Deadlines for car finance commission claims

If you think a car finance deal hid commission from you, the deadline that matters most is 31 August 2027. That is the date by which anyone the lender does not contact can still complain to their firm under the FCA's motor finance redress scheme¹. The scheme covers motor finance agreements taken out between 6 April 2007 and 1 November 2024, and the FCA says 12.1 million agreements made between 2007 and 2024 are now eligible for compensation².

The scheme is split in two. One covers agreements from 6 April 2007 to 31 March 2014, with an implementation deadline of 31 August 2026. The other covers agreements from 1 April 2014 to 1 November 2024, with an implementation deadline of 30 June 2026⁴. New rules for the scheme were announced on 30 March 2026, and the scheme's effective date is 31 March 2026¹.

If you have already complained, the timing is different. Lenders have three months from the end of the implementation period to tell those who have complained whether they are owed compensation and how much⁴. If you have not complained, the FCA advises that the lender will contact you within six months of the scheme starting².

Car finance commission claims will go through an FCA redress scheme

The FCA has launched a redress scheme for borrowers, and it covers certain motor finance agreements¹. The scheme is a Section 404 scheme, which is the FCA's power to require firms to establish and operate consumer redress schemes⁸. The FCA can also impose a requirement on an authorised person, electronic money issuer or payment service provider to establish and operate a scheme corresponding to, or similar to, a consumer redress scheme⁸.

The scheme covers two periods. Scheme one runs from 6 April 2007 to 31 March 2014. Scheme two runs from 1 April 2014 to 1 November 2024⁴. The scheme rules for the 2014 to 2024 period say the agreement must have been entered into during the period beginning with 1 April 2014 and ending with 1 November 2024⁵. The rules for the earlier period say the agreement must have been entered into during the period beginning with 6 April 2007 and ending with 31 March 2014⁹.

The scheme comes into force on the scheme effective date, which is 31 March 2026, and has no end date⁵. The implementation period is a period of three months beginning with the scheme effective date⁵.

How a Section 404 redress scheme works

A Section 404 scheme is a set of rules the FCA makes that requires firms to identify affected customers, assess whether they lost out, and pay redress. The FCA can use its powers under section 404 of the Act to make rules requiring authorised persons, electronic money issuers and payment service providers to establish and operate consumer redress schemes⁸.

Under the motor finance scheme, the implementation period is three months from the scheme effective date⁵. Lenders then have three months from the end of the implementation period to let those who have complained know whether they are owed compensation and how much⁴.

Where a lender receives a complaint relating to a motor finance agreement after the end of the implementation period and before the end of a period of 17 months beginning with the scheme effective date, it must be treated as if received before the end of the implementation period, with communications sent within three months of receipt¹¹. In cases with insufficient evidence, the lender must give the consumer at least one month to respond to the provisional redress decision and provide any relevant records and information¹¹.

For the 2007 to 2014 scheme, a lender should conduct the assessment of limitation with reference to the position on 25 March 2026¹¹.

Complaint pauses: why lenders can put your claim on hold

The FCA has used temporary rules to pause complaint handling in motor finance cases. Under government plans announced in May 2026, the FCA will be exempt from the usual obligation to consult before making rules to pause complaint handling, and will be able to pause the handling of relevant complaints which have reached the Financial Ombudsman Service where immediate pausing is in the interests of affected consumers and firms¹².

The FCA has also removed temporary rules extending how long businesses have to reply to complaints about the leasing of vehicles, sometimes called hire agreements¹. A previous pause rule required respondents to update published information about the pause to time limits and refer consumers to the FCA's car finance complaints page until 21 November 2024¹³.

The Financial Ombudsman Service says it will not be able to look at a case until there is a redress determination, or the deadline for providing a redress determination has passed¹. It also says: "Please wait until you hear from your lender before bringing a complaint to us"¹.

Complaints brought to the ombudsman before 30 March 2026 are not affected by the scheme, and the ombudsman will investigate them and give an answer in due course¹.

What the FCA's redress changes aim to achieve

The FCA's redress scheme is designed to get compensation to borrowers without each one having to take a case to the ombudsman or court. The FCA has launched a redress scheme for borrowers⁷, and the scheme is described as a forthcoming Section 404 redress scheme for cases about Motor Finance Commission¹⁴.

