Friday, November 8, 2024
3 min read
Am I Owed Car Finance Compensation? How to Check and Complain for Free
You may be owed compensation if you took out car finance between 6 April 2007 and 1 November 2024 and the commission arrangement between the dealer and the lender was not properly disclosed. Checking costs nothing: you complain directly to your lender. Payments are currently on hold while a tribunal hears legal challenges, and the Financial Conduct Authority (FCA) expects them to start in 2027 if the scheme is upheld.
Which car finance agreements are covered?
The FCA scheme covers regulated motor finance, such as hire purchase (HP) and personal contract purchase (PCP), taken out between 6 April 2007 and 1 November 2024. An agreement may qualify if one of these was not properly disclosed to you:
A discretionary commission arrangement: the dealer could raise your interest rate to earn more commission. These were banned in January 2021.
A high commission: the commission was large compared with the cost of the credit.
A tied arrangement: the dealer had to offer one lender first, or only one lender.
Not every agreement in that period qualifies. Many were arranged correctly. Your lender holds the records that show which applies to you.
How do I check and complain?
Find out who the lender was. Look at your finance agreement, old bank statements or your credit report. The lender is the finance company you paid each month, not the dealer.
Contact the lender. Most have a motor finance commission complaint form on their website. Say you want to complain about the commission on your agreement.
Give them enough to find you. Your name, date of birth, your address at the time, and the agreement number or vehicle registration if you have them.
Keep a record. Note the date you complained and keep any reference number.
Escalate if you need to. If you disagree with the lender’s answer, ask it to review the decision, then go to the Financial Ombudsman Service. That is free too.
Do I need a claims company or solicitor?
No. The FCA says complaining directly is free and warns that claims management companies can take more than 30% of any payout. If you have already signed up with one and want to leave, check its cancellation fees first.
How much compensation might I get?
When the FCA published the scheme rules in March 2026 it estimated an average of around £830 per agreement. Your own figure depends on your agreement, and nobody can promise an amount in advance.
When will payments be made?
Not yet. Three lenders and the consumer group Consumer Voice have challenged the scheme, and the Upper Tribunal has suspended the parts that require lenders to calculate and pay compensation. The hearing is listed for either 14 to 18 December 2026 or 16 to 26 February 2027. If the scheme is upheld without a further appeal, the FCA expects payments to begin in 2027. The FCA statement has the latest position, and our guide to the court cases explains how we got here.
What if my finance was arranged through anycolourcar.com?
The process is the same: the complaint goes to the lender that holds your agreement. If you cannot find the lender’s name or your agreement number, call Customer Care on 01226 574321 and we will look it up for you.
Buying on finance now: what should I ask?
Do you receive commission from the lender, and how is it worked out?
Which lenders do you work with?
What is the APR and the total amount payable?
What happens if I want to settle early?
At anycolourcar.com in Barnsley we receive a commission from the lender for arranging finance and we tell you that before you sign. We are a credit broker, not a lender. See how we handle commission and our finance options, or call Sales on 01226 574410.
This guide is general information, not legal or financial advice. Updated October 2026.
