Updated: 23 October 2025

Originally Published: 07 December 2024

Buying a car should feel straightforward. For many people who used Blue Motor Finance, it did at the time. Monthly payments looked manageable, the car felt right, and the paperwork was sorted at the dealership in a single visit. In 2025, a lot of drivers are looking again at those agreements after the Financial Conduct Authority (FCA) opened a national consultation to deliver consistent redress for mis-sold car finance across the UK market [1].

The consultation closes on 18 November 2025 and explains who may qualify and how compensation would be calculated. Based on the FCA’s modelling, total market redress could reach up to £8.2 billion, with a typical payment of around £700 per eligible agreement [2]. Those are market-wide figures, not promises for any single Blue Motor Finance claim. Your outcome will depend on your own contract and evidence.

If you took out a regulated credit agreement with Blue Motor Finance between 6 April 2007 and 1 November 2024 on PCP or HP, this guide shows you what has changed, how to spot signs of Blue Motor Finance mis-sold finance, and how to start a Blue Motor claim safely and confidently. You can complain directly for free, use the Financial Ombudsman Service for free, or ask a finance claims expert to help if you prefer support.

Why Blue Motor Finance customers are reviewing old loans

Blue Motor has been a popular lender for both new and used cars bought through dealers. Many people financed everyday family vehicles and nearly new stock listed as Blue Motor Finance cars on forecourts across the country. The issue that has driven a surge in Blue Motor Finance complaints is the way some historic deals were priced.

Before 2021, some brokers and dealers used a Blue Motor Finance discretionary commission model, often referred to as a Blue Motor Finance DCA. Under that approach, the dealership could influence or set the interest rate. The higher the rate, the more commission the broker could receive. Most customers were not told how that incentive worked, or how it could change the price they paid.

The FCA has already banned these structures for new lending [3]. Older agreements are now under review. That is why you will see more Blue Motor Finance news about complaints, refunds and the regulator’s proposed next steps.

Simple signs your Blue Motor Finance deal may have been mis-sold

You do not need to be a finance specialist to spot red flags. Many drivers find clues just by reading their documents with fresh eyes.

• Your APR felt high for your credit profile and no clear reason was given.
• No one explained that the dealer could earn commission or influence your rate.
• PCP features such as the optional final payment, mileage limits, or end-of-term fees were not explained in plain language.
• Administration fees, option-to-purchase fees or early settlement charges appeared without a proper explanation.
• You were told there was only one lender available, or were pushed to sign on the same day without time to compare.

If two or more points sound familiar, it is sensible to consider a Blue Motor Finance claim.

The FCA’s consultation and what changed in 2025

Two developments matter most for anyone considering Blue Motor Finance claims.

Supreme Court clarity

In August 2025, the Supreme Court confirmed that commission is not automatically unlawful [4]. If commission was hidden, excessive, or influenced what you paid, the relationship can still be unfair under the Consumer Credit Act. That gives many Blue Motor Finance mis-sold cases a path to be reviewed where disclosure was weak and the cost was affected.

FCA redress consultation

In October 2025, the FCA opened a six-week consultation to design a national scheme covering agreements from 6 April 2007 to 1 November 2024. The aim is one process, consistent decisions, and clear methods for calculating Blue Motor Finance compensation and redress across the market.

Complaint-handling timetable

To keep outcomes consistent, commission-related final responses are paused until 4 December 2025 [5]. The FCA has proposed a sector-wide deadline of 31 July 2026 for firms to issue final responses once the rules are final. Final rules are expected in early 2026, with payments likely later in 2026. You can submit your Blue Motor Finance claim now so it is logged and ready to be assessed when the pause lifts.

The three categories of unfair agreements in scope

The FCA highlights three patterns that can make a car finance deal unfair. These apply across lenders and may be relevant to your Blue Motor Finance mis-sold finance review.

Discretionary Commission Arrangements

A broker could vary your interest rate and earn more when the rate went up. Most customers were not told how this incentive worked. If your documents or recollection suggest a Blue Motor Finance discretionary commission influenced your rate, your agreement may qualify.

High commission structures

Some brokers received very large payments even where the rate was not adjusted. The consultation flags levels such as 35 percent or more of the total cost of credit or 10 percent or more of the loan amount. High commissions can distort advice and push customers toward costlier options.

Restricted access to lenders

Some dealers mainly offered credit from a single lender. If alternatives were not explained, or you were led to believe there was only one route, that limited choice can be unfair.

If one or more of these apply, your Blue Motor Finance compensation request has a credible foundation.

How compensation is likely to be calculated

The FCA proposes a hybrid approach that considers both the commission paid and the extra interest you are estimated to have paid because of that commission. The goal is to reflect the real-world cost to the customer.

• Typical outcomes: Around £700 per eligible agreement across the market.
• Serious cases: Where very high commissions or strong pricing effects are shown, proposals include returning the full commission with interest.
• Other elements: A Blue Motor Finance refund can include unfair fees that were not properly explained and simple interest on redress, often calculated at the Bank of England base rate plus one percentage point. When appropriate, inaccurate credit markers can be corrected.

These figures are not guaranteed. Your result depends on your rate, term, loan size, commission structure and evidence.

Who may qualify for a Blue Motor Finance refund

You could be eligible for Blue Motor Finance compensation if:

• Your agreement was made between 6 April 2007 and 1 November 2024.
• A dealer or broker did not clearly disclose commission or the way it affected your rate.
• Your APR looked higher than expected without a good explanation.
• PCP or HP terms were not explained in a way you could understand.
• The overall relationship feels unfair given the disclosure and pricing.

Outcomes usually focus on returning overpaid interest that flowed from the pricing model. In many cases there can also be a refund of undisclosed commission and simple interest on the total redress.

