There has been some confusion following two major developments around car finance claims - one from the Supreme Court and another from the Financial Conduct Authority (FCA). Here's what happened, and what it means for your claim.

What Did the Supreme Court Decide?

On Friday 1 August 2025, the Supreme Court gave its verdict on a case that looked at whether car dealers had a legal duty to act in the best interests of customers when arranging finance, and whether failing to disclose commission breached that duty.

The court ruled that, in most cases, car dealers do not owe a “fiduciary duty” to customers. In simple terms, this means that not every case involving an undisclosed commission will automatically qualify for compensation under that legal argument.

However, this was not a complete win for the finance industry. The court did accept that some commission arrangements - particularly where commissions were extremely high and not explained to the customer - could still be unfair. One individual case in the ruling did result in a successful claim for the customer because the commission made up a large percentage of the credit cost and had not been disclosed.

What Has the FCA Announced?

On Sunday 3 August 2025, the FCA announced that it plans to introduce a redress scheme for customers affected by hidden or unfair commissions, particularly those involving Discretionary Commission Arrangements (DCAs).

In DCAs, car dealers were allowed to adjust the interest rate offered to the customer, and the higher the rate they charged, the more commission they received. These arrangements were banned in 2021, but many people had already taken out finance agreements without knowing these commission structures existed.

The FCA believes this led to millions of people being charged more than they should have, without being properly informed.

Here is what the FCA has confirmed so far:

• A public consultation on the redress scheme will begin by early October 2025
• The scheme will cover car finance agreements dating back to 2007
• Compensation is expected to start being paid in early 2026
• Most customers won’t need a solicitor or claims management firm to take part, though they can choose to use one

The FCA estimates that lenders could face total payouts between £9 billion and £18 billion.

What Does This Mean for Claim.co.uk Customers?

We want to make this as clear as possible:

• We are still processing car finance claims
• We continue to help customers challenge lenders where discretionary commissions were hidden or unfair
• Our focus is on the exact types of agreements the FCA is prioritising

We are here to support you through the process, whether your claim is being pursued now or will fall under the FCA’s redress scheme once it is launched.

We understand that many people do not know how their car finance was arranged or whether commissions were added. Our legal panel helps you:

• Check for signs of unfair commissions
• Review your finance agreements
• Submit your claim to the lender
• Keep you informed of your rights as the redress scheme develops

Do You Need a Claims Company?

No - you do not need to use a claims company to make a complaint or claim compensation.

The FCA has made it clear that customers can contact their lender directly and make a complaint themselves for free. If your complaint is rejected, you can also escalate it to the Financial Ombudsman Service at no cost.

At Claim.co.uk, we offer a service for those who prefer support and guidance throughout the process. While some people feel confident handling a claim themselves, others choose to use a claims company for help with gathering paperwork, understanding eligibility, or managing communication with the lender.

The choice is entirely yours - and whichever route you take, we want all consumers to be aware of their rights and have access to fair compensation.

Use our free checker on our dedicate car finance website Claim.co.uk – it only takes a few minutes to see if you may have a claim.