The Financial Conduct Authority (FCA) has issued an update on their PCP car finance compensation scheme. Here's what it actually means for claims.

The average payout for a PCP car finance claim will be £829 per agreement as part of the FCA’s official redress scheme. This is slightly more than originally estimated.

There’s no exact figure for what percentage of car finance claims are approved. However, the FCA believes around 12 million agreements are eligible for compensation.

The FCA deadline for submitting a PCP car finance claim is 31 August 2027, although acting sooner could help you receive compensation faster.

To make a complaint about PCP car finance, you can complain directly to your lender, take it to the Financial Ombudsman Service, or use a Claims Management Company like Claim Smart.

If you have submitted a PCP claim, you should hear whether it was approved within 3 months of the relevant FCA scheme start date, especially if you complained early.

People are getting refunds for PCP car finance because, between April 2007 and November 2024, lenders allowed car dealers or brokers to inflate interest rates and earn more than they should have - at the customer's expense.

To make a PCP car finance claim, you’ll need to provide your original finance agreement, proof of identity, bank statements, and a formally written complaint.

You can absolutely make a PCP car finance claim for more than one vehicle if you were mis-sold car finance.

To be eligible for compensation from mis-sold car finance, you need to have bought the car between 6th April 2007 and 28th January 2021.

You can make a mis-sold car finance claim against a long list of major lenders. Most major UK motor lenders are involved. These include Volkswagen Financial Services Ltd, Mercedes-Benz Financial Services UK Ltd, Santander Consumer PLC and more.

If you were mis-sold car finance, there may be a discretionary commission arrangement involved in your contract. You can find this out by reviewing your paperwork, contacting your lender directly or reaching out to where you got your car from.

Lloyds, the biggest player in the motor finance sector through its Black Horse division had previously set aside £1.15 Billion. Since the announcement of the scheme consultation it has increased this provision to to just under £2 Billion.

FCA publishes a consutation paper on an industry wide scheme to compensate motor finance customers who were treated unfairly between 2007 and 2024. The Consultation will close on 18 November 2025 for comments on the overall design of the Motor Finance Consumer Redress Scheme and on 4 November 2025 for comments on the proposals to further extend how long firms have to provide a final response to certain motor finance complaints. If adopted, the Motor Finance Consumer Redress S

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