Where things stand (updated 21 October 2026)
| 30 March 2026 | The FCA confirmed the compensation scheme: 12.1 million agreements, about £7.5 billion in compensation, about £829 each on average. |
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| 2 July 2026 | The Upper Tribunal suspended parts of the scheme while legal challenges from three lenders and a consumer group are heard. |
| 16 to 26 February 2027 | The Upper Tribunal hearing. We’ll update this page as soon as there’s a decision. |
| 31 August 2027 | Deadline to complain to your lender if you haven’t been contacted. |
Who the scheme covers
Car, van and motorbike finance taken out between 6 April 2007 and 1 November 2024, where the dealer or broker was paid commission by the lender and you weren’t properly told about at least one of these:
- Discretionary commission: the dealer could raise your interest rate to earn more. This was banned in January 2021.
- High commission: at least 39% of the total interest and charges, and at least 10% of the loan.
- A tie with the lender: the dealer had to offer that lender first, or only that lender.
Left out: interest-free deals, very small commission (£120 or less before April 2014, £150 or less after), and complaints already settled by the Financial Ombudsman or a court.
Do I need a claims company?
No. The FCA says you don’t need a claims company or a solicitor. Complaining to your lender is free, and lenders have to contact people who may be owed money. Claims firms can take over 30% of your compensation.
This checker is different from many you’ll find: it doesn’t ask for your name, email or phone number, and your answers never leave your device. We don’t pass anything to lenders or claims companies.
Letter to your lender
Copy this into an email or letter to your lender. Fill in the parts in brackets.
While the legal challenges continue, your lender may not give you a final answer straight away. Your complaint still counts and keeps your place.
Watch out for scams
- Real letters from lenders include a unique reference number.
- No one genuine will ask you to pay a fee to get your compensation.
- If you’re unsure, contact your lender using the details on their own website, not a number in the message.
Questions
I’ve paid the finance off. Can I still be covered?
Yes. It doesn’t matter if the agreement has ended or the car has been sold.
I can’t remember my lender.
Look at old bank statements for the monthly payments, or check your credit report, which lists finance agreements from the last 6 years.
When will I get paid?
Payments can only start once the legal challenges are decided. The hearing is from 16 to 26 February 2027.