18/08/2025
The FCA has proposed a £9–18bn compensation scheme for mis-sold car finance dating back to 2007 and January 2021.
Most individuals are expected to receive around £950 per agreement (FCA, 3 Aug 2025).
https://www.theguardian.com/business/2025/aug/03/city-regulator-unveils-car-loan-compensation-scheme-worth-up-to-18bn?utm_source=chatgpt.com
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Many agreements included a discretionary commission model, which may have increased the cost of your finance. There is currently an FCA imposed pause on complaints handling for car finance claims until 4th December 2025 and the FCA have advised that there is likely to be a redress scheme that is free to use which could cost lenders between £9 billion and £18 billion, however, the details of the scheme are not yet clear.
Whether you are owed compensation depends on factors such as the APR, the length of your agreement, and how much you paid. Not all lenders used discretionary commission models, so eligibility varies.
For more details on Car finance claims: https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
Olton Alexander is a Claims Management Company. You do not need to use a Claims Management Company to make a complaint. You can complain to the lender first, and if unsuccessful then to the Financial Ombudsman Service yourself for free.
Olton Alexander Limited work on a No win, No fee basis, if your claim is unsuccessful, you don't pay us a penny. If successful, fees are 18% to 36% including VAT of any redress awarded. Free cancellation within 14 days, after this, work is charged at £60 including VAT per hour.
City regulator says motorists should start to get payments in 2026 with ‘most payouts likely to be under £950’
