Overview

• The FCA has not yet launched any compensation scheme and car finance lenders are not contacting customers about payouts
• The regulator will consult on an industry-wide redress framework by early October, with first payments expected in 2026 and total costs estimated at £9bn–£18bn
• The scheme will primarily address harms from discretionary dealer commission arrangements banned in January 2021 on PCP and HP contracts, with most awards under £950 per agreement
• The FCA issued an urgent warning after reports of scammers posing as lenders offering fake compensation and seeking personal and banking details
• Motorists are advised to lodge complaints directly with their finance providers now, forward scam texts to 7726 or use their bank’s 159 service, and avoid claims management firms that could claim up to 30% of any award