Had a car on finance between 2007 and 2024? You may be entitled to redress
The Financial Conduct Authority has introduced a mandatory redress scheme covering PCP and HP car finance agreements. Fernstone Law is a regulated law firm, not a claims management company, and we see every motor finance claim through to resolution.
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New motor finance claims are started with The Legal Claim Company, our own motor finance brand, wholly owned and run by Fernstone Law. You start your claim online.
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- 2007-2024
- agreements the FCA scheme can cover
- 20+ years
- handling consumer claims
Understanding the FCA motor finance redress scheme
If you had a car on PCP or HP finance between 2007 and 2024, you may have paid more than you should have because of how commission was arranged between your lender and the dealership, often without this being properly explained to you.
The Financial Conduct Authority has introduced a mandatory redress scheme requiring lenders to review and, where appropriate, compensate affected customers. It's a genuinely complex area, several legal challenges are still working through the Upper Tribunal, and timings are still being finalised. We'll keep this page updated as the position develops, and we'd rather explain that clearly than promise a date we can't stand behind.
You may be eligible if:
- You had a PCP or HP car finance agreement any time between 2007 and 2024.
- You weren't told how the dealer's commission was structured, or whether it affected your interest rate.
- You're unsure whether your agreement is affected and want a straight answer rather than guessing.
You don't need to know the technical details of your finance agreement to get started. Give us a few details and we'll help you work out where you stand.
In short, the FCA found that widespread commission arrangements between lenders and dealerships led to many customers paying more interest than they should have, often without proper disclosure. The regulator has since introduced a mandatory scheme requiring lenders to proactively review historic agreements and pay redress where appropriate.
Four separate legal challenges are currently before the Upper Tribunal, which is affecting the timeline for when payments will actually reach existing complainants. First payments to people who've already complained are currently expected from around February or March 2027, though this depends on how those challenges are resolved.
Read the full explainerWhy use a regulated law firm rather than a claims company
Motor finance claims attract a lot of attention from claims management companies and lead-generation services. Fernstone Law is different in a way that matters.
- We're regulated by the Solicitors Regulation Authority, not simply registered as a claims business.
- We see your claim through to resolution and we never sell your details on.
- You deal with the same firm and, in most cases, the same person throughout.
- We're straight with you about timelines and uncertainty rather than promising more than we can deliver.
Explore motor finance claims
- The FCA redress scheme explainedWhat the regulator found, what lenders now have to do, and where the scheme has got to.
- Check your eligibilityThe agreements and circumstances the scheme covers, and how to tell if yours is one of them.
- Fees and fundingWhat a claim costs, what you can do yourself for free, and what we charge if it succeeds.
- Timeline and updatesWhere the Upper Tribunal challenges have got to, and what that means for payment dates.
Three steps, and a straight answer at the end of them
We aim to respond to every enquiry within one business day.
- 01
Tell us who you are
Share your name, date of birth, contact details and address. You don't need your old finance agreement.
- 02
We check your position
Our team reviews what you've told us against the redress scheme criteria and identifies whether you're likely to have a valid claim.
- 03
You hear back within one business day
We'll contact you with a clear next step, including realistic timing given the ongoing Upper Tribunal challenges.
What a claim costs
You don't need to use a solicitor or claims management company to pursue a motor finance complaint. You can contact your lender directly free of charge.
Where we offer a no win, no fee arrangement, you pay nothing if your claim is unsuccessful. If your claim succeeds without court proceedings, our fee is a percentage of the redress you receive. The SRA caps that fee on a sliding scale: 30% of redress up to £1,499, 28% from £1,500 to £9,999, 25% from £10,000 to £24,999, 20% from £25,000 to £49,999, and 15% above £50,000, in each case plus VAT. Every band also carries a cash cap, from £420 to £10,000, and you pay whichever of the two is lower. If we issue proceedings then the fee will be 40% plus VAT.
A cancellation fee may apply if you withdraw outside the 14 day cooling off period. Full details will be provided before you sign anything.
Frequently asked questions
What is a discretionary commission arrangement (DCA)?
It's a commission structure that let dealerships set the interest rate on your finance agreement within a range, earning more commission the higher the rate they set, often without you being told.
Do I need to have already complained to my lender?
No, but if you have, that may affect the process. Tell us either way and we'll advise on the best route.
How long will my claim take?
This depends heavily on the outcome of the current Upper Tribunal challenges. We'll always give you our current understanding of timing rather than a fixed promise.
Do I need to use a claims management company?
No. You don't need to use a solicitor or claims management company to pursue a motor finance complaint. You can contact your lender directly free of charge. Some people choose to have a regulated solicitor manage the process on their behalf instead.
What if I don't remember all the details of my old finance agreement?
That's normal. Tell us what you do remember, the lender name or approximate dates, and we'll help fill in the rest.
Not sure if you're affected? That's exactly what we're here to help with
Give us a few details and we'll check where you stand. We'll give you a straight answer.
Motor finance claims, explained
Straight answers to common motor finance claim questions, from discretionary commission arrangements to what happens if your lender has gone out of business.