FCA’s car finance review
If you took out car finance, the dealer or broker who arranged it was usually paid commission by the lender. That is normal, and on its own it does not mean anything went wrong. But the Financial Conduct Authority (FCA) has found that in some cases the commission arrangement was not made clear to customers, and that this made the agreement unfair.
The FCA’s redress scheme
On 30 March 2026, the FCA confirmed an industry-wide redress scheme for motor finance commission.
Since 2 July 2026, parts of the scheme have been temporarily suspended while the Upper Tribunal considers a legal challenge brought by several lenders. The Tribunal is expected to hear the case in December 2026 or February 2027. This means we cannot yet work out or pay compensation. Everything else continues as normal — you can still complain, and we will still review your complaint.
The three types of commission arrangement the FCA looks at
Discretionary commission arrangements (DCA) – where a dealer or broker could increase the interest rate on your finance to earn more commission. This type of commission was banned from 28 January 2021.
Tied arrangements (sometimes called contractual ties) – where a dealer or broker only offered finance from one lender, or one lender had the first opportunity to provide your finance.
High commission arrangements – where the dealer or broker received a particularly high commission compared with the cost of your finance.
Could this affect you?
You might be affected if:
You took out car finance between 6 April 2007 and 1 November 2024 and weren’t told about the arrangements mentioned in 1-3 above.
Your agreement was either a Hire Purchase (HP) or Personal Contract Purchase (PCP).
You arranged your finance through a dealer or broker.
You’re unlikely to be affected if:
Your agreement started before 06 April 2007 or after 01 November 2024.
Little or no commission was paid (for example, because your finance was cancelled during the 30-day cooling-off period).
The commission arrangement can be shown to have been fair.
Please note: discretionary commission arrangements were banned from 28 January 2021, but the other two types can apply to agreements taken out up to 01 November 2024. So your agreement may still be affected even if you took it out after January 2021.
Most people who complain will not be owed compensation
We want to be straight with you about this, because you may have seen claims suggesting otherwise.
Compensation is only due where we find that one of the three commission arrangements above was in place and that it made your agreement unfair. Having paid commission is not enough on its own. Based on the complaints we have reviewed so far, most customers who complain do not meet those conditions and will not be owed anything.
That does not mean you should not complain if you think you may have been affected — it is free, it takes a few minutes, and we will check your agreement properly. It does mean you should be cautious about anyone who tells you a payout is likely, particularly if they want a share of it.
How to make a complaint
If you think you were affected, you can complain for free – it’s quick and straightforward.
You don’t need to use a claims company. If you go through them, they may charge up to 25% of any compensation (plus VAT). If you’re using a claims company, cancelling doesn’t always mean no fees – check your agreement carefully as fees may still be charged.
You can contact us in a few ways:
Webchat or telephone: zopa.com/contact
Email us at motorfinancecommission@zopa.com
What happens next
We’ll acknowledge your complaint and keep you updated in line with the FCA’s timelines.
If it is not covered, we’ll write to you and explain why. The FCA has kept this part of the scheme running, so we can still do this while the rest is paused.
If it is covered, we can’t yet tell you how much compensation you may receive, or when. The FCA has paused those steps until the Tribunal has reached its decision. If the scheme goes ahead, the FCA expects payments to start in 2027.
You don’t need to chase us. We’ll write to you as soon as we’re able to give you an answer.
The deadline to complain under the FCA’s scheme is 31 August 2027.
For the latest information about the scheme, you can also visit the FCA’s website: fca.org.uk/consumers/car-finance-complaints
Frequently Asked Questions
How do I complain?+–
Contact us using webchat, telephone, or email — the details are above. It is free, and you do not need to pay anyone to do it for you. Tell us your name, date of birth, and the address you were living at when you took the finance out. If you have your agreement number or the name of the dealer or broker, that helps us find your agreement faster, but don’t worry if you don’t.
I’ve already complained. Do I need to do anything?+–
No. If you have already complained to us about motor finance commission, your complaint is with us and you do not need to complain again. You do not need to chase us either — we will write to you as soon as we can tell you something. If your details have changed, please let us know so we can reach you.
When will I get an outcome?+–
If your agreement is not covered by the scheme, we will write to you and explain why. The FCA has kept this part of the scheme running, so we can still do this while the rest is paused. If your agreement is covered, we cannot yet tell you the outcome or the amount, because the FCA has paused those steps while the Upper Tribunal considers the legal challenge. If the scheme goes ahead, the FCA expects payments to start in 2027.
How likely am I to receive compensation?+–
Most people who complain will not be owed compensation.
Compensation is only due where we find that a discretionary commission arrangement, a tied arrangement, or a high commission arrangement was in place, and that it made your agreement unfair. Commission having been paid is not enough on its own — that was, and is, a normal part of how motor finance works.
If you have been told that a payout is likely, or that most people are owed money, please treat that carefully — particularly if the person telling you wants a percentage of it.
What is a discretionary commission arrangement (DCA)?+–
A DCA is where the dealer or broker arranging your finance could increase the interest rate you paid in order to earn more commission for themselves. The FCA banned this type of arrangement from 28 January 2021.
I took my finance out after January 2021 — am I still affected?+–
Possibly, yes. Discretionary commission arrangements were banned from 28 January 2021, but the other two types the FCA looks at — tied arrangements and high commission arrangements — can apply to agreements taken out up to 01 November 2024. So a later agreement can still be in scope.
What if my finance was a personal loan, or a lease?+–
The scheme covers Hire Purchase (HP) and Personal Contract Purchase (PCP) agreements. Unsecured personal loans and personal contract hire (PCH, sometimes called leasing) agreements are not covered, and neither is buying a vehicle outright with your own money.
Do I need to use a claims management company?+–
No. Complaining to us directly is free and straightforward, and you will receive any compensation you are owed in full. Claims management companies and solicitors typically charge a percentage of anything you receive, plus VAT. If you have already signed up with one, check their terms carefully before cancelling — cancelling does not always mean you avoid a fee.
If you are unhappy with a claims management company, you can complain to them first and then to the Claims Management Ombudsman – part of the Financial Ombudsman Service. If you are unhappy with a solicitor, you can complain to the Legal Ombudsman.
What if I’m not happy with the outcome to my complaint?+–
If you are unhappy with our final response to your complaint, you can ask the Financial Ombudsman Service to consider your complaint and our response. It is a free, independent service. We will explain how to refer your complaint, and how long you have to do it, in our final response to you.
· Website: financial-ombudsman.org.uk
· Telephone: 0800 023 4567
Can I take my complaint to court?+–
You can take a claim about your motor finance to court. You may want to get independent legal advice before you do, and time limits apply to court claims.
Going to court does not automatically stop us looking at your complaint, but it can affect how we handle it. If you have started, or are thinking of starting, court action about the same matter, please tell us and we will explain what it means for your complaint.
I have already started court action. Can I still complain to you?+–
Yes — starting court action does not by itself prevent you from complaining to us. What we are able to do may depend on how far the court case has progressed, so please tell us about it when you complain. If a court has already decided your case, we will not be able to look at it again.