Finance Commission Compensation FAQ

1. ABOUT THE MOTOR FINANCE CONSUMER REDRESS SCHEME

Not every motor finance agreement is covered by the Scheme. There are several conditions that must be met before an agreement can be considered for compensation.

If you have received a letter from us confirming that you are not due compensation, it will explain the reason that applies to your agreement. You can find more information about the different reasons in section 3 of these FAQs.

What is the Motor Finance Consumer Redress Scheme?

The Motor Finance Consumer Redress Scheme (the Scheme) is an industry-wide redress scheme introduced by the Financial Conduct Authority (FCA). It is designed to compensate customers who may have paid more for motor finance agreements because, in the FCA’s view, certain commission arrangements between lenders and brokers were not adequately disclosed to customers.

Which agreements are within the scope of the Scheme?

Your motor finance agreement will be within the scope of the Scheme if it meets the following criteria:

Your agreement was a regulated motor finance agreement that was entered into between 6 April 2007 and 1 November 2024 inclusive (this includes both conditional Sale and Personal Contract Purchase (PCP) agreements);
You were habitually resident in the UK at the time you entered into your agreement; and
There were arrangements relating to commission in place between us and the credit broker in connection with the entering into of your agreement.

There are two separate schemes depending on when your agreement started:

Scheme 1 covers motor finance agreements that were entered into between 6 April 2007 and 31 March 2014 (inclusive).
Scheme 2 covers motor finance agreements that were entered into between 1 April 2014 and 1 November 2024 (inclusive).

However, several organisations are challenging the Scheme through the courts. Because of this, it may take longer than usual to resolve your complaint, and you may not receive an outcome until next year or beyond. Once we know more about the timescales, we will update our website with more information.

If you have raised a complaint and it is clear at this stage that you are not due any redress under the Scheme for reasons that will not be affected by the legal challenges, we will contact you to let you know:

by 18 November 2026, if your agreement falls into Scheme 2 and you complained by 30 June 2026; and
by 18 January 2027, if your agreement falls into Scheme 1 and you complained by 31 August 2026.

If you complain after these dates, and it is clear at this stage that you are not owed redress under the Scheme for reasons that will not be affected by the legal challenges, we will write to you within 3 months and 7 weeks of receiving your complaint. For example, if you complain on 19 November, we will contact you by 9 April.

Who may be eligible for redress under the Scheme?

Your agreement may qualify for redress under the Scheme if it is within the scope of the Scheme and meets all the following conditions:

Commission was payable by the lender to a credit broker in connection with the entering into of your specific agreement.
The FOS has now already considered and decided a complaint from you about the matters covered by the Scheme. If the FOS is currently considering your complaint, it will usually continue to deal with it instead of us reviewing it under the Scheme, unless you are told otherwise.
The courts have not already made a decision about the merits of a claim relating to your agreement concerning the same matters covered by the Scheme.
You have not already accepted an offer for redress from us or the credit broker:
for a claim directly arising out of a motor finance agreement within the subject matter of the Scheme, or
in full and final settlement of any claims relating to your motor finance agreement.
You did not cancel or withdraw from your agreement using a legal or contractual right to do so.
You did not cancel or withdraw from your agreement during the initial cancellation or cooling-off period.
The amount you borrowed under your agreement was not unusually high compared with other motor finance loans taken out in the same year. An agreement will generally meet this requirement if the amount borrowed was no higher than 99.5% of other motor finance loans taken out in that year. That limit does not apply if the vehicle was constructed or adapted to enable a person with disability to travel in the vehicle as a driver or a passenger.
If you brought a claim on 25 March 2026 in relation to the subject matter of the Scheme on the basis that your agreement was unfair, the claim would not be considered out of time by the courts.
If your agreement was entered into between 1 April 2007 and 5 April 2008, the amount borrowed did not exceed £25,000.

Your agreement must meet all the above conditions to be reviewed under the Scheme. If it does not, you will not be eligible for redress under the Scheme. You can still make a complaint about your motor finance agreement by contacting our Commissions Complaints team at [email protected].

Are any agreements excluded from receiving redress under the Scheme?

