Updated: 22 October 2025

Originally Published: 24 December 2024

Buying a car should be exciting, not confusing. Yet many UK drivers are now discovering that the way their finance was arranged may not have been as clear as they thought at the time. If your agreement was with Alphera Finance or arranged through a dealership that used Alphera Financial Services, it is sensible to take a fresh look.

The Financial Conduct Authority (FCA) is consulting on a national solution that would deliver consistent outcomes for customers across the motor finance market [1]. The consultation runs to 18 November 2025 and sets out who could qualify for redress and how payments would be calculated. Based on the FCA’s modelling, total redress across the industry could reach up to £8.2 billion, and the typical payment across eligible agreements is currently estimated at around £700 [2]. These are market-wide figures, not guarantees for any single Alphera finance claim.

If you used Alphera car finance for a Personal Contract Purchase (PCP), Hire Purchase (HP) or another regulated agreement between 6 April 2007 and 1 November 2024, this guide walks you through what has changed, how to spot Alphera Finance mis-sold car finance, and how to start an Alphera car finance claim in a calm, safe and compliant way.

Why Alphera car finance customers are reviewing old agreements

For many years, Alphera Financial helped customers spread the cost of a vehicle. The process often ran through the dealership. You chose a car, discussed monthly payments, and the paperwork was prepared and signed on the day.

What many people did not see behind the scenes was the commission structure that could sit inside the deal. In a number of cases, dealerships earned a commission from Alphera Finance for arranging the loan. Under some historic models, if the dealer set a higher interest rate, the commission could be higher. That created a conflict of interest that was not always explained in a way customers could understand.

The FCA later banned those structures for new loans [3]. Older agreements are now being reviewed to check whether the pricing and disclosure were fair. That is why more people are bringing an Alphera claim today. They want to know if the rate they paid was influenced by a commission model that was never fully explained at the time.

Everyday signs of Alphera Finance mis-sold car finance

You do not need to be a finance specialist to spot potential problems. Many drivers find the clues by simply re-reading their agreement and any emails from the dealer. Signs include:

• Your APR looked high for your credit profile and no one could give a clear reason
• No one explained in plain language that the dealership could earn a commission from Alphera Finance
• PCP features such as the optional final payment, mileage limits or end-of-term fees were not clearly discussed
• Unexpected administration fees, option-to-purchase fees or settlement charges appeared later
• You were told there was only one lender available or felt pressure to sign on the same day without time to compare

If two or more points ring true, your agreement may fall into a category that the FCA is considering for redress. That is when an Alphera finance claim becomes worth exploring.

The FCA investigation and the 2025 redress proposal

The FCA looked at millions of motor finance agreements and found patterns that could create unfair relationships between customers, lenders and brokers. To address this consistently, the regulator opened a consultation in October 2025 covering agreements from 6 April 2007 to 1 November 2024. The proposal highlights three core areas that may make an agreement unfair [4]. These apply across the market and can be relevant to an Alphera claim.

1) Discretionary Commission Arrangements

Before 2021, some dealerships working with Alphera Finance could influence the interest rate. The higher the rate they set, the more commission they earned. Customers were rarely told how that incentive worked. If your Alphera finance DCA influenced the rate you paid, you may have grounds for an Alphera finance PCP claim or HP claim.

2) High commission arrangements

The FCA has highlighted cases where the broker’s commission was very large in proportion to the cost of the credit. Even where a rate was not moved up or down, a high commission could still distort the sale. If a high commission affected the product you were sold, an Alphera Finance mis-sold review may be appropriate.

3) Restricted access to lenders

Some brokers mainly offered credit from a single lender. If you were not told about alternatives, or choice was presented in a way that was not meaningful, the sale might be unfair. If your dealership pushed a single option through Alphera Financial, that could be relevant to your Alphera car finance claim.

What the Supreme Court said in August 2025

In August 2025, the Supreme Court confirmed that the existence of commission does not automatically make a contract unlawful [5]. The Court also confirmed that if a commission was hidden, excessive, or influenced the price in a way that was not fairly explained, the relationship can still be unfair under consumer credit law.

For customers with Alphera car finance, that means a contract can look valid on paper yet still be mis-sold if important information about commission or cost was not made clear enough.

