Answers to common questions about motor finance commission claims
You may have a claim if you took out a vehicle finance agreement at any time from 2007 onwards and the car dealership did not properly disclose that it received a commission from the lender for arranging your finance.
In many cases, consumers were not told about these commission arrangements at all, or were not given enough information to understand how the commission worked or how it could affect the cost of their finance. This lack of transparency is now under regulatory scrutiny.
The Financial Conduct Authority has reviewed tens of millions of motor finance agreements and concluded that commission payments were widespread across the industry. As a result, many agreements may have been mis-sold.
The FCA has currently required lenders to pause responding to motor finance commission complaints. Under the existing rules, lenders are not required to provide a final response until after 4 December 2025.
The FCA is also consulting on a formal industry-wide redress scheme and has indicated that it may extend this pause further, potentially until after 31 July 2026, to allow lenders time to implement the scheme.
While these timelines are outside our control, we monitor regulatory developments closely and will keep you informed of any material updates affecting your claim.
Compensation amounts vary from case to case and depend on factors such as:
In its consultation on the proposed redress scheme, the FCA indicated that average compensation may be around £700 per agreement, although some claims may result in higher or lower amounts depending on individual circumstances.
No compensation value can be guaranteed, and each claim is assessed on its own merits.
No. You are not required to use a law firm or claims management company.
If a formal FCA compensation scheme is introduced, it is expected to be free for consumers to use, and lenders may contact eligible customers directly.
Some clients choose to instruct a law firm because they prefer professional support, want assistance managing correspondence and evidence, or do not have the time to handle the process themselves. The choice is entirely yours.
We operate on a contingency fee basis.
If we successfully secure compensation for you, we charge a success fee calculated as a percentage of the compensation offered per agreement. Our fees are capped and tiered based on the compensation amount.
All percentages shown are exclusive of VAT, which is charged at the prevailing rate of 20%.
| Compensation Band | Success Fee | Maximum Fee |
|---|---|---|
| £1 – £1,499 | 30% | £420 |
| £1,500 – £9,999 | 28% | £2,500 |
| £10,000 – £24,999 | 25% | £5,000 |
| £25,000 – £49,999 | 20% | £7,500 |
| £50,000 or more | 15% | £10,000 |
Important note on outstanding balances
If you still owe money under your finance agreement, your lender may use some or all of any compensation to reduce that balance. Even where compensation is offset rather than paid directly to you, our success fee is calculated on the full compensation amount awarded, not just the cash received.
Worked examples will be provided in your client documentation before you proceed.
If you were referred to us by a third party, we may pay them an introduction fee. This fee is paid by us, usually from our success fee, and does not increase the amount you pay.
We aim to respond to all enquiries promptly during normal business hours.
Email: info@edmclegal.com
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