Motor Finance Commission Claims (PCP/HP)
The biggest UK compensation scheme since PPI.
📅 Motor Finance Commission Timeline
Key dates in the motor finance scandal and what they mean for your claim
DCAs Begin
- •Discretionary Commission Arrangements start
- •Dealers could increase your interest rate
- •Commission not disclosed to customers
FCA Warning
- •FCA publishes motor finance review
- •Warns about conflicts of interest
- •Industry slow to respond
DCAs Banned
- •FCA bans Discretionary Commission
- •New fixed commission models only
- •Existing agreements still claimable
Court of Appeal
- •Landmark ruling for consumers
- •Johnson v FirstRand decision
- •Duty to disclose commission established
Scheme Cut-off
- •Agreements up to 1 Nov 2024 included
- •FCA redress scheme scope finalised
- •14.2 million agreements affected
FCA Consultation
- •FCA consults on redress scheme
- •Complaint handling paused
- •Scheme rules being finalised
Pause Ends
- •Complaint handling resumes 31 May
- •Firms must send final responses
- •6 months to escalate to FOS
Records Deadline
- •Firms must retain records until 11 April
- •Claims can still be made
- •Long-term protection for consumers
📊 Key Statistics
✅ Am I Eligible?
The FCA scheme covers agreements from 6 April 2007 to 1 November 2024
Key date: Complaint handling resumes 31 May 2026. Submit now to get in the queue.
Ready to Claim?
Get your motor finance commission back
At a Glance
| Difficulty | ⭐⭐ Medium |
| Time to DIY | 2 hours |
| Average Payout | £700 per agreement |
| Scheme Covers | 6 April 2007 – 1 November 2024 |
| Escalation | Financial Ombudsman Service |
What Is It?
When you bought a car on finance through a dealership, the dealer often received a commission from the lender. In many cases:
- The commission wasn't disclosed to you
- Dealers could set your interest rate higher to earn more commission (Discretionary Commission Arrangements – DCAs)
- You paid more than you should have
The FCA banned DCAs in January 2021, and the Court of Appeal ruled in October 2024 that lenders owe a fiduciary duty to borrowers – meaning they must act in your interest, not against it.
Am I Eligible?
✅ You likely have a claim if:
- You took out PCP, HP, or conditional sale finance between 6 April 2007 – 28 January 2021
- You bought through a car dealership (not direct from a bank)
- The dealer received commission from the lender
- The commission wasn't properly disclosed to you
❌ You're NOT eligible if:
- You had Personal Contract Hire (PCH/leasing) – you never owned the car
- You've already received compensation for this agreement
- You bought directly from a manufacturer's finance arm with no broker involved
- The agreement was after January 2021 (DCAs were banned)
How Much Could I Get?
- Average payout: £700 per agreement
- Range: £100 – £5,000+ depending on loan size and interest rate
- Plus: 8% simple interest on the refund (taxable if over £1,000)
- Total scheme value: £8–11 billion across 14.2 million agreements
Key Dates
| Date | What Happens |
|---|---|
| 6 Apr 2007 | Scheme coverage starts (earliest eligible agreements) |
| 28 Jan 2021 | DCAs banned by FCA |
| Oct 2024 | Court of Appeal ruling (Johnson v FirstRand) |
| 1 Nov 2024 | Scheme coverage ends (latest eligible agreements) |
| Early 2026 | FCA final scheme rules published |
| 31 May 2026 | Complaint handling pause ends |
| 11 Apr 2031 | Firms must retain records until this date |
Step-by-Step Process
Step 1: Find Your Finance Agreement
- Check old paperwork, emails, or filing cabinets
- Request your credit report (free from Experian, Equifax, TransUnion) to identify lenders
- Ask the lender for copies if you've lost them
Step 2: Identify the Lender
Common motor finance lenders:
- Black Horse (Lloyds)
- MotoNovo Finance
- Santander Consumer Finance
- Close Brothers Motor Finance
- BMW Financial Services
- Volkswagen Financial Services
Important: Complain to the lender, not the car dealership.
Step 3: Submit Your Complaint
Write to the lender stating:
- Your name and address
- Agreement number (if known)
- Vehicle details and approximate date
- That you weren't told about commission arrangements
- That you want compensation for any undisclosed commission
📝 Use our template: Motor Finance Complaint Letter
Step 4: Wait for Response
- Lenders have 8 weeks to respond (currently paused until May 2026)
- If rejected or no response, escalate to the Financial Ombudsman Service
Evidence You'll Need
- Finance agreement (or as many details as you can remember)
- Settlement letter (if you paid it off early)
- Credit report showing the agreement
- Any paperwork from the dealership
Don't worry if you've lost documents – the lender must have records and can look up your agreement.
What You'll Get Back
- Refund of excess interest charged (the difference between what you paid and what you would have paid without the inflated rate)
- Plus 8% simple interest from the date of the agreement
- Note: Interest over £1,000 is taxable as savings income
Common Questions
Q: I don't have my paperwork – can I still claim?
Yes. The lender has records. Include as many details as you can (approximate date, dealership, vehicle make/model).
Q: What if my lender has gone bust?
Check if the Financial Services Compensation Scheme (FSCS) covers it.
Q: Should I use a CMC?
No. This is a straightforward complaint. Keep your £252 (30% of £700 + VAT).
Q: The pause is until May 2026 – should I wait?
Submit your complaint now to get in the queue. The pause just means they won't process it until the scheme rules are finalised.