Overview

• The Supreme Court is set to rule in July on whether undisclosed dealer commissions on car finance deals taken out before January 28, 2021 were unlawful
• The regulator has pledged to launch a comprehensive redress scheme within six weeks of the verdict and will exclude claims management companies to lower costs for consumers
• Lloyds Banking Group, Santander UK and Close Brothers have already set aside over £1.5 billion for potential claims, while analysts warn total industry provisions could exceed £30 billion
• The FCA is designing the scheme to safeguard market stability and ensure motor finance remains accessible for future buyers
• Drivers who believe they were overcharged should submit complaints directly to their lender before the December 4, 2025 response deadline