The Financial Conduct Authority has confirmed plans for a motor finance compensation scheme covering certain historical commission arrangements. In July 2026, however, an Upper Tribunal decision suspended parts of the scheme while legal challenges continue.
What has changed?
The FCA's scheme is intended to create a consistent process for firms to identify relevant agreements, assess whether a customer suffered loss and calculate redress where it is due. The regulator says the current legal challenge affects implementation, so customers should be cautious about headlines promising a fixed payout date.
What should customers do now?
The FCA's current advice is that a concerned customer should complain to the lender that provided the motor finance. Keep copies of the agreement, lender details and any complaint correspondence. If a broker was involved, it can also be useful to record its name, but the finance provider is normally the starting point for the commission complaint.
Do you need a claims company?
You can complain yourself for free. A claims management company or solicitor may charge a fee or take part of any payment. Read the agreement carefully before appointing one and check that the firm is appropriately regulated.
Watch for scams
Do not give bank credentials, one-time passcodes or remote access to a caller promising compensation. Verify contact details independently and remember that a genuine redress process does not require handing over security information.
What happens next?
The legal position and timetable may change. Check the FCA's motor finance pages for the latest official update rather than relying on an old social post or an estimated payout calculator.
In short
Make a complaint directly to the lender if you are concerned, keep your records and wait for confirmed FCA guidance on the timetable. No broker can promise that a particular agreement will result in compensation.
Primary sources
This article is an original summary. Check the official sources for the latest position.