Car Finance Commission Claim Step by Step Process

If you used car finance in the UK and believe commission arrangements were not properly disclosed, you may be able to make a complaint and potentially receive compensation. The Financial Conduct Authority has established a motor finance redress scheme covering certain agreements, although parts of the scheme are currently subject to a legal challenge.

The car finance commission claim step by step process starts with checking whether your finance agreement may be covered, identifying the lender, submitting a complaint directly to the lender and then considering your options after receiving its response.

This guide explains the process using the latest information available from the FCA and Financial Ombudsman Service as of August 2026. It is general information, not personal legal or financial advice.

What Is a Car Finance Commission Claim?

A car finance commission claim is generally a complaint about commission paid by a finance lender to a broker, often a car dealer, when arranging vehicle finance.

One important arrangement was a discretionary commission arrangement, or DCA. Under a DCA, the broker could have some ability to adjust the interest rate offered to the customer, with the commission potentially increasing when the interest rate increased. The FCA banned DCAs in January 2021.

The current FCA redress scheme is broader than DCAs alone. Depending on the circumstances, it can cover certain discretionary commission arrangements, high commission arrangements and some contractual ties where customers were not properly informed about the arrangement.

Importantly, having had car finance does not automatically mean you are entitled to compensation. Eligibility depends on the agreement, commission arrangement, disclosure and other scheme conditions.

Who May Be Eligible?

The FCA says its scheme may apply to people who used finance for a car, motorbike, van or campervan between 6 April 2007 and 1 November 2024 and were not properly told about certain arrangements between the lender and broker. Hire purchase agreements, including Personal Contract Purchase agreements, can be covered.

Potentially relevant arrangements include:

• Discretionary commission arrangements
• Certain high commission arrangements
• Certain contractual ties between brokers and lenders

The scheme also contains exclusions and exceptions. For example, Personal Contract Hire is not included, and some agreements involving high value loans, business purposes or previously resolved complaints may fall outside the scheme.

The FCA estimates that around 37% of agreements from the relevant period may be eligible for compensation, representing approximately 12.1 million agreements. This is an estimate of potentially eligible agreements, not a guarantee that an individual customer will receive money.

Car Finance Commission Claim Step by Step Process

Step 1: Check Your Finance Agreement

Start by identifying when you took out the vehicle finance and what type of finance you used.

Useful information includes:

• The date the finance agreement started
• The lender’s name
• The dealership or broker
• The vehicle involved
• Your agreement number
• The type of finance, such as hire purchase or PCP
• Any paperwork relating to the finance
• Bank statements showing finance payments

The FCA currently states that the relevant scheme covers certain motor finance agreements entered into between 6 April 2007 and 1 November 2024. However, the dates alone do not establish eligibility. Other scheme rules and exclusions also apply.

Step 2: Find Your Lender

If you cannot remember the lender, check your old finance documents and bank statements.

You can also contact the dealership where you bought the vehicle. Another option is checking your credit file. The FCA says credit reference agencies can help you identify historical finance information, and Equifax has a car finance checker that includes many records going back to 2007.

Try to collect as much information as possible before submitting your complaint. However, you should not assume that missing paperwork prevents you from complaining.

Step 3: Check Whether the Complaint Has Already Been Resolved

Before making a new complaint, establish whether you have previously:

• Complained to the lender
• Taken the complaint to the Financial Ombudsman Service
• Started court proceedings
• Accepted compensation
• Used a claims management company or law firm

The FCA scheme does not apply in some situations where a complaint has already been determined by the Financial Ombudsman Service or a court, or where compensation has already been accepted.

If you have already instructed a claims company or solicitor, check your agreement before submitting another claim yourself. Multiple representatives can create unnecessary complications and fees.

Step 4: Complain Directly to the Lender

The next stage is to complain to the finance lender.

The FCA provides a lender search facility with relevant contact information, complaint templates and links to dedicated complaint forms.

Your complaint should clearly identify the finance agreement and explain that you are complaining about commission arrangements associated with the motor finance.

You do not necessarily need to know exactly how much commission was paid before complaining. The lender holds information about its own finance and commission arrangements.

A straightforward complaint should include the information needed to identify your agreement and explain why you believe the commission arrangements may have affected the finance or were not properly disclosed.

