Why the FCA is acting now
On the 7th October 2025, off the back of the Supreme Court Ruling, the Financial Conduct Authority (FCA) published its car finance redress scheme consultation paper, bringing positive news to motorists and their representatives. The regulator claims the mis-selling scandal will cost banks £11 billion overall, though it could rise to £12.4 billion if all victims applied and secured payouts as part of the scheme.
For years, dealers and brokers earned commission on car loans. Sometimes, higher interest meant higher commission. Many drivers were not told. As a result, they may have overpaid. Latest estimates suggest over 14 million agreements may have been mis-sold and around five million customers could be due compensation.
The FCA car finance redress scheme offers a clear remedy. It sets rules for how firms review cases and pay redress. It also sets deadlines, so drivers are not left waiting.
Who might qualify for compensation
Mis-selling happens when individuals do not receive essential information necessary for making informed decisions. You could be in scope if you financed a car between 2007 and 2024. That includes PCP and HP agreements. A dealer or broker arranged the deal. A lender funded it. If a commission existed and disclosure fell short, you may be eligible to claim.
Ask yourself:
- Was your agreement taken out from 2007 to 2024?
- Did a dealer or broker arrange the finance?
- Did the lender pay commission that was not made clear?
If you answered “yes” to each, you may have a car finance claim.
How much could drivers receive?
Payouts vary by case. They reflect the extra interest caused by undisclosed commission. Media estimates suggest average refunds near £700. Some cases will be lower. Others will be higher. Either way, the core aim is fairness and speed.
One of the most exposed lenders, Lloyds Banking Group, has set aside a further £800 million for potential compensation. Its total provision is now close to £2 billion. Meanwhile, BMW executives have sought talks with the Chancellor, Rachel Reeves, about the consumer compensation scheme. This underlines the scale of the mis-selling which is one of the biggest financial scandals since payment protection insurance (PPI).
What to do before the scheme goes live
If you believe you were mis-sold car finance, you have options to claim. One simple route is via our survey. It is simple, risk free, and you are under no obligation to proceed. As a CMC, we save you time and stress. We handle the process end to end. You stay in control, while we do the heavy lifting.
Benefits include:
- Expert guidance: We know lender processes and FCA updates.
- Stronger evidence: We draft clear letters and request key data.
- Faster progress: We chase deadlines and keep your case moving.
- Firm negotiation: We deal with lenders, so you do not have to.
- Escalation ready: We prepare files for the Ombudsman if needed.
- Clear updates: You get plain-English reports at every step.
We keep you updated as the FCA redress scheme progresses. Therefore, you protect your position before deadlines and backlogs build.
Start your claim. Take our short survey to see if you qualify for compensation.
FCA redress scheme: common questions
Does the FCA car finance scheme cover PCP and HP? Yes. It covers regulated car finance, including PCP and HP. The focus is on commission and disclosure.
Do I need a solicitor or law firm? No. The proposed model is lender-led. However, expert help still adds value. We gather evidence, track deadlines, and manage updates.
What if I already complained? We can review your case status. We will confirm next steps under the new rules. You will not lose your place by speaking with us.
What if my lender went out of business? There may still be routes to redress. The details depend on the firm and dates. We will check options and explain them in plain English.
How long will it take? Timelines depend on the FCA’s final rules. The goal is quicker outcomes than one-by-one disputes. Preparation now reduces delays later.
Key benefits of a single redress scheme
A single scheme means consistent answers. It reduces backlogs and mixed results. It also gives drivers a clear path to refunds. Lenders gain certainty, too. As a result, the process should run faster and more fairly.
Moreover, a scheme limits stress for consumers. You will know what information is needed and when. You will also see defined timeframes. That clarity makes a real difference.
Why choose Car Claim Specialists
We focus on car finance claims every day, tracking FCA announcements and lender updates. We also monitor court decisions and press coverage. That means you get accurate guidance, fast.
Our process is simple:
- You complete our short car finance claim check.
- We confirm your likely eligibility.
- We gather key documents and evidence.
- We guide you through each step and timeline.
- We keep you updated until your case resolves.
You will always know what we are doing and why. We use plain English and clear actions. No jargon. No hidden steps.
Our view on what comes next
We welcome the FCA redress scheme. It brings structure and speed to a complex issue. Final details will settle soon. Lenders may still push back on parts of the model. Even so, the direction is clear. Drivers deserve fair refunds when commission inflated costs.
Therefore, preparation matters. Early action avoids queues and delays. It also protects your rights if rules tighten. So, start your claim today and stay ahead.
This scheme is not only about fixing the past. It also sets a new benchmark for motor finance. For lenders and brokers, this is a chance to rebuild trust. They can strengthen relationships and show what good looks like in a changing market.
Start Your Car Finance Claim Today
Think you were mis-sold car finance between 2007 and 2024? You may qualify under the FCA redress scheme. Car Claim Specialists are experts in uncovering unfair car finance deals. We help drivers across the UK claim what they’re rightfully owed. There are no upfront fees, and we only charge if your claim is successful.
- No paperwork needed
- Free eligibility check
- Fast and simple process
- No win, no fee
Join thousands of customers already starting their claim today!
