Updated: 23 October 2025

Originally Published: 26 March 2025

Buying a car is a big commitment. For many drivers, CA Auto Finance UK Ltd helped make it possible with Personal Contract Purchase (PCP) or Hire Purchase (HP) plans that kept monthly payments predictable. In 2025, a lot of people are taking a fresh look at those plans and asking a fair question: was the deal I signed truly clear and good value?

The Financial Conduct Authority (FCA) is consulting on a national redress scheme that aims to deliver consistent outcomes for customers who overpaid because of discretionary commissions or unclear selling practices. If you took out finance with CA Auto Finance UK or a dealer offering a CA car finance package between 6 April 2007 and 1 November 2024, you may have grounds to bring a CA Auto Finance claim.

This guide keeps things practical. You will learn why some CA Auto car finance agreements are under review, how to spot common signs of mis-selling, what the FCA is proposing for compensation, and how to start a complaint confidently. You can do this yourself for free, escalate to the Financial Ombudsman Service, or get support from a finance claims expert if you prefer help. Nothing here guarantees a result. Typical redress across the market is expected to average around £700 per eligible agreement [1], but every case turns on its own facts and evidence.

Why CA Auto Finance UK is being reviewed

For years, CA Auto Finance UK Ltd partnered with showrooms around the country to provide quick, convenient approvals. Many customers liked the speed and simplicity. The concern raised by the regulator is not that car finance is wrong in itself, but that some deals may have been priced or presented in a way that was not fully transparent.

At the centre of the issue is the use of discretionary commissions. Under a CA Auto Finance discretionary commission model, a dealership could influence the interest rate you were offered. The higher the rate, the higher the dealer’s commission. Many customers believed the lender set the rate based only on their credit and the vehicle. In reality, the broker could move the rate and earn more.

You can see how that creates a conflict. What boosts a broker’s commission can increase the customer’s monthly payment. That is why the FCA banned discretionary commission models for new agreements from 2021 [2]. Older agreements are now being reviewed to check if customers paid more than they should have. That review has led to a rise in CA Auto Finance complaints and to drivers asking for clear answers and, where appropriate, refunds.

What changed in 2025

Three milestones shape the landscape for CA Auto Finance UK customers this year.

Supreme Court guidance in August 2025

The Supreme Court confirmed that commission is not automatically unlawful. It also confirmed that if a commission was hidden, excessive, or pushed the cost up for the customer, the arrangement can still be unfair under the Consumer Credit Act. That keeps the door open for CA Auto Finance mis-sold finance complaints where disclosure was weak or the pricing was influenced by commission.

FCA complaint pause until 4 December 2025

To avoid inconsistent outcomes while the redress scheme is designed, the FCA has paused final responses on commission-related complaints until 4 December 2025 [4]. You can still submit a CA Auto Finance claim now. Doing so ensures your complaint is logged and ready to be assessed once the pause ends.

FCA consultation on a national scheme

In October 2025, the FCA opened a six-week consultation [5] on a single process for calculating refunds and handling eligibility. The scope covers agreements between 6 April 2007 and 1 November 2024. Final rules are expected in early 2026, with payments anticipated to follow later in the year. The goal is simple. One clear approach. Consistent outcomes across the market, including for CA Auto Finance UK and CA Finance customers.

How the FCA Defines Unfair Car Finance Agreements

Under the FCA’s 2025 consultation, a car finance agreement may be considered unfair if it falls into one of three main categories [6]. These are the key areas the regulator will review when determining whether a CA Auto Finance claim qualifies for compensation.

1. Discretionary Commission Arrangements

This issue is at the heart of most CA Auto Finance commission complaints. Under a discretionary commission model, the dealership could set or influence the interest rate and earn more if that rate increased.

Many customers were never told that this was happening or how it affected their repayments. As a result, they may have paid higher interest than justified by their credit score or lender criteria.

If your agreement involved a CA Auto Finance discretionary commission, this is likely the category under which your complaint would fall.

2. High Commissions

Some dealers or brokers received unusually large commissions for arranging finance. Even when a contract stated that “a commission may be paid,” the amount could still make the agreement unfair if it was excessive.

The FCA’s guidance suggests that commissions equal to 35 percent or more of the total cost of credit, or 10 percent or more of the total loan amount, are strong indicators that the sale may have been influenced by the broker’s financial incentive rather than the customer’s best interest.

If your dealer earned a large commission from your CA Auto Finance UK agreement and this was not explained clearly, it could strengthen your CA Auto Finance claim.

