The car finance scandal has taken another major turn. Following months of uncertainty, the Supreme Court has now issued its decision, and the Financial Conduct Authority (FCA) has confirmed plans to move forward with a formal redress scheme.

Here’s what’s happened, what it means for you, and what to do next – whether you’ve already made a complaint or haven’t yet taken action.

The Supreme Court Ruling

The Supreme Court’s recent decision narrowed the scope of the original car finance claims. It found that not every case involving hidden or discretionary commissions automatically makes a lender or dealer liable.

However, the Court agreed that some customers were treated unfairly, and these cases should still qualify for compensation under consumer law.

This means that while not everyone who had car finance between 2007 and 2021 will be due money back, many still could be, especially where the commission arrangements were unfair or not properly explained.

The Regulator’s Response

The FCA has confirmed it intends to introduce a redress scheme so that affected customers can still be compensated fairly and consistently.

It’s expected that the scheme will:

• Cover car finance agreements made between 2007 and 2021.
• Focus on cases where unfair commission or interest arrangements were used.
• Begin processing claims in 2026, once the rules are finalised.

While firms are waiting for the scheme to take shape, complaints remain on hold until at least December 2025.

If You’ve Already Made a Complaint

If you’ve already lodged a complaint with your lender or dealer, you don’t need to do anything right now. Your complaint should stay on record and be reviewed once the FCA’s rules are confirmed.

In the meantime:

• Keep hold of all your paperwork – finance agreements, emails, letters, and statements.
• Make sure the lender has your up-to-date contact details so they can reach you when the scheme launches.
• Don’t withdraw your complaint or accept any offers without checking what your full entitlement could be under the new scheme.

If You Haven’t Complained Yet

If you think you were charged too much interest or weren’t told about a commission on your car finance deal, you will still be covered under the redress scheme

You will be contacted by your lender within six months of the scheme starting and asked if you want to opt in and have your case reviewed.

If you do not receive a letter, for example, because lenders no longer have your details and cannot trace you, you will have a year from the scheme starting to make a claim.

Even though decisions are paused, getting your name on record ensures you won’t miss out when the redress scheme opens.

You can:

• Contact your lender directly using their complaints form or address.
• Keep a copy of everything you send and any replies you receive.
• Include as much detail as possible — when you took out the finance, how much you borrowed, and what the dealer told you about the interest or commission.

Why Some People Might Miss Out

When large-scale redress schemes launch, millions of customers are potentially eligible. Unfortunately, many go unclaimed.

That’s usually because:

• People have moved and the lender doesn’t have current contact details.
• The car dealer or finance broker has closed.
• Records from older agreements are incomplete.
• People assume they won’t qualify and never register.

What role do solicitors and claims management companies play?

The FCA expect an 85% opt-in from clients that lenders will be writing to. However, going back 12 years it’s highly likely that many clients will have moved or changed names. Intermediaries like us already encounter challenges when getting lenders to acknowledge agreements even when we have proof!

The likelihood is that convenience aside, many clients will be using claims management services to help them locate all their agreements so they don’t miss their opportunity to claim with the 12-month window.

How to Make Sure You’re Not Missed

You can reduce the risk of being overlooked by:

• Updating your contact details with any lender or broker you used.
• Keeping records of the vehicles you financed and when.
• Registering your interest or complaint early.
• Watching for updates on the FCA website or the Claim My Loss news section.

In Summary

• The Supreme Court ruling has limited some claims but confirmed that unfair car finance deals can still lead to compensation.
• The FCA’s proposed redress scheme is the next step in making sure affected consumers get what they’re owed.
• If you’ve already complained – hold tight and stay in touch.
• If you haven’t, now’s the time to act, so your case is ready when the scheme opens.

To learn more about how car finance commission claims work, visit our Car Finance Claims page or read our article Redress Schemes – Why They Exist and Why They Keep Coming Back.