Free compensation scheme

The Financial Conduct Authority (FCA) has said there will be a new compensation scheme for motor finance consumers who were treated unfairly. It is free to use.

The scheme is due to start from:

  • 30 June 2026 for loans taken out from 1 April 2014 to 1 November 2024
  • 31 August 2026 for loans taken out from 6 April 2007 to 31 March 2014.

The scheme says:

  • who gets compensation
  • how much they will get and when they will get it
  • who doesn't get compensation.

You can claim without paying for help from a law firm or claims management company (known as a CMC).

If you have hired a law firm or claims management company

You might be using a law firm or a claims management company to help you get money back.

If you are using a law firm, they must:

  • check what the Supreme Court's decision and FCA's compensation schme means for you and your claim
  • contact you and explain what it means in a way you can understand
  • tell you what your options are and whether you can use the FCA scheme.

Remember, they may take some of your compensation as payment for their help.

Can I make a compensation claim myself?

You do not need a lawyer or claims company to make a claim. You can contact your lender directly to make your claim. Or, if you are eligible, you will be able to apply for free using the FCA's scheme.

What can I do now?

You could choose to:

  • use the FCA's free scheme; or
  • keep using your law firm or claims management company – make sure they tell you your options and you understand any costs you might need to pay; or
  • make your own claim by contacting your lender directly.

How is this different from other complaints?

This is not about general money matters, car problems or issues with your car dealer. It is only if you paid a lot extra because of a commission deal between the lender and the dealer and you weren’t told.

For other problems, talk to the dealer or use other help options.