Motor Finance Commission 

The Upper Tribunal suspended the parts of the FCA scheme that require lenders to calculate or pay compensation. However, under FCA guidance lenders must continue with the parts of the scheme that remain in force. This includes:

• Identifying relevant complaints and agreements
• Gathering information on the agreements 
• Analysing the agreements in line with the scheme rules and,
• Subject to limited exceptions, contacting customers who complained and are not owed compensation.

For customers who have previously complained, we have carefully reviewed their finance agreements in line with the scheme rules. If our review shows that no compensation is due, we will shortly contact those customers to explain our decision and what happens next. 

It does not mean that all complaints have been decided or that compensation payments will begin. Those elements are still paused whilst we await the outcome of the legal challenge to the FCA scheme. 

Your letter will explain:

• Which finance agreement we are referring to;
• The outcome of our review;
• Why no compensation is due; and
• What you can do next.

If this applies to you, we’ll write to you by:

• 18 November 2026, if your agreement began on or after 1 April 2014 and you complained by 30 June 2026.
• 18 January 2027, if your agreement began before 1 April 2014 and you complained by 31 August 2026.

If you have received a communication from us, this is what you need to do:

1. Read your letter carefully

• Check the agreement details, our decision and any response or referral deadline shown in the letter. 

2. Choose an option

• Depending on the type of decision you receive, your letter will explain whether you can accept the decision, object to it, opt out of the scheme or refer your complaint to the Financial Ombudsman Service.

3. Reply by the deadline if you want to take action

• Once you’ve decided how you’d like to proceed, please follow the instructions in your letter in line with any deadline provided.

4. Keep a copy

• Keep the letter and any information you send us for your records.

You do not need to contact us for an update. We are reviewing all agreements in line with the scheme rules and will contact you if we have an update. 

We will contact you separately about each agreement you have with us.

Our legal challenge focuses on the approach used in finding unfairness and loss, and the calculations for redress. We support compensation for customers who have been disadvantaged, but believe a scheme must be lawful and fair.  

For more information regarding our challenge, see: Motor finance scheme: legal challenge documents | FCA

We’ll update this page as soon as more information becomes available.

Information can also be found on the FCA website: Car finance claims

For Porsche agreements entered into before 1 July 2010, Porsche finance was provided by Black Horse Limited (trading as ‘Black Horse’). Please redirect your motor commission complaint to Black Horse Motor commission complaints.

The FCA has published the names of two websites using our trademarked names without permission. They are also not authorised or regulated by the FCA. Please do not engage with these websites. 

Volkswagen PCP Claims / volkswagenpcpclaims.co.uk | FCA

Audi PCP Claims / audipcpclaims.com | FCA

If you’re not sure whether a call or message you’ve received about the scheme is real, you can verify the details by:

• Contacting us at commissionsqueries@vwfs.co.uk or call us on 0800 912 3569, Monday to Friday 9am – 6pm, excluding UK bank holidays.
• Visiting the FCA website. The FCA publishes all lender contact details on their website: Car finance list of lenders | FCA

As parts of the scheme are currently paused, we are not calculating or contacting customers about compensation payments. The FCA does not expect payments to begin until 2027 at the earliest. Please see our ‘What does this mean for you’ section to learn more.

In the meantime, it is important to be mindful of scams. The Financial Conduct Authority (FCA) has made us aware that there are potential scammers attempting to contact customers offering fake compensation, to try and collect their personal details, such as your name, address, date of birth and bank details. 

If you receive one of these potential calls or scam messages, please hang up the call immediately and do not reply to the message. 

If you are based in England, Wales or Northern Ireland you can report the scam attempt to Action Fraud, which is the UK’s centralised fraud centre on 0300 123 2040  or via their website Action Fraud.

If you are based in Scotland, please report this directly to the police by calling 101.

If you have already contacted a third party and you have any questions on this process, the best thing to do would be to contact them directly to understand how they will manage your enquiry. 

However, you may find some useful information on how this process will work by visiting www.sra.org.uk/motor-finance-compensation. 

You can simply log your complaint via our Motor Finance Commission Complaint Form. Please include as much information as you can to help us find your agreement. Once you've made a complaint, we will send you an acknowledgement, so you know we've received it.

For your peace of mind, you don’t need to use a law firm or claims management company (CMC) to issue/manage your complaint. Please also ensure you don’t sign up to multiple CMCs or law firms as you may be charged multiple fees.

Although parts of the scheme are suspended, the rules that remain in force require lenders, subject to limited exceptions, to tell customers who complained when their agreement has been reviewed and no compensation is due.

No. Only parts of the scheme are operating.

The parts that require lenders to calculate or pay compensation, or to communicate that compensation is owed, remain suspended until the legal process concludes.

Earlier this year, the Financial Conduct Authority (FCA) published their rules and guidance for an industry-wide motor finance compensation scheme. Following this, four legal challenges, including one by us (VWFS), were brought forward. 

We support compensation for customers who have been disadvantaged but believe a scheme must be lawful and fair. Our challenge focused on the approach used in finding unfairness and loss, and the calculation process for redress.

The Upper Tribunal, the court responsible for reviewing these matters, has confirmed the need to hear these challenges. 

These challenges will either be heard December 2026 or February 2027. The actual date will depend on whether the parties involved ask the court for further expert opinion or disclosure of information, and if those applications are successful. The Upper Tribunal will then advise their findings and recommendations. 

The scheme is designed to compensate customers who weren’t told important information about commission relating to their vehicle finance agreement. Under the scheme rules it examines whether an agreement included any features and/or arrangements that could have created an unfair relationship. This means checking for:

• Discretionary commission arrangements (DCA);
• High commission arrangements; and
• Certain tied arrangements.

Other scheme conditions and exceptions may also apply. Your decision letter will explain how the rules apply to your agreement.

If your letter says you can object, you may do so within the deadline shown in the letter.

Explain what you believe we have not considered or what you think is incorrect. You may also send relevant supporting information.

Follow the contact instructions in your letter.

Accepting the decision means you agree with the outcome for the agreement covered by the letter. It brings your complaint about that aspect of the agreement to an end. 

Read your letter carefully before deciding, as it will explain the effect of acceptance.

Opting out means we will stop handling the complaint about that agreement under the FCA scheme. This may affect how you can pursue the matter later.

Read the explanation in your letter and consider seeking independent advice before choosing this option.

Each agreement is reviewed separately.

You will receive separate letters for each agreement and each agreement may have a different outcome.  Always check the agreement number and vehicle details shown in each letter.

Any part of your complaint that is not covered by the FCA Motor Finance Compensation Scheme will be handled separately under our usual complaints process. If you feel that any element(s) of your complaint hasn't been adequately covered, please let us know the details and we’d be happy to look into this for you. 

If you want to know more about how we deal with complaints, you can read our Customer Concern Policy here.

We cannot currently calculate or pay compensation, or send communications confirming compensation owed, while those parts of the scheme are suspended.

We will update this page and contact affected customers when the legal process and FCA requirements allow us to do so.

No. You can deal with us directly and the FCA scheme is free to use.

If you choose to use a representative, they may charge you.

If you need help understanding a letter, information in another format or support to respond, please use the contact details in your letter or contact us. Please tell us what support you need and we will do our best to help.