What’s going on with motor finance commission claims?
If you took out motor finance using PCP, hire purchase, or conditional sale between April 2007 and November 2024, you may be eligible for compensation if commission was paid to the broker/dealer and it wasn’t properly disclosed, or it created an unfair outcome. The FCA has said the issue concerns historic practices where consumers were denied transparency and, in some cases, paid more as a result.
Following the Supreme Court judgment (handed down 1 August 2025), the FCA confirmed it would proceed with designing a formal redress scheme.
The FCA’s estimates indicate the scheme could be very large: around 14 million agreements may be in scope, with potential compensation of around £700 per agreement on average, and total redress of around £8.2bn (figures are FCA estimates and individual outcomes will vary).
Key dates to know
The FCA has been consulting on how the scheme should work and is now moving from consultation into finalisation and implementation.
12 Dec 2025 - Consultation on the proposed redress scheme closed (per commentary on the consultation timeline).
31 May 2026 - The FCA complaint-handling “pause” ends and firms must resume complaint handling under the FCA timetable.
During 2026 - The FCA expects compensation to begin being paid out during 2026 (exact timing will depend on final rules and implementation).
Why did the FCA pause complaint handling?
The FCA introduced a pause so complaints wouldn’t be dealt with inconsistently while the regulator determines a standardised approach. The FCA has confirmed the pause will lift on 31 May 2026, to allow time to finalise and begin implementing any compensation scheme and for firms to prepare.
What we’re doing while the FCA process continues
Even while firms aren’t issuing final responses during the pause, a well-run claim shouldn’t be “on hold” internally. Typical steps during this period include:
- Organising and checking documentation so a claim can move quickly once the scheme is live
- Monitoring FCA updates (consultation papers, policy statements, and guidance) to keep advice accurate and current
- Planning next steps so the claim is ready to progress as soon as the timetable allows
In most cases, you don’t need to take any action right now if your complaint has already been submitted. The key is to avoid doing anything that could accidentally weaken your position (for example, accepting an offer without advice).
How the FCA scheme is expected to work (in broad terms)
The FCA’s consultation materials indicate the scheme is aimed at addressing unfairness linked to commission arrangements in motor finance, including concerns about inadequate disclosure and incentives that may have led to higher costs for consumers.
While final details will be confirmed by the FCA’s rules and implementation documents, the core concepts are:
- Scope: regulated PCP/HP/conditional sale agreements in the relevant date range
- Assessment: whether commission and disclosure issues created an unfair outcome
- Redress: compensation based on consumer harm, with the FCA estimating an average outcome around £700 per agreement (plus applicable interest where provided for)
FAQs
Do I need to do anything right now?
If your complaint has already been lodged, usually no. The FCA’s pause means final responses aren’t required until the pause lifts.
Should I switch solicitor/claims firm to speed things up?
In most cases, switching representatives won’t make the FCA timetable move faster, and it can add delay and extra administration.
What if I had more than one finance agreement?
Each agreement may need to be assessed on its own facts. If multiple agreements fall within scope, you may have multiple potential claims.
What if my lender contacts me directly?
Keep the correspondence and send it to caf@complexlaw.co.uk which will allow us to give you the correct advice —especially where the wording suggests a “full and final settlement.” More importantly, we are here to do this for you!
Complex Law have asked for my ID — why?
From time to time, we may need to request identification documents. This can be necessary when arranging payments for your claim, or where a lender requires additional information to locate and match your complaint to the correct finance agreement. Providing these documents promptly helps avoid delays later in the process.
Do you need anything from me?
Not usually — our aim is to make this as straightforward as possible. However, there may be occasions where we ask you for supporting documents or information if it’s needed to progress your claim (for example, finance paperwork or proof of identity). If we do need anything, we’ll explain exactly what’s required and why.
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