Month: February 2026

How Much Car Finance Compensation Could You Actually Receive?

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With billions of pounds potentially owed to UK car finance customers, the obvious question is: how much could I actually get? The honest answer is that it varies — but there are clear factors that determine your payout, and for many people the figure will be meaningful.

The Range of Likely Payouts

Based on industry analysis and early FCA guidance, individual compensation amounts are expected to range from a few hundred pounds to over £5,000 per agreement. The most commonly cited average is in the region of £1,000 to £2,000, though customers with larger or longer-term deals could receive considerably more.

What Factors Affect Your Amount?

The size of your original finance agreement matters — a £25,000 deal will generate a larger absolute overcharge than a £10,000 one. The interest rate you were charged relative to what you should have paid also determines the gap, as does the length of your agreement. The longer the term, the more interest payments were affected.

Will I Also Receive Statutory Interest?

Potentially yes. In many financial mis-selling cases, redress includes 8% statutory interest on the overcharged amount, calculated from the date of each payment. For agreements that are several years old, this could add a significant sum on top of the base figure.

What About Multiple Agreements?

If you took out more than one PCP or HP agreement before January 2021, you may be able to claim on each one separately. If you changed cars every three to four years, your total compensation could be two or three times the per-agreement figure.

When Will Payments Be Made?

Lenders have been given extended time by the FCA to process complaints, and payments are not expected to begin widely until late 2025 at the earliest. That is exactly why registering now matters. Start your eligibility check today to get in the queue before deadlines are set.

The FCA Car Finance Investigation: Timeline and What Happens Next

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The car finance mis-selling saga has unfolded over several years, with multiple regulatory and legal milestones along the way. Understanding the timeline helps you know where things stand — and what to expect next.

January 2021: The FCA Bans DCAs

The Financial Conduct Authority banned discretionary commission arrangements from 28 January 2021, following concerns that they created a direct conflict of interest between dealers and customers. At this stage, the regulator stopped short of ordering redress for historic agreements.

January 2024: The FCA Opens Its Review

The FCA announced a formal review into whether customers who had PCP or HP agreements before the ban were owed compensation. Lenders were told to pause processing of complaints while the review was underway. The FCA also extended the deadline for lenders to respond to existing complaints, giving itself time to determine the right redress framework.

October 2024: The Court of Appeal Ruling

In a landmark judgment, the Court of Appeal ruled that lenders had breached their fiduciary duty by paying secret commissions to dealers without customers’ informed consent. This was a major escalation: it meant the legal basis for redress was far stronger than previously assumed. Lender share prices fell sharply on the day of the ruling.

Early 2025: The Supreme Court Appeal

Several lenders appealed to the Supreme Court, seeking to limit their exposure. The Supreme Court hearing took place in April 2025. Its ruling is expected to provide the definitive legal framework on which the FCA’s redress scheme will be built. A decision is anticipated in summer 2025.

What Comes Next?

Once the Supreme Court rules, the FCA is expected to publish its final redress scheme, setting out exactly how compensation will be calculated and paid. Lenders will then be required to contact affected customers proactively or process claims that have already been registered. This process is likely to play out through 2025 and 2026.

Why Register Now?

Customers who register their claim before the FCA publishes its scheme will be well positioned for swift processing once the framework is in place. Waiting until the scheme is announced risks missing early deadlines or being deprioritised. Check your eligibility now to make sure you are in the queue.

Black Horse Car Finance Claims: Everything You Need to Know

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Black Horse, the car finance arm of Lloyds Banking Group, is one of the most widely used car finance providers in the UK — and one of the lenders most prominently named in relation to the ongoing mis-selling scandal. If your finance was provided by Black Horse, here is everything you need to know.

Who Is Black Horse?

Black Horse is a trading name of Lloyds Bank plc and is one of the largest motor finance providers in the UK, funding millions of car purchases through dealerships over the past two decades. Because of this scale, Black Horse features heavily in the FCA’s investigation into discretionary commission arrangements.

What Has Lloyds Said?

Lloyds Banking Group has set aside over £450 million in provisions to cover potential car finance redress — one of the largest provisions made by any UK bank in relation to this issue. That figure has been revised upwards as the scale of potential liability has become clearer.

Am I Eligible If My Finance Was Through Black Horse?

You are likely eligible if your Black Horse agreement was a PCP or hire purchase deal arranged through a dealership before 28 January 2021. The key test is whether a discretionary commission arrangement was in place — which was standard practice across the industry during this period.

What If My Complaint Was Previously Rejected?

Many customers who complained to Black Horse directly received holding responses or rejections before the Court of Appeal ruling. If your complaint was previously turned down, that decision may need to be revisited in light of the new legal position. You are not prevented from pursuing a fresh claim.

What Should You Do Now?

The most important step is to register your interest before deadlines are set by the FCA. Check if your Black Horse agreement qualifies — it takes just a couple of minutes and could be the first step towards thousands of pounds in compensation.

Do You Need a Claims Company for Your Car Finance Claim, or Can You Do It Yourself?

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One of the most common questions we hear is: do I actually need a claims management company, or can I just complain to my lender directly? The answer depends on your circumstances — and here is an honest look at both routes.

The DIY Route: Complaining Directly to Your Lender

You have the right to complain directly to your lender at no cost. You can write to their complaints department, explain that you believe a discretionary commission arrangement was in place on your agreement, and request redress. If the lender rejects your complaint or fails to respond within eight weeks, you can escalate to the Financial Ombudsman Service — also free of charge.

The DIY route costs you nothing financially. However, it does require your own time to research, write, and follow up on your complaint. It can also be more difficult to navigate if your lender uses technical language or pushes back on your claim.

Using a Claims Management Company

A claims management company (CMC) will handle the process on your behalf — identifying your agreement, drafting your complaint, liaising with lenders, and escalating if needed. This removes the administrative burden from you entirely. In return, a CMC typically charges a fee, usually a percentage of any compensation you receive — commonly between 20% and 36% including VAT. No win, no fee arrangements mean you pay nothing if the claim is unsuccessful.

Which Is Right for You?

If you are comfortable dealing with financial institutions, have time to manage correspondence, and know the details of your agreement, the DIY route can save you money. If you would rather have someone else handle it, or you have multiple agreements across different lenders, a CMC can simplify the process considerably. The key is to understand the fee structure clearly before signing up with any company.

What About the FCA Redress Scheme?

Once the FCA’s formal redress scheme is in place, lenders may be required to contact affected customers directly — which could mean you receive compensation without having to claim at all. However, this is not guaranteed for every affected customer, and registering a claim in advance provides an additional layer of protection.

Whatever route you choose, the first step is the same: check whether your agreement is eligible before deciding how to proceed.