How Much Can You Claim for Mis-Sold Car Finance?
There is no guaranteed or typical individual payout. Under the FCA's car finance redress scheme (Policy Statement PS26/3, March 2026), the average redress is around £830 per eligible agreement — but amounts vary widely, roughly one in three are capped, and some people will receive nothing. Eligibility and any amount depend entirely on your specific agreement.
That £830 is an FCA average across millions of agreements, not a promise of what you personally will get. Whether you qualify, and for how much, is decided by your lender (or the scheme) based on the commission paid and the facts of your case. You do not need a claims management company to find out — you can complain to your lender directly, for free.
The 2025 Supreme Court ruling and the FCA redress scheme
This is the most important context, and it changed everything that earlier articles on this topic assumed.
The Supreme Court ruling (1 August 2025). In the joined cases of Hopcraft, Johnson and Wrench ([2025] UKSC 33), the Supreme Court mostly sided with the lenders. It held that car dealers are generally not acting as fiduciaries for the customer, and it dismissed the bribery and fiduciary "secret commission" claims — overturning the more consumer-friendly Court of Appeal decision of October 2024. The court upheld only the narrower part of Mr Johnson's case: an "unfair relationship" claim under section 140A of the Consumer Credit Act 1974. The practical result is that there are no automatic, blanket payouts for everyone who had car finance. This was not a sweeping "win for consumers", and it did not confirm that all car finance was mis-sold. Instead, redress is being delivered through the FCA scheme below.
The FCA redress scheme (confirmed 30 March 2026). The Financial Conduct Authority confirmed an industry-wide, free redress scheme in Policy Statement PS26/3 (FCA, 2026). Key points:
- It covers car, van, motorbike and campervan finance taken out on hire purchase (HP) or PCP between 6 April 2007 and 1 November 2024, where commission was paid (rules differ either side of the 1 April 2014 split).
- It is not limited to discretionary commission arrangements (DCAs). It also covers high-commission arrangements and undisclosed ties between dealers and lenders.
- The FCA estimates around 37% of agreements are eligible — roughly 12.1 million agreements.
- Once you accept an offer, the lender must pay within one month.
- The FCA estimates total redress to firms of around £7.5bn (about £9.1bn including firms' costs) (FCA, 2026).
Current status — the scheme is under legal challenge. A legal challenge to the scheme was filed in around May 2026, with an Upper Tribunal hearing unlikely before October 2026. The FCA has said this will delay payouts. Timescales are uncertain, so no one can honestly promise that money is being paid now or give you a hard deadline.
What determines how much you might receive?
Because redress flows through the FCA scheme rather than from the old "all your interest back" theory, the amount depends on factors the scheme weighs up — not a simple base-rate-versus-charged-rate sum. The main factors include:
- Whether commission was actually paid, and how much. The scheme is built around undisclosed commission. Very small commissions can fall outside it.
- The type of arrangement. Discretionary commission arrangements (DCAs), where commission was linked to your interest rate, are central. DCAs were banned by the FCA on 28 January 2021, but the scheme reaches all the way to 1 November 2024 and also covers non-DCA commission.
- The size and length of the agreement. Larger amounts financed over longer terms can mean more affected interest, though the scheme applies its own methodology and caps.
- How many eligible agreements you had. If you had several qualifying agreements, each is assessed on its own facts.
Illustrative payout factors
The figures below are illustrative examples to show how factors interact — they are not guaranteed outcomes, quotes or estimates of your case. Real redress is set by the FCA scheme methodology and is often lower than people expect; many results are capped and some are nil. The only reliable benchmark is the FCA's stated average of around £830 per agreement (£829 in PS26/3, FCA, 2026).
| Factor | Illustrative scenario | How it can affect redress (illustrative only) |
|---|---|---|
| Commission type | Discretionary commission arrangement (DCA) | Often more likely to qualify, as commission was tied to the interest rate |
| Commission type | Small or fully disclosed commission | May fall outside the scheme entirely |
| Amount financed | Larger sum (e.g. premium vehicle) | Larger base for any affected interest, but still subject to scheme caps |
| Agreement length | Longer term (e.g. 48 months) | More months of payments assessed, subject to the scheme methodology |
| Multiple agreements | Several eligible agreements | Each assessed separately; totals vary, not additive guarantees |
| Outcome variation | FCA scheme reality | ~1 in 3 results capped; some agreements receive nothing (FCA, 2026) |
Remember: the FCA average is around £830 per agreement, it varies widely, and it is not guaranteed.
What about the old "claim all your interest back" idea?
Earlier guidance — including older versions of this page — suggested you could recover the full gap between a lender's base rate and the rate you were charged, or claim large four-figure sums as a matter of course. After the August 2025 Supreme Court ruling, that reasoning no longer holds. The secret-commission and fiduciary arguments were dismissed, and redress now comes through the FCA scheme on its own terms, with averages around £830 and many results capped.
There is also no longer a "28 January 2024 cut-off" to worry about. That date related to a temporary pause in complaint handling, not your eligibility. The relevant window is 6 April 2007 to 1 November 2024.
Who is and isn't eligible?
Generally eligible (subject to scheme rules):
- Car, van, motorbike or campervan HP and PCP agreements between 6 April 2007 and 1 November 2024 where commission was paid.
- Agreements you have already paid off or settled — these still count.
- Agreements of deceased customers — these are eligible too.
Generally not eligible:
- Personal contract hire (PCH) leases.
- 0% finance deals and arrangements with very small commission.
- The lowest 5% of APR deals.
- Cases already decided by the Financial Ombudsman Service (FOS) or a court.
If you settled early, voluntarily terminated, or handed the car back, that on its own does not remove eligibility — what matters is the agreement and the commission.
What about fees if you use a claims company?
You do not need a claims management company to take part — you can complain to your lender directly, for free, and the FCA scheme is designed to be free to use. The redress will not be larger because you used a firm.
If you do choose to use a claims firm, fees are capped by FCA rules. They are banded by the amount recovered — 15%–30% excluding VAT, which is 18%–36% including VAT (an overall maximum of 36% including VAT). Always check the fee before you proceed.
Can I claim if I cannot remember the exact details?
You do not need to recall the precise interest rate or commission amount. Lenders hold those records, and the FCA scheme is intended to be straightforward to engage with. To get organised, see our guide on what documents you need.
How to find out where you stand
- Check whether you had car, van, motorbike or campervan HP or PCP finance between 6 April 2007 and 1 November 2024.
- Identify the lender(s) — including agreements you have already paid off.
- Complain to the lender directly (free), or ask about the FCA redress scheme.
- Wait for the assessment — bearing in mind the scheme is under legal challenge and timescales are uncertain.
For more on costs and your options, read about how no win, no fee works before deciding whether to use a firm.
Start your claim today
If you had car finance through a dealer between 2007 and late 2024, it may be worth checking whether commission was involved. There are no guaranteed payouts, the FCA average is around £830 per eligible agreement, and the scheme's timetable is currently disrupted by a legal challenge — but checking your position costs nothing.
Submit your details now to find out whether you may be eligible. You can always complain to your lender directly for free instead. You can also see how our claims process works or speak to our team for a no-obligation chat.
This article is for general information only and is not legal or financial advice. The FCA car finance redress scheme is subject to ongoing legal challenge and timescales may change. Sources: Supreme Court [2025] UKSC 33; FCA Policy Statement PS26/3 (2026).
