What the FCA Motor Finance Redress Scheme Actually Means for Drivers

If you bought a car, van, motorbike or campervan on finance in the last two decades, you may have heard about the FCA's motor finance redress scheme. Here is what it is, who it covers, and what it might mean for you.

The Financial Conduct Authority (FCA) is the regulator responsible for how finance is sold in the UK. In 2024 it confirmed that many motor finance agreements taken out between 6 April 2007 and 1 November 2024 may have involved commission arrangements that were never clearly explained to the driver. A structured redress scheme has since been proposed to give affected consumers a route to complain.

Which agreements are covered

The scheme focuses on regulated motor finance agreements — the kind you take out through a dealership or broker. That includes Personal Contract Purchase (PCP), Hire Purchase (HP), and conditional sale. Cash purchases, business fleet leases outside consumer credit rules and unregulated agreements sit outside the scheme.

• Vehicle type: cars, vans, motorbikes and campervans
• Finance types: PCP, HP and conditional sale
• Agreement start date: between 6 April 2007 and 1 November 2024
• Consumer, not business: the finance was taken out in a personal capacity

What may have gone wrong

The main issue is undisclosed commission. In many cases the dealer or broker who arranged the finance was able to influence the interest rate the driver paid. A higher rate meant a larger commission for the dealer — and that arrangement was often not spelled out in a way the customer could understand.

What redress could look like

The FCA has publicly discussed an illustrative average redress figure of around £829 per qualifying agreement. That is an average, not a promise. Outcomes depend on the individual facts of each case — the commission structure, the interest rate paid, how long the agreement ran, and whether it has already been settled.

You have free routes to complain

You can complain directly to your lender, use the FCA's redress scheme, or refer a complaint to the Financial Ombudsman Service — all at no cost. Some readers prefer help with the paperwork and choose a regulated claims firm; that is optional and firms typically charge a percentage of any settlement.