Expert Consumer Lawyers – Helping you challenge unfair finance agreements
We help UK clients pursue refunds for mis‑sold finance agreements through a No‑Win, No‑Fee arrangement. Contact us to find out whether your agreement may be unfair.
Important Update
October 2025
Current Position
Following the Supreme Court’s ruling on 1 August 2025, the Financial Conduct Authority (FCA) has now released its consultation paper — CP25/27 – Motor Finance Consumer Redress Scheme.
This paper sets out how a potential nationwide compensation scheme could operate for customers who took out car-finance agreements involving undisclosed Discretionary Commission Arrangements (DCAs).
While the FCA consultation is open, most new and ongoing complaint investigations remain temporarily paused.
Timeline and Next Steps
- The FCA’s consultation runs until mid-November 2025.
- A final decision on the scheme’s structure is expected in early 2026, with any payments beginning later that year.
- Lenders’ deadlines to issue final complaint responses have been provisionally extended to 31 July 2026.
- Consumers who already complained to their lender or the Financial Ombudsman Service (FOS) remain protected under the current pause — they will not lose their place in line.
CA Consultation – Key Points
Under the current proposal:
- The scheme would cover regulated hire-purchase and PCP agreements entered between 6 April 2007 and 1 November 2024.
- Redress would focus on cases where commission linked to DCAs was not properly disclosed to the customer.
- Typical compensation is projected to average around £700 per agreement, although some may receive more or less depending on their specific loan terms and commission level.
- The FCA is considering repayment of the commission and related interest as the likely remedy.
- Customers will be able to access the scheme directly through their lender or FOS at no cost, without using a solicitor or claims-management company.
All figures and timeframes are provisional and may change once the FCA publishes its final rules in 2026.
Supreme Court Clarification
The Supreme Court confirmed that:
- Fixed-fee commission (where the dealer’s commission is set and not linked to the customer’s interest rate) does not generally give grounds for redress.
- Discretionary Commission Arrangements (DCAs), where a dealer could adjust the customer’s interest rate to increase their own commission, can still create an “unfair relationship” under section 140A of the Consumer Credit Act 1974.
- The ruling did not award automatic compensation — it provides the legal foundation for the FCA’s proposed redress process.
What This Means for Our Clients
Our legal teams continue to progress all existing client matters already lodged.
For anyone who has not yet submitted a complaint, making an early complaint ensures you are included when the FCA’s scheme goes live.
We remain ready to review each case once the FCA confirms the final redress process in 2026.
Our Fees – Simple & Transparent
We act on a No Win, No Fee basis.
If your case succeeds, our fee is up to 36% (including VAT).
Example: If you receive £1,000 in compensation, our fee would be £360, leaving you £640.
Your Authorised Law Firm for Consumer law
At Locksley Law, We help clients challenge unfair car finance practices and pursue compensation where they are eligible. Under the Supreme Court ruling of 1 August 2025, only agreements involving Discretionary Commission Arrangements (DCAs) may form the basis of a valid claim, while fixed-fee commission agreements are excluded.
Our role is to simplify the process, explain your options clearly, and provide professional representation you can rely on. We operate transparently under the highest regulatory standards, legal fees capped at 36% including VAT if your claim is successful.
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Our Comprehensive Range of Legal Expertise
Discretionary Commission Claims
We review car‑finance agreements for evidence of unfair practices associated with Discretionary Commission Arrangements (DCAs). A DCA occurs where a broker can adjust a customer’s interest rate to receive a higher commission from the lender. The Financial Conduct Authority prohibited DCAs in 2021.
Other Finance-Related Concerns
Following the Supreme Court ruling of 1 August 2025, while non-discretionary (fixed-fee) commission claims are more limited in certain contexts, borrowers may still pursue case-specific ‘unfair relationship’ claims under the Consumer Credit Act where factors such as high commission or inadequate disclosure are relevant. These issues are not part of the FCA’s redress process and may not result in compensation. In some situations, they can only be challenged through separate legal routes and outcomes are uncertain. If you believe you were misled about your finance agreement, our team can review the documents and advise whether there may be grounds for further action.
Important: Claims relating to balloon payments, hidden charges or other non‑DCA issues are not covered by the FCA’s redress scheme. Eligibility depends on individual circumstances and may require separate legal action. Outcomes cannot be guaranteed. Please refer to our full disclaimer below.
Mis-Sold PCP & HP Claims
Reclaim hidden commissions and unfair costs from your car finance deal
Hidden Commission Refunds
Compensation for undisclosed payments to brokers and lenders
Balloon Payment Refunds
Get refunds for excessive or mis-sold balloon payment terms
Find Out If You Have a Claim – Contact Us Today!
If you believe your car finance agreement involved unfair charges or hidden commissions, our team is here to help. We’ll review your case, explain your options clearly, and guide you every step of the way.
Use our free check today to see if you are eligible for a claim.
Please note that our free check is an initial assessment only and does not guarantee that your claim will succeed. Eligibility depends on your individual circumstances and the terms of your agreement.
