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) has now launched a redress scheme to compensate millions of drivers for unfair motor finance agreements.
Here’s what’s known so far:
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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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Lenders have 3 months from the end of the implementation period to assess claims.
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Compensation payments expected from November 2026.
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The redress scheme has been split into two separate schemes;
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Scheme 1 has a 5 month implementation period and applies to agreements entered into between 6 April 2007 - 31 March 2014
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Scheme 2 has a 3 month implementation period and applies to agreements entered into between 1 April 2014 - 1 November 2024
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Scheme closes on 31 August 2027
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:
Car Finance Claims is supporting 10,000+ claims and preparing clients for next steps
The FCA have confirmed that claims submitted before the end of the implementation period will be assessed under the scheme faster than later submissions. The final deadline for consumers to access the redress scheme is the 31 August 2027.
What should I do now?
The redress scheme has now started.
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