Free compensation scheme plans

The Financial Conduct Authority (FCA) plans to set up a new compensation scheme in 2026. It would be free to use.

The scheme will decide:

  • who gets compensation
  • how much they will get
  • how lenders will pay out the money
  • who doesn't get compensation.

You can claim without paying for help from a law firm or claims management company (known as a CMC).

If you have hired a law firm or claims management company

You might be using a law firm or a claims management company to help you get money back.

If you are using a law firm, they must:

  • check how the Supreme Court's decision affects you
  • contact you and explain what it means in a way you can understand
  • tell you what your options are
  • let you know about the FCA's planned compensation scheme.

Remember, they may take some of your compensation as payment for their help.

Can I make a compensation claim myself?

You do not need a lawyer or claims company to make a claim. You can contact your lender directly to make your claim. Or, if you are eligible, you would be able to apply for free when the FCA's scheme starts.

What can I do now?

You could choose to:

  • wait for the FCA's free scheme; or
  • keep using your law firm or claims management company – make sure they tell you your options and you understand any costs you might need to pay; or
  • make your own claim by contacting your lender directly.

How is this different from other complaints?

This is not about general money matters, car problems or issues with your car dealer. It is only if you paid a lot extra because of a commission deal between the lender and the dealer and you weren’t told.

For other problems, talk to the dealer or use other help options.