Car finance claims: what to do if you bought a car on finance
Applies to England – see separate advice for Northern Ireland, Scotland, and Wales
You might be entitled to compensation if both of these apply:
You bought a car, van, or motorbike on finance after April 2007
Your finance lender paid the dealer a commission you weren’t told about
A commission is a type of fee.
On 1 August 2025, the Supreme Court ruled that in some cases it was unlawful for a lender to pay a dealer commission.
The Financial Conduct Authority (FCA) will now set up a redress scheme to decide:
Who can get compensation and how much
How lenders must pay compensation
If you think your dealer was paid commission, you should complain directly to your lender. This guide explains how to do that and how to find out who your lender is. We’ll update this page as more details are confirmed.
If you’re still paying off your car finance
Keep making your payments. Stopping could damage your credit score and risk losing your vehicle.
How to check if your lender paid commission to your dealer
Contact your lender and ask them directly.
How to find out who your lender is
Check your finance paperwork – it should name your lender.
If you were still making payments after 2019, check your credit report (you can do this for free via MoneyHelper – it should list the lender.
If you’re unsure whether a lender financed your purchase, contact them to confirm.
If your lender did pay commission
You might be owed compensation.
The FCA is currently creating rules for the redress scheme, which will outline exactly who qualifies and how much they’ll get. The FCA has said most people will likely get up to £950 per finance agreement.
While the scheme is being finalised, you should still:
Complain to your lender about the commission payment.
Wait for them to contact you once the redress scheme is in place.
Thinking about using a ‘claims management company’ (CMC)?
CMCs can take your case to court, but they will keep part of your compensation as payment.
You don’t need to use a CMC to get compensation. Complaining to your lender yourself is free, and you’ll receive compensation just as quickly.
If you’ve already complained to your lender
You don’t need to do anything right now. Your lender will contact you once the FCA confirms how the redress scheme will work.
If you’ve already started court action
Speak to your solicitor about your next steps. They can advise whether it’s worth continuing your case.
If they recommend stopping, ask if you’ll still need to pay any costs.