The scheme covers deals from 2007 to 2024¹⁵. Millions of drivers are set to get around £830 each under the FCA's free redress scheme covering that period¹⁵.

The FCA's powers here sit alongside its other consumer protection tools. The FCA is a designated public enforcer under Part 3 of the DMCCA, allowing it to act through seeking court orders which may include redress for breaches of consumer protection legislation⁸. It can apply to court for restitution or require restitution where an unfair term also amounts to a rule breach causing loss to consumers⁸. However, the FCA does not have the power to grant redress to consumers who have suffered loss because a term or notice is unfair or insufficiently transparent⁸.

The government has also consulted on reviewing the Financial Ombudsman Service, including the FCA's role in pausing complaint handling¹².

Is there a time limit for making a car finance commission claim?

There are several time limits, and which one applies depends on your situation.

For the redress scheme, the key deadline is 31 August 2027 for anyone not contacted by their lender¹. If the lender does contact you, you must respond within six months if you wish to join the scheme⁴.

For complaints already in the system, a relevant motor finance DCA complaint is one where the respondent received the complaint between 17 November 2023 and 25 September 2024, or sent a final response between 12 July 2023 and 20 November 2024¹³. For those complaints, the six-month period to refer a complaint to the Financial Ombudsman Service is extended to fifteen months where a final response was sent between 12 July 2023 and 20 November 2024¹³. The three-year period in the complaints record rule is treated as not running from 11 January 2024 to 25 September 2024¹³.

Separately, a court claim under section 140A of the Consumer Credit Act seeking a monetary remedy has a limitation period of six years from the end of the credit relationship, which will normally be the end of the motor finance agreement¹¹. This applies in England and Wales, and in Northern Ireland the period is also six years from the end of the motor finance agreement⁵.

The Financial Ombudsman Service cannot help with complaints made more than three years after you know there is a problem¹⁶.

Do I need to complain to my lender before the redress scheme starts?

No. The Financial Ombudsman Service asks consumers to wait until they hear from their lender before bringing a complaint to it¹. If you have not complained, the FCA advises that you will be contacted by the lender within six months of the scheme starting².

If you have already complained, the lender has three months from the end of the implementation period to let you know whether you are owed compensation and how much⁴. If you are not contacted, you can still complain to your firm by 31 August 2027⁴.

The ombudsman says it will not be able to look at a case until there is a redress determination, or the deadline for providing a redress determination has passed¹.

Will a lender contact me if I am covered by the scheme?

If you have not complained, the FCA advises that the lender will contact you within six months of the scheme starting². Consumers who are contacted by lenders and wish to join the scheme must respond within six months⁴.

Anyone not contacted has until 31 August 2027 to make a claim¹.

Do I need a claims company to get car finance compensation?

No. You do not need to use a claims management company to make a complaint, and it is free to do it yourself¹⁷. If you choose to use a claims management company for this type of complaint, it should fully explain the temporary complaint handling rules and make sure its advertising is not misleading¹⁸.

Where to get help with a car finance claim

The FCA Consumer Helpline is 0800 111 6768⁶. Large print, Braille and audio formats of the FCA's information are available from the same number⁶. The FCA's contact number also appears in its mortgage conduct rules for checking the Financial Services Register¹⁹.

The Financial Ombudsman Service can help with complaints about motor finance commission, and it has published guidance on how it handles these cases¹. It also handles complaints about vehicle repairs under motor insurance policies, including delays, quality of repair, further damage, refusal to repair all damage, guarantees, replacement vehicles and write-off decisions²⁰.

If you are struggling with debt while waiting for a decision, free and impartial help is available. Some creditors will put your account on hold while they look into your complaint, though others may keep contacting you for payments depending on the type of debts²¹. Creditors aware of mental health circumstances may put collection activity on hold for a short period, contact you at set times only, contact you in certain ways such as by letter rather than phone, allow extra time to gather information, agree not to pass your debt to a debt collection agency, and use specialist staff²². HMRC may agree to put a debt on hold for 12 months if you cannot afford £10 a month and it will take longer than three years to pay off the debt²³.

For complaints about a creditor or energy supplier, the process depends on the type of debt²¹. The Financial Ombudsman Service has published an easy-read consumer leaflet explaining how it works¹⁶.