Step 5: Keep Evidence of Your Complaint

Keep a copy of everything you submit.

This can include:

• Your complaint letter or online submission
• Emails
• Confirmation numbers
• Finance agreements
• Statements
• Lender responses
• Documents from the dealership
• Letters from claims companies
• Ombudsman correspondence

Keeping a clear record can make the process easier if you later need to challenge a response or refer the complaint to the Financial Ombudsman Service.

Step 6: Wait for the Lender’s Response

After receiving your complaint, the lender will assess it under the applicable rules.

The current situation is unusual because the FCA’s motor finance redress scheme has been legally challenged. The FCA says parts of the scheme have been suspended while the legal challenge is considered. The Upper Tribunal is due to hear the challenge in December 2026 or February 2027.

As a result, some customers may need to wait longer before receiving a final compensation calculation.

The FCA currently says that, if the scheme is upheld and the judgment is not appealed, payments under the scheme are expected to begin in 2027.

Step 7: Review the Lender’s Decision

When the lender responds, carefully check whether it says:

• Your complaint is covered
• You are not entitled to compensation
• You are owed a specific amount
• Your complaint is outside the scheme
• More information is required
• Your complaint is considered out of time

If you receive a redress determination and disagree with it, the FCA says you have one month to accept or challenge the lender’s response.

Do not ignore the deadline stated in the lender’s correspondence.

Step 8: Consider the Financial Ombudsman Service

If you are unhappy with the lender’s redress determination, you may be able to refer the complaint to the Financial Ombudsman Service.

The Financial Ombudsman Service is free for consumers and can assess whether the lender has followed the applicable FCA motor finance redress scheme rules.

The Ombudsman says that customers covered by the scheme should wait for the lender’s response before bringing a complaint to the service. If the lender provides a redress determination and you remain unhappy, the Ombudsman may then consider whether the scheme rules were correctly followed.

Always follow the deadline shown in your lender’s determination letter.

Step 9: Accept the Compensation If You Are Satisfied

If you receive a compensation offer and decide to accept it, follow the lender’s instructions.

Under the FCA’s current process, once you accept the offer, the lender will have one month to pay the compensation.

Be careful with payment information. The FCA warns consumers not to share PINs or passwords and recommends making sure that communications genuinely come from the relevant lender.

Current Car Finance Claim Timelines

The current process is affected by the legal challenge to the FCA scheme.

For customers whose agreements began on or after 1 April 2014 and who complained by 30 June 2026, lenders should contact them about cases where no compensation is owed by 18 November 2026, subject to certain exceptions.

For agreements that began before 1 April 2014, customers who complained by 31 August 2026 should generally receive such a communication by 18 January 2027, again subject to exceptions.

These dates should not be interpreted as guaranteed payment dates. The FCA currently says that lenders do not need to calculate or pay compensation under the suspended parts of the scheme while the legal process continues.

How Much Compensation Could You Receive?

There is no single guaranteed compensation amount.

The FCA currently estimates that people who receive compensation will get around £830 per agreement on average, but individual amounts can be higher or lower.

Under the scheme’s methodology, compensation can depend on factors including the commission paid, estimated loss and interest.

For many cases, the FCA describes compensation as being based on the average of the estimated loss and commission paid, with interest. In more serious cases, all commission paid plus interest may be returned.

The calculation can also be subject to limits. This means you should not rely on advertisements claiming that every eligible customer will receive a particular amount.

Should You Use a Claims Management Company?

You do not have to use a claims management company or law firm to make a motor finance commission complaint.

The FCA says consumers can complain directly for free. It also warns that using a claims management company or law firm can result in fees of up to 36%, including VAT, from compensation.

For example, if a customer received £1,000 and a firm charged the maximum fee described by the FCA, a substantial portion of the compensation could go toward the firm’s charges.

This does not mean professional representation is never appropriate. A person with a complicated legal dispute may decide that independent legal advice is worthwhile. However, consumers should understand the fees and contract terms before signing anything.

The FCA has also warned about misleading car finance claims advertising and has taken action against advertisements that could make consumers believe claims companies are officially connected with the regulator.