Step by step: how to start a Blue Motor Finance claim

You can do this yourself for free, ask a solicitor, or appoint a finance claims expert. The steps are the same.

Step 1. Gather your documents

Find your signed agreement, pre-contract credit information, any showroom quotes, emails or texts, and payment statements. If items are missing, ask Blue Motor or the dealer for copies. Include your agreement number if you have it.

Step 2. Sense-check the numbers

Note the APR, term, total repayable and any fees. If this was a PCP, write down the optional final payment, mileage limit and excess mileage rate. Compare these figures with what you remember being told at the point of sale.

Step 3. Explain what went wrong

Keep it short and factual. Examples you can adapt:

• “I was not told the dealer’s commission could increase when my interest rate increased.”
• “My APR seemed high for my credit profile and no clear reason was given.”
• “Key PCP features, including the optional final payment and mileage charges, were not explained in a way I could understand.”

Say what you want to happen. A fair review in line with FCA policy. A Blue Motor Finance refund of overpaid interest and any undisclosed commission where appropriate. Simple interest on redress. Correction of unfair credit markers.

Step 4. Send your complaint

Use email, post or the lender’s web form. Keep copies of everything and note the date sent. A simple timeline helps if you later involve the Financial Ombudsman Service.

Step 5. Wait for the timetable

Normally a firm has eight weeks to issue a final response. Commission-related responses are paused until 4 December 2025. Submitting now ensures your case is logged and ready for review when that date passes.

Step 6. Escalate if you disagree

If you are unhappy with the outcome or do not receive one once the pause lifts, you can refer the case to the Financial Ombudsman Service within six months of the final response. The Ombudsman is independent and free. It can instruct a lender to pay redress if it upholds your complaint.

Evidence that helps reviewers decide faster

• Finance agreement and pre-contract credit information
• Dealer quotes or finance illustrations
• Emails and letters with the dealer or Blue Motor
• Bank statements showing repayments and any settlement figures
• Notes of calls with dates and names
• Any message that mentions commission, choice of lender, or why a rate was set

Perfect records are rare. Send what you have and request copies of what you do not.

DIY, solicitor, or finance claims expert

Different routes suit different people. Here is a quick comparison.

Do it yourself

• Best for: straightforward agreements when you have most documents.
• Cost: free.
• What you do: gather evidence, write the complaint, track deadlines, and respond to the lender.

Solicitor

• Best for: complex or defended cases.
• Cost: often a percentage of redress and sometimes additional legal costs.
• What they add: legal advice if litigation is needed.

Claims management company

• Best for: standard Blue Motor Finance claims when you want end-to-end help or have missing paperwork.
• Cost: typically 18 to 36 percent including VAT, on a no win, no fee basis.
• What they add: document tracing, a structured complaint, and day-to-day correspondence with the lender or Ombudsman.

Using help does not increase eligibility. It can reduce admin and make sure your Blue Motor Finance compensation request is complete.

Key dates and what to expect next

• 18 November 2025: FCA consultation closes
• 4 December 2025: Pause on commission-related final responses expected to end
• Early 2026: Final FCA rules and policy statement expected
• 31 July 2026: Proposed deadline for lenders to issue final responses
• Late 2026: Redress payments likely to begin

Filing your complaint now means your Blue Motor Finance claim is in the queue and ready for assessment under the new framework.

Frequently Asked Questions

Can I start a Blue Motor Finance claim now?

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

Does this apply to both PCP and HP?

Yes. The consultation covers PCP, HP and other regulated agreements within the date range.

How much could I receive?

The market-wide estimate is around £700 per eligible agreement. Your result can be higher or lower depending on your contract and evidence.

Can I claim if my agreement has ended?

Yes. Finished or settled agreements can still qualify if they fall within the covered dates.

Do I have to pay to make a claim?

No. You can complain directly for free and use the Ombudsman for free. If you prefer support, you can appoint a finance claims expert or a solicitor. Always check FCA authorisation and fee terms.

What if my paperwork mentions a Blue Motor Finance DCA?

That refers to a discretionary commission arrangement. If a DCA influenced your pricing and you were not properly told, it may help your Blue Motor Finance claims case.

Is there anything unique about Blue Motor Finance cars in this process?

No. The scheme applies to qualifying finance agreements regardless of vehicle make. What matters is how the finance was arranged and disclosed.

Compliance and clarity

• Refunds are not guaranteed and depend on individual facts.
• Market averages are estimates, not entitlements.
• You can complain directly to the lender or through the Financial Ombudsman Service at no cost.
• If you use a representative, ensure they are FCA-authorised and their fees are clear before you sign.
• Final FCA rules are expected in 2026 and may refine parts of the process.

Final thoughts

Opaque incentives and inadequate explanations meant some customers overpaid. The FCA’s consultation is intended to correct that in a fair and consistent manner. If your loan had a Blue Motor Finance discretionary commission, very high commission structure or restricted choice of lenders, you have a reasonable basis to request a review.

Start by gathering your documents and writing a clear, calm account of what happened and why it mattered. If you want help, a finance claims expert can organise the evidence and manage the steps for you. Whether you go DIY or ask for support, a well-prepared Blue Motor Finance claim gives the reviewer what they need to assess your position properly and decide on any Blue Motor Finance compensation you may be due.

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References:

1. the Financial Conduct Authority (FCA) opened a national consultation to deliver consistent redress for mis-sold car finance across the UK market - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. Based on the FCA’s modelling, total market redress could reach up to £8.2 billion, with a typical payment of around £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
3. The FCA has already banned these structures for new lending - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
4. In August 2025, the Supreme Court confirmed that commission is not automatically unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
5. To keep outcomes consistent, commission-related final responses are paused until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints