Car finance compensation: where things stand in 2026
Hidden commissions on car finance could mean compensation for millions of drivers. Here's a plain-English update — and why you don't need a claims firm.
By Money Guide editorial team
Published:
The car finance story centres on 'discretionary commission arrangements' (DCAs), which let dealers raise a customer's interest rate to earn more commission without disclosing it. The FCA banned DCAs in January 2021, so agreements taken out before 28 January 2021 are the focus of potential redress.
After courts examined whether customers were told enough about commission, a Supreme Court judgment in 2025 clarified the legal position on disclosure. Following that, the FCA confirmed it would set up an industry-wide redress scheme so eligible customers can be compensated through a consistent, free process rather than the courts.
For drivers, the key points are simple: you do not need a claims management company (they take a cut of any payout); you can complain to your lender for free; and where the redress scheme applies it is designed to assess eligible customers without you paying anyone. The detail is still being finalised, so check fca.org.uk for the latest position.