious if anyone asks for payment upfront.

5. Keep personal information secure

Never share sensitive information such as your bank details, National Insurance number, or passwords unless you’re certain of who you’re dealing with.

In a nutshell

If you’ve used car finance, it’s worth checking whether you could be owed compensation. Start by making a complaint directly to your provider – you can do it yourself, for free. Keep an eye out for the FCA’s compensation scheme next year, which could make the process even easier.

Got questions or want to know more? The FCA and the Financial Ombudsman Service have plenty of resources to help you along the way.

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