Yes. Even if an agreement satisfies the criteria to be a scheme case, redress won’t be paid under the Scheme if:

The agreement did not contain at least one of a discretionary commission arrangement (DCA), high commission arrangement, or tied arrangement.
The agreement did contain at least one of a DCA, high commission arrangement, or tied arrangement, but this was adequately disclosed at the time.
The commission paid to the broker in connection with the specific motor finance agreement was (a) £120 or less, for agreements entered into before 1 April 2014 or (b) £150 or less, for agreements entered into on or after 1 April 2014.
The agreement had a 0% APR.
The interest rate was the lowest in the range of interest rates that could have been chosen by the broker under the DCA.
The agreement did not contain a DCA and it would not have been possible (in relation to the same transaction) to obtain a lower APR from another lender with whom the broker had a referral arrangement.
The agreement was subject only to an inadequately disclosed tied arrangement, but the dealer did not operate the tied arrangement in practice.
The agreement was subject only to an inadequately disclosed tied arrangement, but there were visible links between the lender, broker and manufacturer. For example, the car manufacturer provided the finance through a franchised dealer with similar branding.
The agreement did not contain a very high commission arrangement and the APR of the agreement was less than or equal to the 5^th percentile of APRs for agreements in the same year (excluding 0% APR agreements).

Please also see the question above “Who is eligible for the Scheme?”, which outlines situations in which your agreement will not be eligible for review under the Scheme.

What is a Discretionary Commission Arrangement (DCA)?

A discretionary commission arrangement is an arrangement between the lender and the broker where the broker could choose or negotiate the interest rate (or a related fee) on your motor finance agreement and the amount of commission the broker received could increase or decrease depending on the interest rate (or fee) charged to you.

What is a high commission arrangement?

A high commission arrangement is where the commission was:

at least 39% of the total charge for credit (i.e. the total amount you paid under your motor finance agreement in interest payments and other fees), and
at least 10% of the amount you borrowed.

The Financial Conduct Authority (FCA) has also defined a very high commission arrangement as being:

at least 50% of the total charge for credit, and
at least 22.5% of the amount you borrowed

These thresholds were set by the FCA.

What is a tied arrangement?

A tied arrangement is a contractual arrangement where the broker was required either to introduce customers only to a particular lender, or to give that lender the first opportunity to offer finance before approaching another lender.

Which motor vehicles does the Scheme cover?

The Financial Conduct Authority (FCA) has defined motor vehicles as mechanically propelled vehicles intended or adapted for use on public roads. This means that some vehicles aren’t included. For example, towed caravans or jet skis are not included in the Scheme.

I live abroad, am I still eligible to claim?

You may still be eligible if you were a UK resident at the time of entering into the agreement, even if you no longer live in the UK. You can make a complaint about your motor finance agreement by contacting our Commissions Complaints team at [email protected].

Is the Scheme applicable to businesses?

Generally, no. The Scheme doesn’t cover agreements involving:

limited companies
limited liability partnerships
partnerships consisting of more than 3 people
agreements with a credit value of over £25,000 for business purposes.

However, you may be eligible for the Scheme if:

you are a sole trader, or a partnership with 2 or 3 partners where at least one partner is an individual;
you took out a motor finance loan for business purposes; and
the amount you borrowed was £25,000 or less.

You can check your original loan agreement to confirm the amount you borrowed.

What happens if my case is already going through court?

If the merits of a case in relation to your agreement concerning the same matters covered by the Scheme have already been decided by a court, your agreement won’t be eligible to be part of the Scheme.

If your case is ongoing and the court hasn’t made a decision, you and your legal representative will need to decide whether you want to continue with the legal proceedings.

If you decide not to carry on with your case, please notify us via email or by phone and we will assess your claim under the Scheme. You may have to pay certain legal fees if you choose to withdraw your claim. Please ask your legal representative for more information about any fees that may be payable.

If you decide to continue with the legal proceedings, we will write to you separately.

What happens if my complaint already has been or is being reviewed by the Financial Ombudsman Service (FOS)?

If the FOS has already completed its review of your complaint about the matters covered by the Scheme, we will not normally review your agreement again under the Scheme - whether or not the FOS awarded redress. If the FOS decided it could not consider your complaint because it was outside its jurisdiction, we may still be able to assess it under the Scheme.

