Awareness only · official claim below
What this claim is about
If you bought a car, van or motorbike on finance between April 2007 and November 2024, the deal may have carried commission that pushed up your interest rate — without anyone spelling that out to you.
On many deals the dealer or broker could choose a higher rate to earn more commission (a “discretionary commission arrangement”). The FCA banned these in January 2021, and after the issue went up to the Supreme Court, the regulator confirmed a mass redress scheme in 2026 to check affected deals and pay money back where it’s due.
Right now, payouts are paused while a legal challenge is heard — but the FCA’s advice is simple: if you think you’re affected, complain to your lender. It’s free, you don’t need a claims company, and complaining now puts you in the queue for when the scheme runs. Nothing here is legal or financial advice.
How this kind of claim works
Group claims take different forms. Here’s the shape of this one, in plain terms.
- Discretionary commission (DCA)
- On many deals the dealer could quietly pick a higher interest rate to earn more commission. The FCA banned this in January 2021.
- The FCA redress scheme
- The regulator’s own scheme that makes lenders check affected deals and pay money back where it’s owed — you don’t need a claims company.
- Complain for free
- You can complain straight to your lender at no cost. Claims firms take a slice of any payout for something you can do yourself.
Who’s covered?
- You financed a car, van, motorbike or campervan on PCP or Hire Purchase between 6 April 2007 and 1 November 2024
- It was for personal use (or a sole trader / small-business loan under £25,000)
- You weren’t on interest-free finance, and it wasn’t a lease — those are excluded
How it’s unfolded
- January 2021 The FCA bans “discretionary commission” deals.
- October 2024 The Court of Appeal rules hidden commission needs the customer’s informed consent.
- August 2025 The Supreme Court partly overturns that ruling.
- March 2026 The FCA confirms a mass redress scheme.
- 2027 Payouts expected once a remaining legal challenge is resolved.
Common questions
What should I do now?
The FCA says complain to your lender — it’s free and you don’t need a claims company. Complaining now puts you in the queue for when the scheme pays out.
How much might I get?
The FCA estimates around £830 on average per agreement, but it varies a lot and nothing is guaranteed — no money is being paid yet.
Do I need to pay a claims firm?
No. Claims firms take a cut, often a large one, of any payout — for something you can do yourself for free.
Can complaining hurt me?
No. The FCA has confirmed you can’t be blacklisted or refused service for complaining.
Where to go next
LegalClaimPro is raising awareness — we don’t run a claim and we don’t take your details. Start with the official, independent route:
- Find a regulated solicitor — The Law Society
- Free complaint tool — MoneySavingExpert
- Government guidance on mis-sold motor finance
These open in a new tab. Start with the official, independent options — and remember you can complain to your lender for free.
See other claims