3. Restricted Lender Access

In some dealerships, customers were offered finance from only one provider without being told that other options existed. This practice is known as restricted lender access.

If you were steered only toward a CA Auto Finance UK Ltd or CA Finance product without a genuine comparison, the sale may have limited your choice.

The FCA considers this unfair because it restricted your ability to make an informed decision and may have led to higher costs or less favourable terms.

Signs your CA Auto Finance agreement may have been mis-sold

You do not need to be a finance specialist to spot warning signs. Many people notice them only when they sit down with the paperwork again.

• Commission was not explained. No one clearly told you the dealer would earn a commission from CA Auto Finance UK, or how that commission could affect your rate.
• Rate felt high for your credit. Your APR seemed higher than expected and there was no good reason given.
• Only one option. You were offered only a CA Auto Finance UK Ltd plan without a real chance to compare alternatives.
• Pressure to sign. You were encouraged to agree on the day or told the offer would disappear quickly.
• PCP details were unclear. Balloon payments, mileage limits, or early termination rules were not explained in plain English.
• Hidden charges. You later discovered administrative fees or option-to-purchase costs that you do not remember being discussed.

If two or more points ring true, your agreement could fall within the FCA categories the consultation is targeting. Submitting your CA Auto Finance complaint now ensures it is ready for review when the framework goes live.

Who can make a CA Auto Finance claim

You may be eligible if any of the following apply.

• You took out PCP or HP with CA Auto Finance UK, CA Finance, or a dealer offering a CA car finance plan between 2007 and 2024.
• The dealer did not clearly disclose commission or how your interest rate was set.
• Your rate was higher than you expected for your credit standing.
• You were not given time or information to compare lenders.
• You felt rushed, misled, or unsure about key costs when you signed.

You can still claim if your agreement is finished or the vehicle has been sold. The question is whether the sale created an unfair relationship or lacked proper disclosure.

How compensation is likely to be calculated

The FCA proposes a hybrid method that looks at two things. First, the commission that was paid to the broker. Second, the extra interest you are estimated to have paid because of that commission. The aim is to reflect the real world impact on the borrower, not just the number printed on a commission invoice.

• Typical outcome. Across the market, the current estimate is around £700 per eligible agreement.
• High-impact cases. Where commissions were high or wholly undisclosed and the pricing impact was clear, proposals include the full return of the commission with interest.
• Other adjustments. Refunds can also include unfair fees and simple interest on the redress amount.

These figures are market-wide estimates, not promises for a single CA Auto Finance claim. Your outcome depends on your contract, your rate, how long you borrowed, and the evidence in your file.

Step by step: how to make a CA Auto Finance complaint

You can do this yourself for free. If you want help, a finance claims expert or solicitor can manage the process, but using a representative is your choice, not a requirement.

Step 1. Gather your documents

Look for your signed agreement, pre-contract credit information, quotes or finance illustrations, payment statements, and any emails or letters with the dealer or lender. If you are missing documents, ask CA Auto Finance UK Ltd for copies.

Step 2. Sense-check the numbers

Write down the APR, the monthly payment, the total amount repayable, and any fees. If this was a PCP, note the balloon payment, mileage allowance, and excess mileage charge. Compare these figures with what you remember being told.

Step 3. Explain what went wrong

Keep your complaint short and factual. For example:

• “I was not told that the dealer’s commission varied with the interest rate and believe this increased my costs.”
• “PCP balloon and mileage terms were not explained in a way I could understand.”
• “I was offered only a CA Auto Finance plan and not given a chance to compare alternatives.”

Say what you want to happen. A fair review under FCA policy. A CA Auto Finance refund of overpaid interest and any undisclosed commission if applicable. Simple interest on any redress. Correction of unfair credit markers.

Step 4. Send your complaint

Use email, post, or the online form on the lender’s site. Keep copies of everything and note the date sent. A clear timeline helps if you later go to the Ombudsman.

Step 5. Wait for the process to move

In normal times, firms have eight weeks to respond. Final responses on commission-related matters are paused until 4 December 2025. Sending your complaint now ensures your CA Auto Finance claim is logged and ready for assessment once the pause ends.

Step 6. Escalate if you disagree

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

What a CA Auto Finance refund can include

If your complaint is upheld, a CA Auto Finance compensation package can include:

• Overpaid interest linked to a discretionary commission model.
• Repayment of undisclosed commission paid to the broker or dealer.
• Refunds of unfair fees, such as administrative or option-to-purchase charges, where disclosure was poor.
• Simple interest at the Bank of England base rate plus one percentage point on any money returned.
• Credit file corrections where markers were linked to an unfair agreement.