If the FOS’ review of your complaint is still ongoing, you will need to decide whether to withdraw your complaint.

If your complaint was referred to the FOS but is withdrawn before its review concludes, we may be able to assess your complaint under the Scheme.

What if the commission on my agreement is low?

You will not be owed redress under the Scheme if the commission in connection with your specific motor finance agreement was:

£120 or less for agreements entered into before 1 April 2014, or
£150 or less for agreements entered into on or after that date.

The Financial Conduct Authority (FCA) considers commission at or below this amount too small to be likely to have affected a customer’s choice of finance or the broker’s actions.

What if my agreement had a 0% APR?

If your agreement had a 0% APR, you will not be eligible for redress under the Scheme. This is because the Financial Conduct Authority (FCA) considers that a customer who paid no interest was not disadvantaged by an inadequately disclosed commission arrangement.

I have a personal contract hire (PCH) or leasing agreement, is my complaint eligible to be reviewed under the Scheme?

No, personal contract hire (PCH) and leasing agreements do not fall within the scope of the Scheme. The rules that govern unfair relationships do not apply to PCH or leasing agreements, and so these agreements fall outside of the scope of the Scheme. You can still make a complaint about your motor finance agreement by contacting our Commissions Complaints team at [email protected].

2. Who will be contacted

Who will be contacted to take part in the Scheme?

We will only get in touch with:

customers who have previously complained (in which case we will provide you with your provisional redress decision or redress determination as applicable);
customers who have not previously complained who may be eligible for redress under the Scheme (in which case we will contact you to invite you to take part in the Scheme); or
customers who have not previously complained and may be eligible to take part in the Scheme. We will contact these customers to explain the options available to them. Being contacted about the Scheme does not mean the same claim could necessarily be brought through the courts, where different rules and time limits may apply.

Please be aware that certain parts of the Scheme are suspended as a result of the legal challenges to the Scheme. While these parts of the Scheme are suspended, we are only allowed to get in touch with certain customers who have previously complained and who, for various reasons, are not owed redress under the Scheme. We are waiting for further information as to when we are allowed to contact other customers in respect of the Scheme.

Even if you haven't heard from us, you can still contact us by phone, email or use the Commission Redress Portal to make a complaint until 31 August 2027.

If you contact us after 31 August 2027, we will check whether you should have been contacted and invited to take part in the Scheme. If we should have contacted you but did not, or there are other exceptional circumstances we will still consider your claim.

How and when will I be contacted?

Customers not due redress

If you have raised a complaint and it is clear at this stage that you are not owed redress under the Scheme for reasons that will not be affected by the legal challenges, we will write to you by:

18 November 2026, if you raised your complaint by 30 June 2026, and your complaint relates to an agreement entered into between 1 April 2014 and 1 November 2024 (inclusive).
18 January 2027, if you raised your complaint by 31 August 2026 and your complaint relates to an agreement entered into between 6 April 2007 and 31 March 2014 (inclusive).

Customers due redress

Several organisations are challenging the Scheme through the courts. Because of this, it may take longer than usual to resolve your complaint, and you may not receive an outcome until next year or beyond. Once we know more about the timescales, we will update our website with more information.

How can I be sure communications are genuine?

Genuine communications about the Scheme will include a unique reference number and key agreement details about your agreement, such as the agreement number.

If you still have concerns, you can check that communications are real by:

Contacting us using the details published on our contact page.

We will never ask for full passwords or bank details by email or text.

What if I find it hard to understand or communicate in English?

If English isn’t your first language, or you find it difficult to understand or communicate in English, you can use translators or translation tools to help.

If you need to speak to us by phone, you can ask someone to help you.

Our customer support team will also be happy to help. If you need extra support, please contact us at [email protected].

How will you support customers with additional needs throughout the claim process?

The Scheme is designed to be accessible for all customers, including those with additional needs.

Our customer support team can help with additional needs and specific requirements throughout the claims process. If you need extra support, please contact us at [email protected].

For example, we can provide accessible letters and communications, which may include larger text, braille or coloured overlays.

I am finding the process confusing, can someone else such as a family member assist me with my complaint?

Yes, a family member or another third party can help you navigate the Scheme process. If you let us know by email or telephone, we can add them as an authorised person on your complaint and we can speak to them on your behalf.

Our customer support team can also help throughout the claims process. If you need extra support, please contact us at [email protected].

I raised my claim with a Claims Management Company or a law firm, will I hear directly from you?

Usually, we’ll communicate with the Claims Management Company or law firm you have appointed to act on your behalf.

However, there may be circumstances where we need to contact you directly. For example, if more than one Claims Management Company or law firm appears to be acting for you, we may contact you to confirm who you would like to deal with your claim, or whether you would prefer to deal with us directly.

If you decide that you no longer want a Claims Management Company or law firm to act for you, you should check the terms of your agreement with them before making your decision. You may have to pay termination fees or other charges if you end that agreement.

3. Customers not due redress

How and when will I be contacted?

If you have raised a complaint and it is clear at this stage that you are not owed redress under the Scheme for reasons that will not be affected by the legal challenges, we will write to you by:

18 November 2026, if you raised your complaint by 30 June 2026, and your complaint relates to an agreement entered into between 1 April 2014 and 1 November 2024 (inclusive).
18 January 2027, if you raised your complaint by 31 August 2026 and your complaint relates to an agreement entered into between 6 April 2007 and 31 March 2014 (inclusive).

While parts of the Scheme are suspended, we are only allowed to get in touch with certain customers who have previously complained and who, for various reasons, are not owed redress under the Scheme. If you are not one of these customers, we are waiting for further information as to when we are allowed to contact you in respect of the Scheme.

I raised more than one complaint. What is happening with my other complaint(s)?

If you’ve submitted more than one complaint and we have not yet contacted you about some of them, please be assured that we will be in touch as soon as possible.

There are ongoing legal challenges to the Scheme that affect which complaints we are permitted to review and resolve at this time. So, it may take longer than usual to give you an outcome for your other complaint(s), and you may not receive a final response until next year or beyond.

We'll continue to monitor developments in the legal challenges. Once we know more, we’ll put an update on our websites. Links to our websites can be found here.

What information will be provided in the letter or communication sent to me?

The information provided will depend on the reason why you are not due redress under the Scheme.

If your agreement does not satisfy the criteria required to be a a Scheme case, the letter will:

Confirm the final outcome of your complaint.
Confirm you are not due any redress under the Scheme.
Explain the reasons for the decision.
Clearly explain your right to refer your complaint to the FOS if you disagree with the decision.

You will also receive a final response letter from us that sets out our determination of whether you are owed redress outside of the scope of the Scheme.

If your agreement is had a 0% APR or the commission paid to the broker in respect of your specific agreement was below the relevant threshold (£120 for agreements entered into between 6 April 2007 and 31 March 2014 (inclusive) or £150 for agreements entered into between 1 April 2014 and 1 November 2024 (inclusive)), the letter will:

Confirm the outcome of your complaint.
Confirm you are not due any redress under the Scheme.
Explain the reasons for the decision.
Explain how you can contact us if you disagree with the determination or have any questions. If you do not respond to our first communication within 1 month, we will send you a further letter confirming our decision and explaining your right to refer your complaint to the FOS if you disagree with the decision.

What does “Non-Scheme (other reason)” mean?

Non-Scheme (other reason) means that we cannot review your agreement under the Scheme for one of the reasons listed below:

A court or tribunal has already made a decision on the merits of a claim in relation to your agreement concerning the same matters covered by the Scheme
Your agreement was cancelled or withdrawn within the initial cancellation or cooling off period
The FOS has already considered the merits of your complaint
There was no commission payable to the broker
Your agreement is classified as a high-value agreement.

My case is not a Scheme case because a court or tribunal has already made a decision on the merits of a claim in relation to my agreement about the same matters covered by the Scheme?

The Scheme does not apply if a court or tribunal has already decided the merits of such a claim. This is because the complaint has effectively been resolved and the position is consistent with the FCA’s objective of providing certainty and finality to firms and customers.

This means we cannot assess the same claim again under the Scheme.

Why is my agreement not covered by the Scheme because it was cancelled or withdrawn?

The FCA's rules exclude agreements that were cancelled or withdrawn using a legal right or a right provided under the agreement, within the initial cancellation or cooling-off period.

