The FCA has confirmed a motor finance commission redress scheme (PS26/3, 30 March 2026) that consumers can access directly for free. You can complain to your lender now for free – and those who complain will be compensated sooner under the scheme. If you are not satisfied with your lender's response, you can refer your complaint to the Financial Ombudsman Service for free. If a firm has failed and you're eligible, you can claim via the FSCS for free. We are a Claims Management Company (CMC). It's important to understand you don't need to use a CMC – it's optional. We charge on claim success only (fees range from 18% to 36% inc. VAT of compensation). See "our fees" for details.

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Car Finance Redress | Genuine No Win, No Fee*

FCA Update – March 2026: Redress Scheme Confirmed

The FCA published final rules for its motor finance redress scheme on 30 March 2026 (PS26/3). The scheme covers an estimated 12.1 million regulated motor finance agreements taken out between 6 April 2007 and 1 November 2024, with average compensation of around £830 per eligible agreement. You can find out more about the scheme by reading our blog here. Alternatively, you can read the full FCA policy statement directly on their website.

If you had a PCP, hire purchase, or conditional sale agreement and were not properly told about the commission your dealer received, you may be eligible for compensation under the scheme. Complaining now means you are on the fastest track – your lender must tell you within 3 months of the implementation period ending whether you are owed money.

We are a claims management company specialising in car finance claims with proven success in unaffordable lending cases. You do not need to use a claims management company to access the scheme – it is free to use directly. However, if your case is complex or you would prefer support, we can help. *We only charge a fee if you receive a compensation payment. Our fees range from 18% to 36% (including VAT). If your claim is unsuccessful, there is no charge.

Note: The scheme covers regulated credit agreements only. Consumer hire and leasing agreements (where you rent a vehicle and return it with no option to buy) are not covered by the scheme.

Key Facts:

  • Around 61% of motor finance agreements between April 2007 and January 2021 involved a discretionary commission arrangement (DCA).¹
  • The FCA estimates that around 14 million motor finance agreements taken out between 6 April 2007 and 1 November 2024 could be covered by its proposed compensation scheme for unfair motor loans.²
  • The FCA expects the total cost of any motor finance compensation scheme to be at least around £9 billion, with some external estimates suggesting it could be as high as £18 billion.³

FREE ALTERNATIVE: You don’t need to use a claims company — you can complain to your lender and then the Financial Ombudsman Service for free.

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The Car Finance Compensation Scheme: Understanding Your Rights to Redress

The car finance industry faces major reform following FCA investigations³ and the Supreme Court’s Johnson ruling⁴ which found that undisclosed commissions can create unfair relationships under s140A of the Consumer Credit Act, particularly when combined with other factors.

The FCA estimates potential redress between £9bn – £18bn³, leading to plans for an industry-wide compensation scheme to ensure fair outcomes for affected consumers.

Any redress depends on your individual circumstances and a proper investigation.

Apply Now You can also complain directly to your lender for free

Types of Car Finance Claims: Understanding Your Rights

Your car finance claim may be based on two main types of commission arrangements:

Discretionary Commission Arrangements (DCA) Claims

Banned by the FCA on 28 January 2021⁵

Under DCAs, car dealers could adjust your interest rate to increase their commission payments. The higher your rate, the more they earned, resulting in customers paying excessive charges unfairly.

The FCA estimates around 61% of car finance deals between April 2007 and January 2021 had such arrangements before they were banned.¹ If your agreement was before January 28, 2021, you may have grounds for a DCA-related claim.

Non-Discretionary Commission Claims

Even fixed commissions or flat fees can create unfair relationships when:

  • The commission was substantial compared to the total charge for credit (in Johnson, it was ~55%)⁴
  • Dealer-lender commercial ties weren’t disclosed
  • The nature and amount of commission wasn’t clearly disclosed
  • Your circumstances made the arrangement unfair

The Supreme Court’s Johnson ruling (1 August 2025)⁴ established that multiple factors, including undisclosed commissions, can create unfair relationships requiring redress.

Finance Lenders You May Be Able to Make a Claim Against

Who Can Make Car Finance Claims for Redress?

