Car Finance Redress Scheme: Your Guide to Reclaiming Unfair Commission

If you purchased a car, van, or motorbike on PCP or Hire Purchase between April 2007 and November 2024, you could claim back an average of £830 per agreement. The FCA has set up a mass redress scheme targeting unfair commission charges, with around 12 million agreements potentially mis-sold in the UK. There are no upfront fees, and you don’t need to pay third-party claim companies to start your claim.

Step-by-Step: How to Make a Claim

1. Gather your original car finance details, such as agreement number and lender.

2. Use the free complaint tool, answering simple questions about your agreement.

3. Generate and send the complaint email directly to your finance provider.

4. Wait for your provider’s response on eligibility and any payout offer.

5. Accept the offer if you agree and receive your payment within a month.

Main Benefits of the Redress Scheme

The scheme is regulated, giving you peace of mind that your rights are protected throughout the process. Most importantly, the free tools let you submit a claim independently, avoiding fees from claim companies.

The average payout per eligible agreement is considerable, and all guidance is designed for simplicity. Even if you paid off your finance years ago, you could benefit.

Possible Downsides and Considerations

There may be delays due to ongoing legal challenges affecting the scheme’s timetable. Patience may be required while everything is resolved.

Not all finance types and deals are covered, such as interest-free offers or limited company vehicle purchases. Double-check your eligibility before claiming.

Our Verdict

The FCA car finance redress scheme is an excellent opportunity to reclaim what you might be owed—without unnecessary costs or admin headaches. It’s safe, effective, and most consumers can handle the process independently. Overall, it’s a recommended and consumer-friendly offer.