The length of this period depends on the type of agreement and the rules that applied when it was taken out. For example, some agreements had a 14-day withdrawal period, while different cancellation periods could apply to other agreements.

Our records show that your agreement was cancelled or withdrawn within the relevant period. This means your agreement is not covered by the Scheme and no compensation is payable under it.

This is different from paying off your finance early. An agreement that was repaid or settled early is not automatically excluded from the Scheme.

If you believe your agreement was not cancelled or withdrawn, or that we have made a mistake, please contact us using the details in your letter. We can explain our decision and review any information you provide.

My case is not a Scheme case because the Financial Ombudsman Service ( FOS) has already considered a complaint about the commission arrangements relating to my motor finance agreement?

As the FOS has already reviewed the merits of your complaint, your agreement cannot be reconsidered under the Scheme.

This is because the FOS will have carried out its own independent assessment of the circumstances of your complaint and reached a decision based on the available evidence. As part of that process, you would also have had the opportunity to challenge or seek a review of the FOS's initial assessment if you disagreed with them.

My case is not a Scheme case because no commission was payable to the credit broker in connection with my motor finance agreement?

The Scheme only applies where there was an arrangement under which commission was payable to a credit broker in connection with your specific motor finance agreement. The purpose of the Scheme is to redress customers where they may have suffered harm due to the inadequate disclosure of commission arrangements. As no commission was payable in relation to your motor finance agreement, no harm was suffered. So, your motor finance agreement isn’t covered under the Scheme and is not eligible for redress.

My case is not a Scheme case because my motor finance agreement is classified as a high-value agreement?

Your agreement is not covered by the Scheme because the amount you borrowed was unusually high compared with other motor finance agreements taken out in the same year.

The FCA has set a maximum loan amount for each year covered by the Scheme. Agreements above that amount are generally excluded because the Scheme is designed to deal with typical motor finance agreements.

There is an exception for vehicles built or adapted to enable a person with a disability to travel in the vehicle as a driver or passenger.

Our records show that the amount borrowed under your agreement was above the relevant limit. This means you are not entitled to compensation under the Scheme.

However, this does not prevent you from having your complaint considered under the FCA's standard complaints rules. If you have already complained, your final response letter explains our decision and your right to refer your complaint to the Financial Ombudsman Service.

The Scheme sets out the thresholds used for each year.

My motor finance agreement had 0% APR so I am not due redress?

Your motor finance agreement had a 0% APR, and so it is not eligible for redress under the Scheme. The Financial Conduct Authority (FCA) considers that customers paying no interest would not have been disadvantaged by undisclosed commission arrangements.

What does 0% APR mean?

0% APR means 0% Annual Percentage Rate. This means you didn’t pay any interest or fees on the amount that you borrowed.

My motor finance agreement had a commission amount below the applicable commission threshold so I am not due redress?

Your motor finance agreement fell below the threshold and so you are not eligible for redress under the Scheme. The Financial Conduct Authority (FCA) considers commission at or below this amount too small to be likely to have affected a customer’s choice of finance or the broker’s actions.

How do I accept the decision?

If you are satisfied with our decision, you don’t need to do anything. However, if you want to let us know that you accept our decision, please let us know by phone or email. We will then send you an email confirming that we have received and recorded your acceptance.

Please be aware that by accepting the decision, your acceptance will be in full and final settlement of all claims against Hyundai Capital UK Ltd relating to the subject matter of the Scheme in relation to your case, including any legal claims.

What does full and final settlement mean?

Accepting our decision in full and final settlement means that you agree to bring your claim about the commission arrangements covered by the Scheme for your motor finance agreement to an end.

If you choose to accept the decision, this will be in full and final settlement of all claims against Hyundai Capital UK Ltd relating to the subject matter of the Scheme in relation to your case, including any legal claims.

This means that your claim with Hyundai Capital UK Ltd will be settled. You will not be able to pursue any further claims against Hyundai Capital UK Ltd (via the Scheme or any alternative route, including any legal claims or with the Financial Ombudsman Service) about the subject matter of the Scheme in relation to your motor finance agreement.

You do not need to respond if you are satisfied with our decision. Not responding does not mean that you have accepted it.