How the FCA’s scheme is likely to calculate redress

The FCA proposes a hybrid calculation. In simple terms, decision-makers would look at both the commission involved and the extra interest paid because of how that commission worked. The aim is to reflect the real-world impact for the customer, not just a single number on the dealer’s invoice.

Market-wide expectations today

• Typical outcomes around £700 per eligible agreement
• Serious cases may return the full commission with interest where thresholds are met
• Total redress across the market could reach up to £8.2 billion

Those are industry estimates. Your own Alphera finance compensation will depend on your agreement, the rate, the term, the commission structure and your usage. Nothing is guaranteed.

Timelines and what happens while the scheme is finalised

To keep decisions consistent once the rules are set, the FCA has aligned complaint handling across the sector.

• 4 November 2025: Deadline for comments on extending complaint handling periods
• 18 November 2025: Consultation closes
• 4 December 2025: Pause on commission-related final responses expected to end [6]
• Early 2026: Final FCA rules and policy statement expected
• 31 July 2026: Proposed deadline for lenders to issue final responses
• Late 2026: Payments expected to begin once the framework is live

You can submit an Alphera finance claim [7] now. It will be logged and ready for assessment under the final rules. Sending it early does not jump the queue for payment, but it does make sure your case is in line to be reviewed.

A quick self-check for mis-selling

Use these questions as a simple filter before you take the next step.

Did anyone explain commission in a way you understood?

A vague sentence such as “we may receive a commission” might not have been enough to help you judge the impact on your price.

Did the rate feel out of line with your credit history?

If you had a strong profile but an unusually high APR, a discretionary model could have influenced your cost.

Were PCP specifics fully explained?

For a Alphera pcp claim, note whether the optional final payment, mileage limits and excess mileage charges were made clear from the start.

Did you feel rushed or restricted?

If every quote came from the same lender and you were encouraged to sign immediately, that can point to a limited choice sale.

If you answer yes to more than one, you likely have enough to write a focused Alphera car finance claim.

Step by step: how to bring an Alphera finance claim

You can do this yourself, ask a solicitor, or appoint a regulated firm. The basic steps are the same.

Step 1. Collect your documents

Gather your agreement, pre-contract information, any dealer quotes, and emails. If you cannot find them, ask Alphera Finance or the dealership for copies. Include your agreement number if you have it.

Step 2. Sense-check the figures

Write down the APR, term, total repayable and any fees you can see. For PCP, note the optional final payment, mileage limit and excess mileage rate. Compare the figures with what you remember being told.

Step 3. Write a clear complaint

Keep the tone calm and factual. A short structure works best.

• What happened: “I was not told that my dealer’s commission could increase when my interest rate increased.”
• Why it matters: “I believe I paid more interest than I should have because the pricing was influenced by commission.”
• What you want: “Please review my agreement under the FCA proposals and provide a fair Alphera Finance compensation outcome, including a refund of overpaid interest and any undisclosed commission where appropriate.”

If your case relates to a PCP, say so clearly. You can refer to it as an Alphera finance PCP claim in the subject line.

Step 4. Send and keep records

Submit by email, post or the lender’s web form. Keep copies of everything and note dates. A simple timeline helps if you later speak to the Financial Ombudsman Service.

Step 5. Wait for the timetable to move

Normally a firm has eight weeks to respond. Commission-related final responses are paused until 4 December 2025. Submitting now ensures your case is queued.

Step 6. Escalate if you disagree

If you are unhappy with the outcome once the pause lifts, you can refer the case to the Financial Ombudsman Service within six months of the final response. The Ombudsman is free and independent. If it upholds your case, it can instruct the lender to pay redress.

What an Alphera finance settlement can include

When an Alphera finance claim succeeds, redress can include:

• Refund of overpaid interest that flowed from the commission model
• Repayment of undisclosed or poorly disclosed commission
• Refund of fees that were not fairly explained
• Simple interest on any refund, typically the Bank of England base rate plus one percentage point
• Corrections to your credit file where appropriate

Some outcomes are modest. Others are more significant, especially where commissions were high or the pricing effect was clear. The around £700 figure is a market average, not a promise for your individual Alphera claim.

Should you use a finance claims expert, a solicitor, or go DIY

You have three main routes. Choose the one that fits your time and confidence.

