Mis-sold car finance and undisclosed commission: where the FCA review stands in 2026

You took out PCP or HP car finance years ago. Now everyone's talking about hidden commission, the FCA, and "you might be owed thousands". The headlines change weekly. Here's where the rules actually stand in 2026 - what's already settled, what's still moving, and what to do regardless of the timing.

What the law says

Two distinct issues sit underneath "the car finance scandal":

1. Discretionary commission arrangements (DCAs).

Until they were banned in January 2021, lenders and brokers (typically dealerships) had arrangements where the broker could set the customer's interest rate within a range - and the higher the rate, the bigger the commission. The customer was rarely told. The FCA found these were unfair and banned the model.

2. Non-DCA undisclosed commission.

Commission paid to brokers that wasn't disclosed - or wasn't disclosed clearly enough - even where the rate was fixed. Whether this is unlawful depends on disclosure standards and is the subject of ongoing case law.

The Court of Appeal's October 2024 decision in Hopcraft v Close Brothers, Wrench v FirstRand Bank, and Johnson v FirstRand Bank widened liability significantly, finding non-disclosure of commission could amount to a breach of fiduciary duty owed by the broker to the consumer. The Supreme Court heard the appeals in April 2025 and a final ruling reshapes the landscape.

The rules around the FCA's redress scheme are still evolving. Rather than rely on dates that may have moved, the most reliable source is the FCA's consumer guidance page: fca.org.uk/consumers/car-finance-complaints. That page is updated when material changes happen.

What you can do regardless

The complaint process exists with or without a redress scheme. You can file a complaint to your lender now if you had:

• A PCP or hire purchase agreement on a car (or motorbike, motorhome, caravan)
• Taken out between April 2007 and November 2024 (the regulated-credit window)
• Where commission was paid to the broker (almost always - it was the standard model)

Lenders have to acknowledge the complaint and assess it. The FCA paused the formal complaints handling clock, then has been progressively unpausing as the rules settle. Filing now gets you in the queue. It costs nothing.

Skip the claims management companies. They charge 25-40% of any payout. Anything they do, you can do yourself in 30 minutes - the lenders are required to give you a free complaints process.

Step-by-step: how to file

1. Find the original finance agreement. Lender name, account number, dates, total credit, APR, monthly repayment, total payable. If you've lost it, the lender must provide a copy under section 77/78 of the Consumer Credit Act 1974 (small fee) or under your data subject access right (free).
2. Check whether commission was paid and disclosed. The agreement and pre-contract information should mention commission. If they don't, or only mention it generically, that's the basis for the complaint.
3. Use our car finance claim tool and hidden commission tool.
4. File the complaint with the lender - in writing, by email or formal complaint form.
5. Wait for the lender's response. They have 8 weeks. If they reject or don't respond, you can escalate to the Financial Ombudsman Service.

Letter snippet

Dear [LENDER],

>

Re: Account [NUMBER] - complaint regarding commission paid on motor finance agreement

>

On [DATE] I entered into a [PCP / HP] agreement with you, financed at [APR]%, for the vehicle [REG / MAKE / MODEL]. I am complaining that commission was paid to the broker ([DEALERSHIP NAME]) without adequate disclosure to me, and/or under a discretionary commission arrangement that incentivised a higher interest rate.

>

I require:

1. Full disclosure of the commission paid to the broker
2. Disclosure of any DCA structure that determined the rate
3. Redress for any loss caused, including the difference between the rate paid and the rate that would have applied without the commission incentive, plus 8% statutory interest

>

Please treat this as a formal complaint under the FCA DISP rules. I expect acknowledgement within 5 business days and a final response within 8 weeks. If unresolved, I will refer the matter to the Financial Ombudsman Service.

>

Yours faithfully,

[NAME] - Account [NUMBER]

If they say no

The Financial Ombudsman Service (FOS) handles the escalation. Free, binding on the lender up to £430,000 (2026 limit), 6-month referral window from the lender's final response.

For latest scheme rules and timing, always check fca.org.uk/consumers/car-finance-complaints. The picture is still evolving and any specific dates I quote may have shifted by the time you read this.

FAQs

My car is on a current PCP - does that matter?

No. You can complain about an active or settled agreement.

I took out the agreement before April 2007 - any chance?

Pre-2007 agreements weren't regulated by the FCA in the same way. Limited routes, but worth checking - the Consumer Credit Act applies, and unfair relationship claims under section 140A can run in court.

The dealership has gone bust. Now what?

The lender remains liable under the FCA rules. Your complaint goes to the lender, not the dealer.

Will using a claims firm get me more money?

No. They use the same complaint route you would, then keep a chunk of the redress. Doing it yourself is the same process for 100% of the payout.

Can I claim if I sold the car years ago?

Yes. The complaint is about the credit agreement, not the vehicle.

The big shift is that the era of "we don't have to tell you about commission" is over. What's still moving is exactly how redress is calculated and paid. File the complaint, get in the queue, and watch the FCA page for updates.