You may be entitled to redress if:

  • Your agreement was after April 2007
  • You used PCP, HP or personal loan finance
  • Your finance included large commissions which were not explained to you
  • Your lender did not clearly explain key costs, commissions or commercial relationships to you
  • You were misled or not properly informed about your options
  • Key information was hidden in small print

Important: You can claim for multiple vehicles. Each agreement is assessed separately. Claims are possible even if the finance is paid off, still active, or was voluntarily terminated.

Apply Now Free alternative also available via Financial Ombudsman Service

How Much Car Finance Redress Could You Receive?

Realistic Expectations:

  • Compensation depends on your individual circumstances and proper investigation
  • If you had multiple agreements, each is assessed separately

The FCA is consulting on a potential redress scheme but encourages consumers to complain now if they are concerned about commissions on their car finance.

Start Your Car Finance Claim Today — No Win, No Fee

How We Help:

  • ✓ Free initial assessment
  • ✓ We handle all paperwork
  • ✓ Deal with lenders on your behalf
  • ✓ No upfront fees
  • ✓ Only pay if your claim is successful

Our Process:

  1. Free eligibility check – Takes just 2 minutes
  2. Document review – We identify any failings
  3. Submit complaint – We handle everything
  4. Secure your redress – You only pay if successful
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Remember: You can complain directly to your lender and then the Financial Ombudsman Service for free. Our success fee is 18-36% inc. VAT if we secure compensation for you.

Disclaimer

This page provides general information only. The outcome of any claim depends on individual circumstances and proper investigation.

Allegiant Finance Services Ltd (FCA Ref: 836810) is authorised and regulated by the Financial Conduct Authority. Always seek personalised legal or financial advice before making decisions.

Sources

¹ FCA Motor Finance Consultation Analyst Briefing (October 2025): https://www.fca.org.uk/publication/corporate/motor-finance-consultation-analyst-briefing.pdf

² FCA Press Release: “14m unfair motor loans due compensation under FCA-proposed scheme” (7 October 2025): https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme

³ FCA Statement: “FCA to consult on a compensation scheme for motor finance customers” (3 August 2025): https://www.fca.org.uk/news/statements/fca-consult-compensation-scheme-motor-finance-customers

⁴ Supreme Court: Johnson v FirstRand Bank Limited [2025] UKSC 33 (1 August 2025): https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_press_summary_3ebf0c54ba.pdf

⁵ FCA PS20/8 – Motor finance discretionary commission models and consumer credit commission disclosure (July 2020, implemented 28 January 2021): https://www.fca.org.uk/publication/policy/ps20-8.pdf

Start Your Commission Claim

Stephen Griffiths, Head of Product

Stephen is our Head of Product, with a steadfast dedication to consumer justice and thought leadership . In his early years, Stephen was a Complaints Handler at Lloyds Banking Group. Stephen then worked at the Financial Ombudsman Service for over 10 years in various roles, including Quality Auditor. Stephen ensures Allegiant provides top tier claims handling for our customers.

Allegiant Car write-off

DCA Claims (Discretionary Commission Arrangements)

Learn more about Discretionary Commission Arrangement Claims here

DCA Claims
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NDA Claims (Non Discretionary Commission Arrangements)

Learn more about Non Discrestionary Commission Arrangements here

NDA Claims

Frequently Asked Questions

Are car finance claims real? / Are these car finance claims legit?

Absolutely. In fact, they’re grounded in solid legal precedent. In August 2025, the Supreme Court found a particular commission arrangement to be unlawful under a section (s.140A) of the Consumer Credit Act, creating an “unfair relationship between the customer and the lender. There can be various factors which contribute to a commission arrangement being unfair under the Consumer Credit Act, for instance: the size of the commission, the nature of the commission, the characteristics of the customer, the extent and manner of the disclosure, and compliance with the regulatory rules. Customers with claims that share similar facts to the case the Supreme Court upheld, ought to be due compensation too.

Car finance commission claims are now handled under the FCA’s confirmed motor finance redress scheme (PS26/3, published 30 March 2026). You can access the scheme directly for free, or you can use a claims management company (CMC) or regulated law firm to manage the process on your behalf.

The scheme covers regulated motor finance agreements – PCP, hire purchase, and conditional sale – taken out between 6 April 2007 and 1 November 2024 where commission was not properly disclosed. There are two tracks depending on whether you have already complained:

If you have already complained to your lender, you are automatically included. Your lender must tell you within 3 months of the implementation period ending whether you are owed compensation and how much. You do not need to do anything further.

