The Sun- FCA's redress scheme for car finance victims was launched in March but has been partially suspended due to legal challenges.
- A survey commissioned by the FCA in June revealed that 27% of car finance customers lack confidence to make a complaint without using a claims management company (CMC) or law firm.
- The FCA's advertising campaign to assist car finance customers runs from July 27 to September 6, 2026.
- £7.5 billion is due to be paid out to over 12 million victims of car finance mis-selling.
- Drivers who took out car finance agreements between 2007 and 2024 may have been overcharged due to discretionary commission arrangements.
- Sheree Howard, executive director at the FCA, stated that many people who may be owed compensation aren’t sure where to start or don’t realize they don’t have to pay someone to make a complaint.
- The FCA found that more than 80% of those surveyed said the free template letter would make them more confident complaining directly to their lender.
- In June, the FCA had 170 misleading car finance claims adverts removed or amended by CMCs, bringing the total up to 1,200 since January 2024.
The Financial Conduct Authority (FCA) has alerted over 12 million car finance customers about potential compensation claims, with a total of £7.5 billion set to be paid out. Many customers, particularly those who took out agreements between 2007 and 2024, may have been overcharged due to discretionary commission arrangements where dealers inflated interest rates.67
Despite the availability of free tools, 27% of customers lack confidence in making complaints without the help of claims management companies (CMCs). Sheree Howard, executive director at the FCA, stated, “Many people who may be owed compensation aren’t sure where to start or don’t realise they don’t have to pay someone to make a complaint.”8
A recent FCA survey revealed that while 59% of customers have made or are considering a claim, 23% remain unsure of their options. Over 80% of respondents indicated that a free template letter would boost their confidence in approaching lenders directly.23
In response, the FCA has initiated a £2 million advertising campaign running from July 27 to September 6, 2026, to encourage customers to utilize the free resources available. The FCA also reported that it has removed or amended 170 misleading car finance claims adverts from CMCs this year, totaling 1,200 since January 2024. A redress scheme launched in March has faced legal challenges, further complicating the compensation process for affected customers.14510
“The FCA's advertising campaign aims to boost confidence among car finance customers, running from July 27 to September 6, 2026. A survey revealed that while 59% are considering a claim, 27% lack confidence to proceed without a claims management company.”
The Independent
