Have you been mis-sold car finance?
If you took out motor finance between 2007 and 2024 and weren’t told about certain financial arrangements, you may be due £829* in compensation.
Could this be you?
We are a claims management company with relevant expertise. However, you don’t need to use a third party to make a complaint. If you’re unhappy with a firm’s response, you can refer your case to the Financial Ombudsman Service free of charge.
Important: You should only appoint one representative for your car finance complaint. Appointing more than one firm may cause delays and could result in you being charged cancellation or success fees by another representative.
What’s the latest?
The Financial Conduct Authority (FCA) launched a redress scheme to compensate millions of drivers for unfair motor finance agreements on the 31 March 2026.
IMPORTANT! Update 8 May 2026 - The scheme has now been delayed due to a legal challenge from lenders including Mercedes Benz Financial Services and Volkswagen Financial Services.
Read the FCA announcement here
Here’s what’s known so far:
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The redress scheme has been split into two separate schemes;
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Scheme 1 applies to agreements entered into between 6 April 2007 - 31 March 2014
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Scheme 2 applies to agreements entered into between 1 April 2014 - 1 November 2024
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The FCA redress scheme may change depending on the outcome of the legal challenge.
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The Scheme has now been delayed
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Up to 12 million agreements could be eligible
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*Average redress estimated by the FCA to be £829 per agreement
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Lenders expected to return around £7.5 billion to customers (FCA assumes only 75% uptake)
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The legal challenge is unlikely to be heard until October 2026 at the earliest.
Are you owed compensation?
You could be entitled to compensation if your finance agreement included one of the following:
Discretionary commission
Where a dealer could alter your interest rate to increase their commission and the amount was more than the min threshold.
High fixed commission
Where the undisclosed commission amount was at least 39% of the total cost of credit and 10% of the loan.
Tied lender agreement
Where a dealer had an undisclosed arrangement giving one lender the right of first refusal, and there was no clear connection between the lender and the dealer.
Minimum threshold
The FCA have implemented a minimum threshold condition for an agreement to be eligible for compensation. A min £120 commission paid on agreements before April 2014 and £150 for all agreements post that date.
The FCA estimate the redress scheme will see a 75% uptake costing lenders £7.5 billion.
Why Hallbrook?
Experts in finance claims
For over 15 years, Hallbrook has helped clients recover more than £70 million in compensation for mis-sold financial products – from pensions and shares to CFDs and bonds.
Thanks to our industry experience, we identified the mis-sold motor finance issue early and have been working on it for several years.
What’s happened so far?
March 2019:
FCA publishes report on unfair commission arrangements.
November 2022:
Hallbrook launches Car Finance Claims to support affected consumers.
2024 – 2025:
Complaints upheld by the Financial Ombudsman; FCA pauses response deadlines while it investigates.
August 2025:
Supreme Court ruling narrows some claims but refunds are expected for unfair agreements.
October 2025:
FCA announces consultation on a redress scheme to compensate drivers
2026:
FCA announce final motor finance redress scheme policy and launch on the 30th March. Lenders given a 3-5 implementation period depending the agreement time frames. Read more about the redress scheme here.
Current:
8 May 2026 - Lenders have submitted a legal challgence which will delay the scheme. A hearing is unlikely befoer October 2026 and timescales remain uncertain pending the outcome.
The FCA announced that the scheme has been delayed due to a legal challenge. They have also stated that consumers should continue to make a complaint if they believe they were affected by an unfair motor finance agreement.
What should I do now?
The redress scheme has been delayed.
Your lender will be in touch if they think you have an eligible claim, but you should complain now if you want it dealt with faster.
You can make a claim yourself for free but if you don't have time or would prefer to instruct a third party representative then we can help.
What we’ll do for you
Check if your finance deal fits the FCA’s proposed rules
Contact your lender and seek compensation through the redress scheme
Keep you updated on timelines and next steps
Handle your claim from start to finish