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.
Could You Be Owed Car Finance Compensation?
Millions of UK drivers may be entitled to a refund. Check your eligibility in under 2 minutes — no upfront cost, no obligation.
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.