.jpg)
The FCA's motor finance redress scheme (PS26/3) covers approximately 12.1 million agreements — but not every car finance agreement qualifies. Before you submit a claim, it helps to know whether you are likely to be eligible. Our existing PCP eligibility guide walks through each criterion in depth. This post takes a different approach: five direct yes/no questions that mirror the FCA's eligibility test.
Work through each question in order. If you can answer correctly at every step, you are very likely to qualify for a claim under the scheme. For the broader context on what this means in terms of compensation and timing, see our post on mis-sold car finance claims in 2026.
Question 1: Was Your Agreement a PCP or HP Finance Agreement?
Answer needed: YES
The FCA's redress scheme covers two types of regulated motor finance agreement:
- Personal Contract Purchase (PCP) — you pay a deposit, monthly instalments, and then have the option to pay a final balloon payment to own the car, return it, or use any equity in a new deal
- Hire Purchase (HP) — you pay in monthly instalments and own the car outright at the end of the agreement
If your answer is NO (for example, you used a personal loan, a lease, or paid cash), you do not qualify under the FCA scheme. If you are unsure what type of finance you had, PCP Missold can identify this from your name, address history, and approximate dates — contact us before ruling yourself out.
Question 2: Was Your Agreement Started Between 6 April 2007 and 1 November 2024?
Answer needed: YES
The qualifying window for the motor finance redress scheme PS26/3 is 6 April 2007 to 1 November 2024 inclusive. Both the date the agreement was signed and the date credit was drawn down matter — in most cases, these are the same date.
If your agreement started before 6 April 2007 or after 1 November 2024, it falls outside the scheme's scope. If you are unsure of the exact date, an approximate year is sufficient to begin the assessment.
Question 3: Was Your Finance Arranged Through a Dealership or Broker?
Answer needed: YES
The mis-selling occurred in the intermediary relationship between the consumer, the dealer (acting as a credit broker), and the lender. The scheme covers agreements arranged through a car dealership, motor dealer, or other credit broker.
The vast majority of UK car finance agreements are arranged through the dealership at the point of sale. Major lenders covered include Barclays, Santander, and many others — check the full list of lenders we claim against.
If you arranged finance directly with a bank or building society — without going through a dealer or broker — the scheme is less likely to apply. Contact PCP Missold to confirm.
Question 4: Was There a Commission Paid to the Dealer — and Was It Not Clearly Disclosed?
Answer needed: YES to both parts
In practice, you almost certainly will not know whether commission was paid or what type of arrangement was in place — because it was not disclosed. That is precisely the problem. The three types of hidden commission covered by the scheme are: Discretionary Commission Arrangements (where the dealer set your interest rate), high commission arrangements (where the commission exceeded 39% of the total cost of credit), and contractual ties.
If you were given a clear, prominent written disclosure of the commission arrangement before you signed — including what type it was and how much the dealer would receive — you may not qualify. But in the FCA's own investigation, this standard of disclosure was found to be consistently absent across the industry. See our full guide to DCAs for a detailed explanation of how the disclosure failure worked in practice.
The commission must also have exceeded a minimum threshold: £120 for pre-April 2014 agreements; £150 for post-April 2014. However, car finance commissions were routinely hundreds or thousands of pounds, so the vast majority of claims easily clear this threshold.
Question 5: Have You NOT Previously Accepted a Final Settlement for This Agreement?
Answer needed: CORRECT (you have not accepted a final settlement)
If you have previously complained about this specific agreement and accepted a final resolution offer — or your complaint was determined by the Financial Ombudsman Service or a court — you are excluded from the FCA scheme for that agreement.
Receiving a holding letter, a complaint acknowledgment, or a statement that 'no redress is owed' does not constitute accepting a final settlement. If in doubt, PCP Missold can review any prior correspondence to determine whether you remain eligible.
What If You're Unsure on Any Question?
The most common areas of uncertainty are: not knowing what type of finance agreement you had; not remembering which lender you used; not knowing whether commission was paid; and not being sure whether previous correspondence constitutes a final settlement.
In all of these cases, PCP Missold can help. Our initial assessment is free and requires no documentation. We trace your agreements using credit reference agency data and direct lender requests. We also identify the type of commission arrangement from lender records — this is standard in our claims process. If you are not sure whether something in your history constitutes a warning sign, our guide to PCP mis-selling red flags may help you identify relevant details before you contact us.
What Happens After You Confirm Eligibility?
Once PCP Missold confirms you qualify, your claim moves to submission. Here is what comes next:
- We prepare and submit your complaint to the lender — see our how it works page for a step-by-step walkthrough
- We calculate an estimate of your entitlement using the FCA's hybrid remedy formula — explained in our post on the car finance compensation calculator
- We track your claim through the FCA redress scheme and advise on any offer received
- For a detailed breakdown of when you can expect payment, see our guide to the car finance claim timeline
.png)
.png)
