If you've used car finance, you may be owed compensation. Find out how to complain and what to expect from our scheme.
Latest update: Our scheme has been legally challenged. We will defend it as the best way to resolve such a widespread and complex issue.
The challenge will delay payouts that were due to begin this year. We have removed dates from this page until we can confirm the scheme timeline. We'll update the page when we know more. The best thing you can do, if you have concerns, is to complain to your lender.
If you used finance to buy a car, motorbike or van between 6 April 2007 and 1 November 2024 you may be owed compensation.
Many lenders didn't properly tell customers important information about their agreements. This broke laws and our rules in force at the time. That’s why we've launched a scheme to make sure people are compensated.
Your next steps
Who this applies to
We estimate that 37% of agreements made at the time are eligible for compensation. That’s around 12.1 million agreements.
This may apply to you if:
- You used car finance for a motor vehicle, for example, a car, motorbike, van or campervan between 6 April 2007 and 1 November 2024 (this includes hire purchase agreements, such as Personal Contract Purchases), and
- You weren't told about certain arrangements between the lender and broker (whoever arranged your loan).
These arrangements include:
- A discretionary commission arrangement (DCA), which allowed the broker to adjust the interest rate you paid to get a higher commission.
- A high commission arrangement, where the commission amount was at least 39% of the total cost of credit (the interest and charges for your loan) and 10% of the loan.
- Contractual ties. This is where your broker only used one lender or gave one lender the right of first refusal on your loan. However, contractual ties won’t be included if there were visible links between the lender, manufacturer and franchised dealer. For example, where they shared a common or similar name.
There will be some exceptions. Your agreement will be considered fair, if:
- The commission was £120 or less for agreements beginning before 1 April 2014 and £150 or less from that date. Commission amounts below those levels are unlikely to have influenced the broker’s behaviour or an individual’s decision.
- You weren't charged any interest.
Our scheme won't apply to you if:
- You leased a car with Personal Contract Hire (PCH).
- You’ve had your complaint considered by the Financial Ombudsman Service or determined by court.
- You've already accepted compensation.
- Your agreement was over £25,000 if it was entered into before 6 April 2008 or was for business purposes.
- You had a high value loan (what classes as a high value loan is different each year. Read below to find out more).
In a very small number of cases, you may also be out of time to get compensation. If this applies to you, your lender will explain why.
If you'd like to receive updates on our work involving car finance complaints and what it means for you, sign up for email updates.
How to complain
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1
Get in touch with your provider (either your lender or broker)
Tell your provider why you want to complain about commission on your car finance agreement. Include as much information as you can to help them find your loan. For example, your:
- name
- policy number
- date of the agreement
- vehicle number plate
- address when you took out the agreement
Download our template complaints letter (DOCX)
Finding your provider
If you’re not sure who your provider is:
- Check old bank statements.
- Contact the dealer where you got the car.
- If your agreement was active in the last 6 years, you can also try checking your credit file as your provider may be listed on there. Find out how to access your credit file for free from the Information Commissioner’s Office.
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2
Getting a response from your provider
Once you've made a complaint, your provider should send you an acknowledgement within 8 weeks. If it doesn't, you should follow up to check if it's received your complaint.
Under our current rules, your provider won’t have to send you a final response until after 31 May 2026.
Personal contract hire (PCH) complaints
If you leased a car with PCH, the extension to the time firms had to respond to your complaint ended on 4 December 2025. This is because our proposed compensation scheme won't cover these claims. From 5 December 2025, your provider must send you a final response within 8 weeks.
If you sent your complaint on or after 26 October 2024, the 8-week deadline is reduced by however long your provider had your complaint before the extension was introduced on 19 December 2024. For example, if your provider received your complaint 3 weeks before the extension was introduced, your provider will have 5 weeks from 5 December 2025 to respond.
If you're unhappy with your provider's response
You can complain to the Financial Ombudsman Service. The Financial Ombudsman is a free service that settles complaints between consumers and businesses that provide financial services.
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3
Taking your complaint to the Financial Ombudsman
It’s important you contact the Financial Ombudsman by the date given in your provider's final response letter, or they may not be able to help.
If you're sent (or have been sent) a final response to a complaint during the following periods:
- For a complaint about a DCA, between 12 July 2023 and 20 June 2024.
- For a complaint about any kind of motor finance commission (including DCAs), between 21 June 2024 and 29 January 2026.
You'll have until the later of 29 July 2026 or 15 months from the date the final response letter was sent to take your complaint to the Financial Ombudsman.
For final responses sent after 29 January 2026, you'll have 6 months from the date the final response letter was sent to take your complaint to the Financial Ombudsman.
Using a claims management company (CMC)
You won't need to use a CMC or a law firm to take part in any compensation scheme we set up.
You can complain now for free without using one, and you don’t need to use a CMC to find out if you’re eligible. If you’re unsure who your provider was, there are a few ways you can check.
If you sign up to a CMC now, you may end up paying for a service you don't need, including up to 36% in fees, including VAT, out of any compensation you may receive.
Already signed up with a CMC or law firm?
If you decide you no longer want to use a CMC or law firm, you can end your agreement. But you may be charged a fee. This fee should be reasonable and should reflect the work the firm or CMC has already done. Find out what to expect if you do decide to use a CMC.
Taking your complaint to court
You can also bring a claim about your car finance commission to court. If you’re considering this option, you should think about getting independent legal advice.