Average awards across the market are around £700, but the figure for a single file can be higher or lower depending on the loan size, term, and the level of commission.

Should you use a finance claims expert or go DIY

You have two workable routes. Neither guarantees success. Choose based on your time, paperwork, and comfort with the process.

Do it yourself

• Free, with full control.
• Good for straightforward, recent agreements when you have your documents.
• You draft the complaint, chase the timeline, and escalate if needed.

Finance claims expert or solicitor

• Helpful for complex cases, missing paperwork, or if you prefer hands-off support.
• Often work on a no win, no fee basis. Typical fees range from 18 to 36 percent including VAT of any redress.
• Must be FCA-authorised for claims management activity. Read the client agreement carefully so you know the fee structure and when it applies.

Using a representative does not change your eligibility. It can reduce admin, keep your file organised, and make sure deadlines are met.

Evidence checklist

Send what you have today. Ask for copies of what you do not.

• Finance agreement and pre-contract credit information
• Showroom quotes or finance examples
• Emails, letters, or text messages with the dealer or CA Auto Finance UK
• Payment statements and any settlement figures
• Brief notes of calls, including dates and names
• Bank statements showing repayments if you lack lender statements

It is common to begin with partial records. You can add documents as the review progresses.

Key facts at a glance

• Covered period: 6 April 2007 to 1 November 2024
• Products in scope: PCP, HP, and other regulated CA Auto car finance agreements
• Common issues: Discretionary commissions, hidden fees, unclear PCP terms
• Typical market outcome: Around £700 per eligible agreement, case by case
• Complaint pause ends: 4 December 2025
• 31 July 2026: Proposed deadline for lenders to issue final responses
• Final FCA rules expected: Early 2026
• Payments expected to begin: Later in 2026

Frequently Asked Questions

Can I make a CA Auto Finance claim now?

Yes. You can submit a complaint today. Final responses on commission issues are paused until December 2025, but logging your case now ensures it is ready to be reviewed.

Does this cover both PCP and HP?

Yes. The consultation covers CA Auto car finance products including PCP and HP within the date range.

Can I claim if my agreement has ended?

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

Do I need to pay to complain?

No. You can complain directly to CA Auto Finance UK for free and use the Financial Ombudsman Service for free. If you choose a representative, make sure the firm is FCA-authorised and the fees are clear.

What if I do not have my paperwork?

Ask CA Auto Finance UK Ltd for copies. Lenders are used to these requests and should provide the key documents.

Does mentioning a CA Auto Finance discretionary commission help my case?

If your agreement involved a DCA and that structure increased your cost, it can strengthen the basis of your CA Auto Finance claim.

Compliance and clarity

• Refunds are not guaranteed and depend on the facts of each agreement.
• Market averages are not entitlements. Your outcome can be higher or lower.
• You can complain for free directly or through the Ombudsman.
• If you appoint help, use an FCA-authorised firm and check the fee model.
• Final FCA rules are expected in 2026 and may adjust parts of the process.

Final thoughts

Car finance should be clear and straightforward. For some customers, it was not. Hidden incentives and limited explanations meant certain drivers may have paid more than they needed to. The FCA’s consultation is designed to fix that with a single system that treats everyone fairly.

If your agreement involved a CA Auto Finance discretionary commission, unclear PCP terms, or restricted access to alternatives, you have a sensible reason to ask for a review. Start by gathering your documents. Write a short, honest account of what happened and why it mattered to your costs. If you want support, a finance claims expert can help organise the evidence and manage the steps for you.

Whether you go DIY or use professional help, a well prepared CA Auto Finance complaint gives the reviewer what they need to assess your position properly. If your first attempt does not succeed, the Ombudsman route exists for a fresh look. The goal is simple. A fair CA Auto Finance refund or CA Auto Finance compensation that reflects what you should have paid under a transparent agreement, and a better experience for future borrowers across CA Auto Finance UK and the wider market.

_________

References:

1. Typical redress across the market is expected to average around £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
2. the FCA banned discretionary commission models for new agreements from 2021 - https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models
3. The Supreme Court confirmed that commission is not automatically unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
4. the FCA has paused final responses on commission-related complaints until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. In October 2025, the FCA opened a six-week consultation - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
6. a car finance agreement may be considered unfair if it falls into one of three main categories - https://www.fca.org.uk/publication/consultation/cp25-27.pdf