Car Finance Claim: How to Get Your Money Back Before the June 2026 Deadline

On 30 March 2026, the Financial Conduct Authority (FCA) confirmed the biggest consumer compensation scheme in UK motoring history. The Motor Finance Consumer Redress Scheme (PS26/3) will return an estimated £7.5 billion to millions of UK consumers who were overcharged on car finance agreements between 6 April 2007 and 1 November 2024.

The scheme covers an estimated 12.1 million agreements. The average payout per agreement is approximately £829 — though some consumers will receive significantly more depending on the size of their loan and the commission involved.

The key deadline is fast approaching. If your finance agreement started on or after 1 April 2014, lenders must be ready to process your claim from 30 June 2026. For older agreements (before 1 April 2014), the date is 31 August 2026. The absolute final deadline to submit any claim is 31 August 2027.

This article explains exactly what the scheme covers, how to check if you're eligible, how to claim for free (without using a claims company), and what happens after you submit your complaint.

Before You Start

1. Find your original finance agreement. Dig out the paperwork from when you bought the car. You need the lender's name, the agreement number, the date, and the type of finance (PCP, HP, or conditional sale). If you've lost it, check your email inbox for "finance agreement" or "credit agreement" — many lenders send digital copies.

2. Check the dates. The scheme covers agreements entered into between 6 April 2007 and 1 November 2024. If your agreement falls outside these dates, you're not eligible under this scheme.

3. Identify your lender (not your dealer). The complaint goes to the finance company, not the dealership where you bought the car. Common UK motor finance lenders include Black Horse, MotoNovo, Close Brothers, Santander Consumer Finance, Alphera, and BMW Financial Services. The FCA publishes a full searchable list at fca.org.uk/consumers/car-finance-complaints/list-lenders.

1. Understand Why You're Owed Money

The core issue is something called a discretionary commission arrangement (DCA). Between 2007 and January 2021, many car dealers had arrangements with lenders that allowed the dealer to increase the interest rate on your finance agreement. The higher the rate, the more commission the dealer earned — at your expense.

This meant you could walk into a dealership, get quoted 9.9% APR on a PCP deal, and have no idea that the dealer had bumped the rate up from 5.9% specifically to pocket a bigger commission. The FCA banned DCAs on 28 January 2021, but the damage was already done across millions of agreements.

The scheme also covers two other types of arrangements:

• High commission arrangements — where the commission was at least 39% of the total cost of credit AND at least 10% of the loan amount
• Exclusivity arrangements — where the lender had exclusive rights to the dealer's finance business, except where there were visible manufacturer links

2. Check If You're Eligible

You are NOT eligible if:

• You took out a personal loan from a bank (not vehicle-specific finance)
• Your agreement was a lease (operating lease / personal contract hire where you never had the option to own)
• The commission on your agreement was £120 or less (pre-April 2014) or £150 or less (post-April 2014)

If you had multiple car finance agreements across this period, you can claim for each one separately.

3. Choose Your Route: Complain Now or Wait

Our recommendation: Route 1. Complaining now means you'll know the outcome by November 2026 and could have the money in your account before Christmas. Route 2 means waiting until at least mid-2027.

4. How to Complain for Free (Step by Step)

1. Go to the FCA's lender list at fca.org.uk/consumers/car-finance-complaints/list-lenders
2. Search for your lender by name. The table will show you either a link to the lender's dedicated complaint form, or a downloadable FCA template complaint letter
3. Fill in the form or template with your details — name, address, agreement number, and the date of your agreement
4. Submit it via the lender's preferred method (online form, email, or post). If posting, use recorded delivery so you have proof
5. Save a copy of everything you send. You'll need it if you have to escalate later

Alternatively, MoneySavingExpert offers a free complaint tool at moneysavingexpert.com/reclaim/reclaim-car-finance/ — over 3.6 million complaints have already been sent through it.

5. What Happens After You Complain

If upheld, the lender calculates redress based on the difference between what you paid and what you would have paid without the unfair commission. This includes interest at 8% per year on the overpayment.

If rejected, you have the right to escalate to the Financial Ombudsman Service (FOS). You'll have 6 months from the lender's final response. The service is completely free.

6. Don't Use a Claims Company — Here's Why

• They charge 25–50% of your payout — on an £829 average, that's £200–£400 you'd lose
• The FCA has made the process deliberately simple
• The FCA template letter does the hard work
• CMCs cannot speed up the process — lenders have the same deadlines regardless

The FCA itself explicitly states: "There is no need to use a claims management company or law firm."

7. Key Deadlines You Must Not Miss

8. What If You've Already Sold the Car

Good news — it doesn't matter whether you still own the car. The claim is about the finance agreement, not the vehicle itself. Whether you still own it, paid off early, traded in, or handed back at end of PCP — you can still claim.

Worked Example: Estimating Your Redress

Sarah from Manchester bought a 2018 VW Golf on PCP in June 2019.

This is a simplified illustration using hypothetical figures. The FCA's estimated average payout is £829 — most consumers will receive less than the amount shown above.

Final Thoughts

The FCA Motor Finance Redress Scheme is the largest consumer compensation event in UK motoring history. If you financed a car, van, or motorbike between April 2007 and November 2024, there's a real chance you're owed money — and the process to claim it is free and straightforward.

Don't let a claims company take a 30%+ cut of money that's rightfully yours. Use the FCA's free tools, submit your complaint directly to your lender, and aim to do it before the June/August 2026 implementation dates to get your money faster.

If your claim is rejected, you have free recourse through the Financial Ombudsman Service. You have nothing to lose by checking.

For specific legal advice about your individual situation, consult Citizens Advice or a qualified solicitor.

Related reading: PCP vs HP vs Personal Loan | Car Finance Claim Payout Calculator