If you have not yet complained, your lender will contact you if you are likely to be owed money. However, complaining now moves you onto the faster track. You can complain directly to your lender – a template complaint letter is available on the FCA’s website – or you can instruct a CMC like Allegiant to handle it for you.

Once your lender issues a decision, you can accept the offer or challenge it. If you are not satisfied with the outcome, you can escalate to the Financial Ombudsman Service (FOS) for free.

The FCA’s confirmed redress scheme sets clear deadlines for lenders:

For agreements from April 2014 onwards, the implementation period ends 30 June 2026. Lenders must then inform complainants within 3 months (by 30 September 2026) whether they are owed money. If you accept, payment follows within a month – meaning compensation could reach you by November 2026.

For agreements from April 2007 to March 2014, the implementation period ends 31 August 2026. Complainants should receive a decision by 30 November 2026, with payment by January 2027.

For consumers who have not yet complained and are contacted by their lender, the timeline is longer. Lenders have 6 months after the implementation period to invite eligible customers to opt in, and consumers then have a further 6 months to respond. This means the full process for non-complainants could extend into late 2027.

The FCA’s stated objective is for millions of claims to be settled in 2026, with the vast majority resolved by the end of 2027. Anyone not contacted by their lender can still complain directly by 31 August 2027.

“Best” depends on three non-negotiable criteria—regulation, fees and track record—whether you pick a CMC or a law firm:

Regulatory Oversight (FCA or SRA):

It is essential to ensure your professional representative is authorised to represent you under a relevant regulator.

Claims Management Companies (CMCs) are regulated by the FCA under the Financial Services and Markets Act.

Law Firms handling these claims are regulated by the Solicitors Regulation Authority (SRA).

Fee Structure & Transparency:

No Win, No Fee: Both top CMCs and law firms typically operate on a no win–no fee basis, but the percentage they charge can vary (often 25–35 percent of your redress). Always request their full fee schedule in writing. Look out for hidden extra costs (e.g., VAT, “file handling” fees, or unscheduled disbursements). Here at Allegiant, our prices are clearly stated to include VAT. We have no hidden charges.

Lawyers vs CMC Fees: In some cases, SRA-regulated firms charge slightly higher percentages than CMCs.

Demonstrable Success & Client Feedback

Track Record: The best providers (CMCs or law firms) publish anonymised case studies or statistics demonstrating their experience. Allegiant has claimed over £80 million across all claim types.

Independent Reviews: Check Trustpilot, Which? or MoneySavingExpert forums. Beware of five-star packed reviews—look instead for detailed, balanced feedback. High-volume CMCs sometimes trade on aggressive marketing; top law firms usually have steadier, quality-based reputations. Allegiant has an great Trustpilot rating Our reviews are not manipulated. Be aware of providers that ask customers to write a 5* review based on a “great” phone call only(!). Look for results based reviews.

See the Latest Car Finance News from our Insights blog

Two Types of Commission Explained

In this blog, our Head of Product, Stephen Griffiths, explores the main two branches of commissions associated with car finance.

View now

Mis-sold Car Finance: What You Need to Know

We take a look at the essentials all UK drivers should know about vehicle hidden commission claims.

Learn now

The Story of Ms Lewis, Arnold Clark, Barclays Partner Finance, and Hidden Commission

Learn about the humble beginnings of the UK’s largest financial scandal since PPI.

Go now

Our Car Finance Claims Process

  • investigation 1

    Step 1

    We'll locate and review your car finance agreements

  • paperwork icon

    Step 2

    We'll spot any lender failings, and hold them to account

  • negotiation 1 icon

    Step 3

    We'll review the lenders offer, or escalate as necessary

  • cash back icon

    Step 4

    Where eligible, we will ensure you are re-united with your cash

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Claiming for Free Yourself

The FCA has confirmed a motor finance commission redress scheme (PS26/3, 30 March 2026) that consumers can access directly for free. You can complain to your lender now for free – and those who complain will be compensated sooner under the scheme. If you are not satisfied with your lender's response, you can refer your complaint to the Financial Ombudsman Service for free. If a firm has failed and you're eligible, you can claim via the FSCS for free. We are a Claims Management Company (CMC). It's important to understand you don't need to use a CMC – it's optional. We charge on claim success only (fees range from 18% to 36% inc. VAT of compensation). See "our fees" for details.