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Undisclosed commissions have been central to the Financial Conduct Authority’s (FCA) investigations into motor finance commissions and associated consumer harm. The regulator’s initial investigation, and much of the subsequent coverage, focused on discretionary commission arrangements (DCAs), through which the broker could adjust the interest rate offered to you to earn a higher commission.

Public confidence in financial regulation and institutions is tested in times when systemic misconduct is uncovered across a major consumer market. Motor finance mis-selling is one such test.

The Financial Ombudsman Service (FOS) has confirmed that a new compensatory interest rate will apply to redress payments it directs financial businesses to make in cases it receives on or after 1 January 2026.

For cases received before 1 January 2026, the FOS will generally continue its previous approach of applying 8% simple interest per year.

The Financial Conduct Authority’s (FCA) proposed redress scheme is intended to deliver compensation at scale to consumers affected by commission-related mis-selling. However, while that scale may help many people access compensation more easily, it also means that the scheme must draw boundaries and only cover defined, ‘in scope’ elements.

Many consumers affected by car finance mis-selling will receive compensation offers directly from their lenders under the Financial Conduct Authority’s (FCA) proposed redress scheme. A prompt offer may appear attractive, particularly if you are looking for certainty and speed after hearing for years that you may be eligible for compensation.

Car dealers and other third parties acting as car finance brokers are central to the significant mis-selling identified by the Financial Conduct Authority (FCA) as having occurred between 6 April 2007 and 1 November 2024. However, that raises a natural question: why are the lenders primarily being held accountable for what the FCA estimates will be an £8.2 billion redress bill?

Millions of consumers are gearing up to receive car finance compensation, with payments anticipated to commence from mid-2026, or are considering whether to bring a mis-selling claim.

The Financial Conduct Authority’s (FCA) proposed motor finance consumer redress scheme is intended to make compensation more accessible for people harmed by car finance mis-selling.

The Financial Conduct Authority’s (FCA) proposed car finance redress scheme, which is likely to see compensation payouts begin in mid-2026, is the culmination of years of work in the motor finance space.

Mercedes-Benz is bracing for a £424 million loss relating to motor finance redress payments, according to a report published by The Times on New Year’s Day.