Car finance claim calculator
Enter the details from your finance agreement. You’ll get a rough estimate using the formula the FCA set out for its motor finance redress scheme. It is not what your lender will offer, and the scheme is partly on hold while it’s challenged in court.
- FCA policy statement PS26/3 (March 2026)
- Figures checked 25 October 2026
- You’ll need your finance agreement (amount of credit, APR, term) and any commission figure the lender has told you
Scheme status, 25 October 2026: on 2 July 2026 the Upper Tribunal suspended parts of the scheme while legal challenges are heard. Lenders don’t currently have to pay redress under it. You can still complain to your lender for free.
Your result
Enter your agreement details.
How the FCA formula works
For most eligible agreements the scheme pays the average of two figures:
- The commission the dealer or broker was paid.
- An estimate of the extra interest you paid. This is worked out by cutting your APR by 17% (or 21% for agreements before April 2014) and comparing the interest with what you actually paid.
Interest is then added at the Bank of England base rate plus 1%, at least 3% a year. Where commission was very high (at least half the total cost of credit and 22.5% of the loan) and something else was unfair, the payout is the full commission instead. Agreements with commission of £120 or less (before April 2014) or £150 or less (after) are left out. The FCA expects about one in three payouts to be capped so nobody ends up better off than if they’d been treated fairly.
This calculator follows those steps. It assumes equal monthly payments, which is close for hire purchase but less accurate for PCP agreements with a large final payment. It adds interest at the 3% minimum from the middle of the agreement, so the real figure could be a little higher.
Worked example
£12,000 borrowed over 48 months at 9.9% APR from March 2019, with £750 commission. Total interest is about £2,464.68. At an APR 17% lower (8.22%) it would have been £2,041, so the estimated loss is £423.68. The average of that and the £750 commission is £586.84. With interest at 3% a year the estimate is about £686.33.
What to do next
- Complain directly to your lender. It’s free, and the FCA has a template letter.
- If the lender doesn’t reply within 8 weeks or you disagree, you can go to the Financial Ombudsman Service, also free.
- Never pay a fee up front or give anyone your online banking details to “unlock” compensation.
Questions people ask
Who can claim under the car finance redress scheme?
People who took out motor finance (usually hire purchase or PCP) between 6 April 2007 and 1 November 2024 where the broker was paid commission they weren’t properly told about: a discretionary commission arrangement, a high commission, or a tied arrangement with one lender.
How much compensation will I get for car finance?
The FCA expects an average of around £830 per agreement. For most people the payout is the average of the commission paid and an estimate of the extra interest, plus interest at the Bank of England base rate plus 1% (at least 3% a year).
Is the scheme still going ahead?
Parts of it were suspended by the Upper Tribunal on 2 July 2026 while legal challenges are heard. While the suspension lasts, lenders don’t have to calculate or pay compensation under the scheme. The FCA still advises people to complain to their lender.
Do I need a claims company?
No. You can complain to your lender for free, and the FCA has a template letter. A claims firm or law firm can take over 30% of what you get back.
What is the deadline to claim?
Under the scheme as published, people the lender doesn’t contact can claim until 31 August 2027. The legal challenge could change dates, so check the FCA’s page before relying on this.