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 £700 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.
What’s the latest?
While the Supreme Court’s 2025 ruling narrowed some claims, many drivers will still qualify — particularly where commissions were unfair or undisclosed.
The Financial Conduct Authority (FCA) has announced a proposed redress scheme to compensate drivers who were unfairly overcharged on motor finance.
Here’s what’s known so far:
-
Up to 14 million agreements could be eligible
-
Average payout estimated at £700 per agreement
-
Lenders expected to return around £8.2 billion to customers
-
Applies to agreements between 6 April 2007 and 1 November 2024
-
Scheme expected to launch in July 2026 (subject to consultation)
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.
High fixed commission
A set payment to the dealer that made your loan more expensive – and wasn’t disclosed to you.
Tied lender agreement
Where a dealer had an undisclosed arrangement giving one lender the right of first refusal.
Even if your commission was fixed, you may still qualify if the costs weren’t made clear when you took out your agreement.
The FCA estimates total compensation may cost lenders £8.2 billion.
Why Hallbrook?
Experts in finance claims
For over 14 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
Current:
Car Finance Claims is supporting 10,000+ claims and preparing clients for next steps
2026:
Scheme expected to go live; compensation payments to follow
The FCA advises consumers to make a complaint now to protect their position.
What should I do now?
When the redress scheme starts, lenders will contact customers – but that could take time.
You can make a claim yourself for free but registering with us now means we’ll prepare everything in advance, so you’re ready to move quickly when claims open.
What we’ll do for you
Check if your finance deal fits the FCA’s proposed rules
Prepare the details you’ll need to move quickly when the scheme launches
Keep you updated on timelines and next steps
Check the firm's calculation of compensation is correct