Do it yourself

Best for straightforward cases when you have your paperwork. Free, and you stay in control.

Solicitor

Useful for complex or defended cases. Fees vary and may be a percentage of redress plus legal costs. Regulated by the Solicitors Regulation Authority.

Claims management company

Helpful if you want end-to-end support or you have missing documents. A finance claims expert will assemble the file, track deadlines and manage correspondence. Fees are usually no win, no fee, often between 18 and 36 percent including VAT. Only work with FCA-authorised firms and read the client agreement carefully.

Using help does not increase eligibility. It can simply reduce admin and give structure to your Alphera finance claim.

Evidence checklist that makes reviews faster

• Finance agreement and pre-contract credit information
• Dealer quotes or finance illustrations
• Emails and letters with the dealer or Alphera Financial
• Bank statements showing payments and settlement figures
• Notes of phone calls with names and dates
• Any messages that touch on commission, choice of lender, or why a rate was set

You do not need perfect records. Send what you have and request copies of what is missing.

Key facts at a glance

• Covered period: 6 April 2007 to 1 November 2024
• Eligible products: PCP, HP and other regulated Alphera car finance
• Mis-selling categories: Discretionary Commission Arrangements, High Commission Arrangements, Restricted Access to Lenders
• Estimated market redress: Up to £8.2 billion
• Typical payment: Around £700 per eligible agreement
• Final FCA rules expected: Early 2026
• Compensation payments expected: Late 2026

Frequently Asked Questions

Can I start an Alphera finance claim now?

Yes. You can submit your complaint today. It will be logged and reviewed once the FCA timetable allows final responses.

Does the proposal cover both PCP and HP?

Yes. It includes Alphera car finance for PCP, HP and other regulated agreements in the covered period.

How much might I receive?

The market-wide estimate is around £700 per eligible agreement. Your figure can be higher or lower depending on the loan size, the term, the interest rate and the commission model.

Can I claim if my agreement has ended or the car has been sold?

Yes. An Alphera car finance claim can cover historic agreements if they fall within the consultation dates.

Do I need to pay someone to help me?

No. You can complain directly for free and you can use the Ombudsman for free. If you prefer support, you can appoint a finance claims expert or a solicitor. Check that they are authorised and that fees are clear.

What is the difference between a refund and compensation?

People often use the words together. In practice, a refund usually means returning overpaid interest and undisclosed commission. Compensation can include that refund plus simple interest on the redress and, when appropriate, corrections to your credit file.

What if my case mentions Alphera Finance DCA?

That refers to a discretionary commission arrangement. If the dealer could influence your rate and earn more commission as a result, that can be relevant to an Alphera PCP claim or HP claim.

Final thoughts

The FCA’s consultation is designed to bring clarity and fairness to a problem that has affected drivers across the country. If your agreement involved a discretionary commission model, a very high commission structure, or restricted lender access, you have a reasonable basis to ask for a review.

Take it step by step. Gather your documents. Write a clear account of what happened and why it mattered. If you would find it easier, ask a finance claims expert or a solicitor to help structure the case. Whether you go DIY or use support, submitting an Alphera finance claim now means your agreement is recorded and ready for a fair assessment once the FCA’s final rules arrive in 2026.

No one can promise a result. What you can do is present a clear, honest file that helps the reviewer see the full picture. If the evidence shows you overpaid because of the way the finance was arranged, a fair Alphera finance compensation outcome is the right next step.

__________

References:

1. The Financial Conduct Authority (FCA) is consulting on a national solution that would deliver consistent outcomes for customers across the motor finance market - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. total redress across the industry could reach up to £8.2 billion, and the typical payment across eligible agreements is currently estimated at around £700 - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
3. The FCA later banned those structures for new loans - https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models
4. three core areas that may make an agreement unfair - https://www.fca.org.uk/publication/consultation/cp25-27.pdf
5. In August 2025, the Supreme Court confirmed that the existence of commission does not automatically make a contract unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
6. 4 December 2025: Pause on commission-related final responses expected to end - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
7. submit an Alphera finance claim - https://www.fleetnews.co.uk/news/car-industry-news/2019/01/11/alphera-launches-new-online-car-finance-portal