FCA motor finance redress scheme (2026)

What it is

The FCA motor finance consumer redress scheme was confirmed on 26 March 2026 in policy statement PS26/3, after consultation CP25/27 in October 2025. It will return around £7.5 billion to customers mis-sold car finance with unfair commission structures between 6 April 2007 and 1 November 2024. Most claims should be settled in 2026 and most by the end of 2027. The scheme covers regulated car finance where a discretionary commission arrangement or similar created an "unfair relationship" under the Consumer Credit Act 1974.

How it applies to gig workers

Thousands of Uber, Bolt, FREE NOW and Amazon Flex drivers bought cars on PCP or hire purchase from 2007 to 2024 to start gig work. If your deal was regulated consumer credit (usually under £25,000 total credit and not fully business-only), using the car for Uber or Flex does not automatically strip you of the scheme's protection. PS25/18 (1 December 2025) confirmed pure leasing agreements are excluded from the redress scheme, but regulated hire purchase, conditional sale and PCP are in scope.

Take a 34 year old in London with a PCP taken in 2018 on a Prius that she put on Uber and later on Amazon Flex. If the deal had a discretionary commission arrangement that pushed up the rate without clear disclosure, she can be in scope. MoneySavingExpert reported average compensation figures around £829 per affected agreement, though individual payouts vary. The scheme works on an opt-in basis for most customers, with firms contacting eligible customers and customers able to complain directly.

The August 2025 Supreme Court decision on motor finance commission, referenced in FCA material, clarified that undisclosed or excessive commission can create an unfair relationship under the Consumer Credit Act 1974 regardless of the customer's status. PCO-style "rent-to-buy" deals from Splend, Otto, Moove or Kojo may also be in scope if they are regulated hire purchase or conditional sale, though the FCA has not named these firms in public policy statements. If a firm is FCA-authorised for consumer credit, the Financial Ombudsman Service remains available for complaints.

This page is general guidance, not financial or legal advice. If you think you have a claim, speak to the firm first, then the Financial Ombudsman Service, or take independent debt advice from StepChange or National Debtline.

What you should do about it

• Dig out every car finance agreement taken between 6 April 2007 and 1 November 2024.
• Check whether the deal is HP, conditional sale, PCP or lease. Leases are excluded.
• Ask the firm in writing for a statement of account and details of commission paid.
• Watch the FCA site for scheme launch and firm-by-firm contact windows.
• Do not pay a claims-management company a percentage to do what the scheme does for free.

Last reviewed

19 April 2026

Internal links this page emits (3-5):

• one-third rule explained
• check your redress eligibility
• redress claim letter template
• PCO finance and your rights
• car being repossessed right now

Primary source used:

• Research/Gap/G4.4-fca-pco-motor-finance.md