Motor Finance Redress Scheme
Beware of motor finance scam calls
Following the Financial Conduct Authority (FCA) announcement that it will commence an industry-wide Motor Finance Consumer Redress Scheme, the FCA has received reports of scammers contacting people. These fraudsters are asking individuals for personal information including their name, address, date of birth and bank details. They then falsely claim that these people are owed compensation.
How to protect yourself
- If you receive a call like this, hang up immediately and do not share any information
- Report scam calls and texts to Ofcom by forwarding them to 7726. More information on how to do this is available on Ofcom’s website.
- Find out how to protect yourself from scams.
Commission complaints
On 11th January 2024, the Financial Conduct Authority (FCA) announced they would be reviewing historic commission paid to retailers on motor finance agreements, specifically discretionary commission arrangements (DCA). Since then, there have been various updates in relation to commission paid on motor finance agreements with the most recent announcement on 30th March 2026 where the FCA issued final rules on the motor finance consumer redress scheme. The below table provides key updates in relation to this.
| Key Date | Update |
| 11 January 2024 | The FCA announced they would be reviewing historic commission paid to dealers on motor finance agreements, specifically discretionary commission arrangements (DCA). Lenders were advised that they had until 25 September 2024 to respond to any customer complaints received. |
| 24 September 2024 | The FCA advised the investigation would continue, and the timeframe lenders were given to respond had been extended from 25 September 2024 until 4 December 2025. |
| 25 October 2024 | The Court of Appeal ruled on 3 cases involving automotive finance, all of which concerned the disclosure of commission paid to motor dealers by lenders for arranging finance agreements to buy vehicles. The judgement found in favour of customers. |
| 19 December 2024 | Following the Court of Appeal judgment, the FCA announced that lenders had until 4 December 2025 to respond to both DCA and non – DCA (disclosure of commission) complaints. |
| 1 August 2025 | The Supreme Court issued its decision on the appeal concerning 3 motor finance cases previously ruled on by the Court of Appeal in October 2024. The Court rejected the Court of Appeal judgment for 2 cases but upheld 1 in relation to an unfair relationship. |
| 3 August 2025 | The FCA announced they would be issuing a public consultation on a compensation scheme in early October 2025, proposing that the scheme would cover discretionary commission arrangements if they were not properly disclosed. The FCA would also consult on which non-discretionary commission arrangements should be included. The aim of a scheme would be to get compensation to eligible customers directly without the need to make a complaint. Compensation is not likely to be received until 2026 at the earliest. |
| 7 October 2025 | The FCA published their public consultation on their proposed compensation scheme for eligible customers. The scheme covers both discretionary and non-discretionary commission arrangements and outlines which customers are eligible for redress, including how it will be calculated. They also proposed to extend the deadline for firms to provide final responses to these complaints to 31 July 2026. The deadline for feedback to the consultation was 18 November 2025 and 4 November 2025 for changes to the complaint handling rules. |
| 30 March 2026 | The FCA has confirmed an industry wide Motor Finance Consumer Redress Scheme. Honda Financial Services will now handle complaints under these final rules rather than the previously paused complaint process. The scheme runs in two parts (based on when your agreement started) • Scheme 1: agreements started 6 April 2007 – 31 March 2014. • Scheme 2: agreements started 1 April 2014 – 1 November 2024. Key dates for customers who’ve already complained to us • If your agreement started before 1 April 2014 (Scheme 1): You can expect to hear from us by 30 November 2026. This reflects the FCA’s implementation window to 31 August 2026 for earlier agreements, followed by up to three months for outcomes. • If your agreement started on/after 1 April 2014 (Scheme 2): You can expect to hear from us by 30 September 2026 with our decision under the FCA scheme. This reflects the FCA’s implementation window to 30 June 2026 for these agreements, followed by up to three months for firms to confirm outcomes. You don’t need to do anything now. If we need anything from you, we’ll be in touch. |
| 2nd July 2026 | On 30 March 2026, the Financial Conduct Authority confirmed an industry-wide Motor Finance Consumer Redress Scheme. The scheme is designed to review certain motor finance agreements where commission arrangements may not have been properly disclosed. The scheme covers certain regulated motor finance agreements entered into between 6 April 2007 and 1 November 2024. The scheme is split into two parts, based on when the agreement was entered into: • Scheme 1: agreements that started from 6 April 2007 to 31 March 2014. • Scheme 2: agreements that started from 1 April 2014 to 1 November 2024. The FCA has confirmed that the scheme is currently subject to legal challenge. Updates were issued on 1 May 2026 and 8 May 2026 for both firms and consumers. On 2 July 2026, the FCA announced that parts of the scheme have been suspended while the legal challenge is ongoing. The FCA has said that the legal challenge is due to be heard either between 14 and 18 December 2026, or between 16 and 26 February 2027. As a result of the partial suspension, firms are not currently required to calculate or pay compensation under the scheme until the legal process has concluded. This means that, if compensation is owed under the scheme, any payment may be delayed. The FCA has confirmed that firms must continue to comply with the parts of the scheme rules that have not been suspended. Honda Financial Services is continuing to monitor FCA updates and prepare in line with regulatory expectations. If you have already made a motor finance commission complaint to us, you do not need to take any further action at this stage. We will contact you when we are able to provide an update or if we need any more information from you. Complaints that are entirely outside the scope of the FCA scheme will continue to be progressed according to our usual complaint handling procedures. You do not need to use a third party to make a complaint or claim directly with us. If you choose to use a representative, they may charge you for their services. You can find more information about the FCA scheme on the FCA website: Car finance claims | FCA |
Please note these extensions are only for complaints relating to commission. For further information from the FCA please visit Car finance complaints | FCA
If you wish to make an enquiry or complaint about commission, please use the methods detailed below. We aim to answer all calls as quickly as possible.
Email: hfe.customerservice@honda-eu.com
Post:
Honda Financial Services Plc
Cain Road
Bracknell
RG12 1HL
For further information and timelines, our complaints procedure can be found here . If you do not receive a response within the regulatory timelines or remain unsatisfied, you can ask the Financial Ombudsman Service to review your complaint.
The Financial Ombudsman Service can be contacted at Exchange Tower, London, E14 9SR or by telephone at 08000 234 567 or at www.financial-ombudsman.org.uk.
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