Car Finance Commission Claim Process Compared

Route	Main advantage	Main consideration
Complain directly to lender	Free and straightforward	You handle the process yourself
Financial Ombudsman Service	Free for consumers	Usually requires the lender process first
Claims management company	Someone else handles much of the process	Fees can reduce compensation
Solicitor	Professional legal assistance	Legal costs and case complexity

For a straightforward complaint covered by the FCA process, starting directly with the lender is generally the simplest approach.

Common Mistakes to Avoid

Assuming Every Car Finance Agreement Qualifies

The existence of car finance does not automatically create an entitlement to compensation. Check the relevant dates, finance type, commission arrangement and exclusions.

Expecting a Guaranteed Payout

Compensation depends on the individual agreement and applicable scheme rules. Avoid websites or advertisements promising a fixed amount without assessing your circumstances.

Paying a Company Before Understanding Its Fees

Read the contract carefully before signing with a claims company or law firm. Check the percentage fee, VAT treatment, cancellation provisions and any additional charges.

Making Multiple Claims Through Different Representatives

The FCA warns that signing up with more than one firm can create multiple representatives, potential fees and delays.

Ignoring Official Deadlines

If you receive a lender determination, read the deadline carefully. Missing the relevant deadline can affect your ability to take the complaint further.

Trusting Unofficial Compensation Messages

Scammers may impersonate lenders or the FCA. The FCA says it will not ask consumers to transfer money to it or provide PINs and passwords.

Best Practices for Making a Car Finance Commission Claim

Start with the original lender rather than automatically paying a third party.

Gather your finance information before submitting the complaint, but do not delay unnecessarily while searching for every historical document.

Keep copies of all correspondence and record when each complaint or response was submitted.

Read every lender response carefully, particularly any redress determination and deadline.

If you disagree with a decision, consider whether the Financial Ombudsman Service or independent legal advice is appropriate.

Finally, check current FCA information because the motor finance redress scheme is subject to an ongoing legal challenge and the position can change.

Frequently Asked Questions

Can I make a car finance commission claim myself?

Yes. The FCA says you do not need a claims management company or law firm to participate in its motor finance redress process. You can complain directly to your lender without paying a claims company.

What years of car finance can be included?

The FCA currently says the scheme may apply to certain motor finance agreements from 6 April 2007 through 1 November 2024. Other eligibility conditions and exclusions also apply.

Does every car finance agreement qualify for compensation?

No. Eligibility depends on factors such as the agreement date, finance type, commission arrangement, disclosure and scheme exclusions. Some agreements will not qualify.

What was a discretionary commission arrangement?

A discretionary commission arrangement was an arrangement where a broker could adjust the interest rate on a customer’s motor finance and potentially receive more commission when the interest rate was higher. The FCA banned DCAs in January 2021.

How much could a car finance commission claim be worth?

There is no guaranteed amount. The FCA currently estimates an average compensation amount of around £830 per agreement for people who receive compensation, but individual payments can vary significantly.

Do I need a claims management company?

No. You can complain directly to the lender for free. If you use a claims management company or law firm, understand the fees before signing a contract. The FCA says fees can be up to 36%, including VAT, of compensation received.

Can I complain to the Financial Ombudsman Service?

Potentially, yes. If you have received a lender’s redress determination and remain unhappy, the Financial Ombudsman Service may be able to assess whether the applicable scheme rules were followed. Follow the deadline provided by your lender.

When will car finance compensation be paid?

The timing is currently uncertain because the FCA’s scheme has been legally challenged and parts have been suspended. The FCA says that if the scheme is upheld and the judgment is not appealed, payments are expected to begin in 2027.

Conclusion

The car finance commission claim step by step process is relatively straightforward: check your agreement, identify the lender, submit a complaint, keep your records, review the lender’s response and consider the Financial Ombudsman Service if you remain dissatisfied.

The important point in 2026 is that the FCA motor finance redress scheme is not operating entirely normally because of an ongoing legal challenge. This means customers should be careful with claims advertisements that promise immediate or guaranteed compensation.

For most consumers, the sensible starting point is to complain directly to the lender for free and use official FCA and Financial Ombudsman information to understand what happens next. The latest FCA guidance should be checked before making decisions because the legal position and scheme implementation may change.

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