Last updated: 2026-05-16
FCA Car Finance Compensation Scheme (UK)
The Financial Conduct Authority (FCA) is running an industry-wide programme on motor finance complaints, including discretionary commission (DCA). A formal redress scheme is being finalised. Timelines have included a pause on many final lender responses (notably around May 2026 per PS25/18, so confirm current dates on the FCA website).
What the scheme is meant to do
The scheme aims to standardise how lenders assess and pay redress for eligible agreements, building on investigation outcomes and court precedents such as Johnson v FirstRand (2025). Exact calculation methods follow final FCA rules when published.
What you should do while rules are finalised
Many consumers lodge a complaint now so they are in the lender’s queue. You can use our letter generator to produce a compliant complaint document citing PS25/18, then monitor FCA updates for scheme details.
Frequently asked questions
- When will car finance compensation be paid?
- Mass payouts depend on the final scheme and each lender’s process. Some complaints already received outcomes, and many are on hold until the pause lifts. Check the latest FCA consumer pages for dates.
- Is “car finance compensation martin lewis” guidance different?
- MoneySavingExpert and similar sources stress claiming directly without paying large fees to third parties. This tool aligns with that DIY approach where you keep your refund, minus only any clear one-off document fee if checkout is not waived.