You should only tell us that you accept our decision if you are satisfied with the outcome and do not want to take the matter further. If you are unsure about the consequences of accepting, you may wish to seek independent advice first.

What if I disagree with your determination that my case is not due any redress as I had 0% APR or a commission amount below the applicable commission threshold?

If your motor finance agreement is determined to have had a 0% APR or a commission below the applicable commission threshold, you have the right to raise a formal objection to our provisional redress decision directly with us. You can do this by contacting us by email at [email protected].

Within seven days of you telling us you wish to raise an objection, we will send you an acknowledgement of your objection. You will have one month from the date of our acknowledgment to provide us with further information and any evidence that supports your view.

Once we receive any further information you provide, we will review that information and investigate. We will then issue a response within the timescales set by the FCA, which is typically within two months of receiving your formal objection.

Having considered your further information, we may either (a) uphold your objection or (b) not uphold your objection.

If you do not wish to raise an objection, you can also decline your outcome by choosing to no longer have your case reviewed under the Scheme, but this means we will close your claim relating to your motor finance agreement and we will not re-review your outcome decision. You will not be able to refer your claim to the FOS if you decline your outcome before you’ve received a final redress determination.

What happens if you uphold my objection?

If we uphold your objection, we will write to confirm our decision, explain the reasons for it, and outline any next steps.

As certain parts of the Scheme are suspended as a result of the legal challenges to the Scheme, if we uphold your objection, your case will be suspended until the outcome of the legal challenges.

What happens if you do not uphold my objection?

If we do not uphold your objection, we will write to confirm our decision and explain the reasons for it. We will also provide information about your right to refer your case to the FOS. The FOS will independently review your case and determine whether the Scheme’s rules were correctly applied. You have six months from the date we send our outcome letter to refer it to the FOS.

What if I disagree with your determination that my case is not due any redress as my agreement is not covered by the Scheme?

If your agreement is not covered by the Scheme, the letter we send to you includes both our redress determination under the Scheme and our final response to your complaint. You do not have the right to raise a formal objection with us under the Scheme.

If in our final response to your complaint, we determine that your case is not due any redress and you disagree, you have the right to refer your complaint to the FOS, free of charge – but you must do so within six months of the date of our final response letter.

If you do not refer your complaint in time, the FOS will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the FOS believes that the delay was as a result of exceptional circumstances.

If the FOS does consider your complaint, it will decide by reference to what is, in its opinion, fair and reasonable in all the circumstances of your case.

You can contact us to let us know you decline your outcome, but you don’t need to. You can still complain directly to the FOS.

Why can I not object to my outcome?

Under the Scheme rules, you can’t object to our decision if your agreement isn’t covered by the Scheme.

We’ve provided our full and final response to your complaint along with our redress determination under the Scheme.

If you disagree with our response to your complaint, you can refer your complaint to the FOS.

What is the difference between declining and objecting to my outcome?

If you object to your outcome, you’re asking us to look at your complaint again. We’ll ask you to provide any further information or supporting evidence. We’ll then review this information and reconsider your complaint.

If you decline your outcome by choosing to no longer have your case reviewed under the Scheme, we’ll close the complaint relating to your agreement and won’t review it any further.

What is the Financial Ombudsman Service (FOS)?

The FOS is an independent service in the UK that acts as a neutral third party. Its job is to resolve disputes between customers and financial services companies. The FOS is free to use for customers.

If you're unhappy with our final outcome or final response about your claim, you have the right to complain to the FOS. The FOS will independently review your case. You have six months from the date of our final decision to refer it to the FOS.

4. COMPLAINTS

How can I raise a complaint regarding the service I have received?

We are committed to treating customers fairly and providing a positive experience throughout the Scheme. If you’re unhappy with any part of the claim process, please let us know so we can try to put things right.

You can contact our Motor Finance Commissions Redress Complaints team at [email protected]

They will discuss and investigate your complaint.

What steps can I take if I remain dissatisfied with your resolution to my complaint regarding the service I have received?

If you’re still unhappy after receiving our final response, you can refer your complaint regarding the service you have received to the FOS, which is independent and free to use for customers.

The FOS is an independent service in the UK that is responsible for resolving disputes between consumers and financial services providers.