The Financial Conduct Authority (FCA) has issued an urgent public safety alert [1]: that scammers are cold-calling consumers, falsely claiming payouts under the car finance scandal–related redress schemes are available. These fraudsters are demanding sensitive personal details, including name, address, date of birth, and banking information, under the guise of facilitating compensation. The regulator emphasises clearly: there is no compensation scheme in place yet, and lenders are not contacting customers. Anyone receiving such a call should hang up immediately and refrain from sharing any information.

Context: The Supreme Court Ruling and Redress Scheme Underway

This warning arrives amid substantial developments within the motor finance sector. The Supreme Court recently ruled that approximately 14 million people were mis-sold car finance between 2007 and 2021 [2]. However, confidence in the sector is low: only 23% of people trust lenders to handle payouts fairly [3]. Concerns are heightened by the fact that 57% of potential claimants have moved home since their finance began, making contact and claim tracing difficult, and over 8 million have lost paperwork, further complicating the process.

The FCA is preparing a large-scale redress scheme that may cost lenders between £9 billion and £18 billion [4], although individual payouts are likely to be £950 per claim [5]. The House of Lords has urged the FCA to consider shortening the claim window [6] to six years, the time limit under the Consumer Credit Act, in order to reduce complexity and make it fairer.

Role of Claims Firms in the Current Landscape

Whilst FCA is expected to consult in early October [7] on a potential industry-wide redress scheme, some consumers may want to lodge their own claims directly. However, many still turn to claims management companies (CMCs) for support, especially when they are unsure about the process, have moved home, or no longer have the original paperwork.

CMCs can help to do the communications with lenders, to ensure all relevant information is provided and deadlines are monitored. Some consumers find this service provides reassurance, particularly if they feel anxious about being dealt with by the same lender who may have mis-sold their finance product.

Consumers can of course claim on their own behalf without professional help. If a consumer uses an authorised claims firm, they will be working with a firm who knows the rules and requirements for supporting documentation, and how to move cases forward efficiently. This may be particularly useful if the case is more complex, involves more than one lender, or where there is some missing information.

In this fraught environment, individuals seeking guidance on car finance claims or PCP claims may wonder where to turn.

-> Why Reclaim247 Could be Your Ally in the Quest for Fair Redress

If you’re one of the many affected by the car finance scandal, there is a free, FCA-authorised resource available: Reclaim247.co.uk. Whether you're grappling with misplaced paperwork, uncertainty about your lender, or discomfort trusting the lender to manage your claim, a finance claims expert can help. All it needs is your name, address and date of birth: no paperwork, no need to provide your car registration and it's no win, no fee. Claims are handled by solicitors so you are properly represented.

Summary of Key Developments

• Scam calls alert - FCA has instructed consumers to hang up on fraudsters if they make compensation scheme calls.
• Supreme Court ruling - widespread mis-selling revealed; up to 14 million potential victims across 2007–2021
• Trust deficit - Only 23% trust lenders to handle payouts fairly; many have moved or lost paperwork
• Compensation scheme - FCA planning redress for mis-sold deals; £9–18 billion total, individual payout typically under £950.
• House of Lords input - recommends trimming timeline to six years to simplify access and compliance.

Conclusion: Stay Vigilant and Act with Caution

The ongoing coverage of the car finance scandal means that there will be more people getting cold calls/messages about compensation. Remember to stay wary of these, and only contact a firm via an approved route, or use a managed service, like Reclaim247.

In short:

• Don’t fall for scam calls: hang up and report them to Ofcom by forwarding them to 7726.
• Maintain your records and ensure you are up to date with any official FCA announcements.
• If you have been impacted and require assistance with your claim. You can search for authorised finance claims specialist services to assist you with your car finance claims or PCP claims as you can through Reclaim247.

Stay safe, and know your rights.

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1. The Financial Conduct Authority (FCA) has issued an urgent public safety alert - https://www.fca.org.uk/news/news-stories/beware-car-finance-scam-calls-fca-warns
2. The Supreme Court recently ruled that approximately 14 million people were mis-sold car finance between 2007 and 2021 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. only 23% of people trust lenders to handle payouts fairly - https://www.slatergordon.co.uk/newsroom/consumers-trust-the-financial-conduct-authority-to-resolve-the-car-finance/
4. £9 billion and £18 billion - https://www.reuters.com/business/finance/uks-fca-proposes-9-billion-18-billion-pound-redress-scheme-motor-finance-claims-2025-08-03/ 
5. payouts are likely to be £950 per claim - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator
6. The House of Lords has urged the FCA to consider shortening the claim window - https://www.ft.com/content/79fbb099-9391-43a2-8ccc-0ad7875064c1
7. FCA is expected to consult in early October - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme