If you’ve complained about mis-sold car finance and recently heard back from your lender, you might have been caught off guard by the amount they’ve offered. For many people in 2025, the figures seem surprisingly low, and the letters often lack proper detail or explanation. Understandably, this has left drivers wondering what’s really going on.

Lenders have been delivering modest, one-off refund offers more frequently - a noticeable increase. These frequently arrive with no warning and are framed as final responses. When headlines are announcing widespread mis-selling, being offered several hundred pounds without any breakdown can be a disappointment.

But here’s something important to understand. These refund offers are not part of any official redress scheme. At the moment, the Financial Conduct Authority (FCA) has paused complaint responses while it waits for a ruling from the Supreme Court. Despite this pause, some lenders are choosing to send out early offers anyway.

In this article, we’ll explore why that’s happening, what these refund letters typically include, and what you might want to consider before deciding whether or not to accept one.

What These Offers Usually Look Like

The types of offers being reported tend to follow the same pattern. Many are flat, rounded figures — often in the low hundreds — with no breakdown of how that number was reached. Some are described as goodwill payments, while others are labelled as “full and final offers”.

A common problem is that these letters rarely make it clear whether the offer includes a refund of overpaid interest, undisclosed commission, or just a small portion of one or the other. In plenty of cases, commission isn’t mentioned at all, even though that’s often a major part of the complaint.

Some letters also include legal-sounding wording. This might say that if you accept the offer, you won’t be able to raise your complaint again or refer it to the Financial Ombudsman later on. That can feel quite heavy for someone just trying to understand what they’re being offered.

If you haven’t checked whether your finance agreement was mis-sold, our guide on how to check for mis-sold car finance can help you work out what to look for.

Why These Offers Are Being Sent Now

As things stand in mid-2025, there’s no formal redress scheme in place. The FCA has paused complaint handling and is waiting for the Supreme Court to rule on whether certain types of commission arrangements between brokers and lenders were unfair. That decision is expected in July.

Until the ruling comes through, lenders are not required to issue any refunds. Some are simply holding off. But others are choosing to act now by offering small sums to close complaints before the rules are clarified.

This seems to be about reducing risk. If a customer accepts an early refund and signs a settlement, they may not be able to claim more later, even if the regulator later says they should have received more. For lenders, this is a way of managing potential costs quietly.

These aren’t official payouts and they’re not based on a standard calculation. It’s up to each company to decide what to offer, if anything at all. That’s part of what makes this situation so confusing for consumers.

What the Rules Say Right Now

At the time of writing, there is no consistent guidance on how refunds ought to be calculated. The FCA is awaiting the Supreme Court to issue some formal directions or redress procedures before publishing them.

This has led to a patchy and inconsistent landscape. Some lenders are sending out early offers. Others have paused completely. And a few are replying to complaints with holding statements while the legal position is still unresolved.

This is why two people with similar car finance complaints can receive completely different responses — or none at all.

If you’d like to know where you currently stand and what your protections might look like later in the year, our article on car finance consumer rights covers the key facts.

Are These Offers Binding? And Should You Accept?

Most of the refund offers we’ve seen are marked as “full and final”. That means accepting one could mean giving up the right to challenge the amount later or raise the issue again, even if the legal or regulatory position changes.

Some people might choose to accept an offer, especially if the amount seems reasonable to them or they want to bring the matter to a close.

But in many cases, there’s a risk of missing out on a much larger car finance rebate. If your agreement involved a broker or dealership that received commission — and you were never told about it — you might be entitled to a much higher refund once formal guidance is introduced.

This is why it’s worth slowing down and getting the full picture before signing anything. Ask for a breakdown of what’s included. Make sure you understand what rights you’re giving up. And if you’re not sure, get advice.

If your agreement was a PCP deal, you can learn more about how those are being reviewed in our guide to PCP claims in the UK.

What We’re Hearing About Early Offers

There have been growing reports of people receiving small refund offers that don’t feel properly explained. In some examples shared publicly, consumers have been offered as little as £350 with no breakdown of how that number was reached. Some letters contain language that makes it sound like the offer is the end of the road, even if the recipient still has questions.

A number of these early offers seem to exclude key parts of the claim, like interest or commission. This leaves people unsure whether they’re being treated fairly or not. Understandably, many are choosing to wait until the FCA has issued its full response before deciding what to do.

What’s clear is that there’s no consistency right now. Some offers include very little detail. Others are legally worded but vague on substance. And some customers have received no response at all.

This shows how uncertain the situation remains. These are not just financial complaints — they’re claims for cars that were often sold with terms that weren’t clearly explained. That’s why people are right to ask questions and hold off if they don’t feel comfortable.

What You Can Do If You Get an Offer

If you’ve had one of these refund offers, you don’t need to rush.

Start by reading the letter carefully. If there’s no explanation of how the refund was calculated, ask for one. It’s reasonable to want to know whether it includes overpaid interest, commission, or both.

Look out for legal terms like “full and final settlement”, which could mean giving up your right to claim more in the future. If you’re not sure what a term means, or whether it’s binding, it’s okay to get a second opinion.

You may even need to compare your case to others. This could be significant if your finance entails a broker and you were not informed about commission. Hold off till the rules are clarified.

The most important thing is to not be compelled to make an immediate decision. You have a right to make a completely informed choice.

Final Thoughts

The refund offers being made right now are not part of any official compensation process. They’re voluntary steps being taken while everyone waits for the Supreme Court’s decision and updated FCA guidance.

For lenders, these offers help manage risk and uncertainty. But for consumers, they can be confusing, inconsistent, and sometimes incomplete.

If you’ve received an offer and you’re not sure what to do, the most important thing is to pause. Ask questions. Make sure you understand what’s being offered — and what you might be giving up by accepting it.

And if you’re wondering how much you can get for mis-sold car finance, the honest answer is that it depends on what happens next. Once the legal decision is in and the FCA responds, we’ll all have a much clearer picture.

Until then, stay informed, take your time, and don’t settle for less than you might be owed.