Updated: 9 April 2026

Originally Published: 29 March 2025

If you have ever taken out Honda finance, there is a growing chance your agreement is now being reviewed under new FCA rules.

This is not because something has changed about your car. It is because something has changed about how car finance itself is being assessed.

For years, finance agreements were treated as standard. Customers focused on affordability. Monthly payments were agreed. The process felt routine.

What many did not see was how those agreements were built behind the scenes.

That is now the focus of the FCA car finance review.

So the question is no longer just about affordability.

It is whether your Honda car finance agreement was structured fairly, and whether you could now be entitled to compensation.

Why Honda finance is part of the car finance scandal

Honda finance agreements, including PCP deals, are typically arranged through dealerships rather than directly with the lender.

That model creates a layer between the customer and the finance provider.

The dealership introduces the agreement, explains the terms, and finalises the paperwork. At the same time, it often receives commission linked to the finance.

This is where the issue begins.

In many Honda finance PCP claims:

• commission was included but not clearly explained
• interest rates could be influenced within a range
• customers were not fully aware how pricing decisions were made

This does not mean every agreement was mis-sold. It means many agreements are now being reassessed to determine whether the outcome was fair.

What the FCA car finance changes mean in 2026

The key shift in 2026 is structure.

Previously, mis-sold car finance complaints were handled individually with inconsistent outcomes. Some were upheld. Others were not. Many customers were unsure why.

The FCA has now introduced a central redress scheme that applies across lenders [1], including those behind Honda finance agreements.

This framework sets out:

• how car finance claims are reviewed
• what counts as car finance mis-selling
• how car finance compensation is calculated
• when payouts are expected

This means a Honda finance claim is now part of a much larger, coordinated process.

The scale of Honda and wider car finance claims

This is not limited to one brand.

Across the UK:

• around 12.1 million agreements are under review
• estimated compensation is around £7.5 billion [2]
• total industry cost exceeds £9 billion

This reflects a systemic issue, not isolated cases.

Honda claims sit within this wider review, which is why so many customers are now revisiting agreements they thought were straightforward.

How the FCA scheme applies to Honda finance claims

To handle this volume, the FCA has divided claims into two timelines.

Scheme 1

Agreements from 6 April 2007 to 31 March 2014:

• Implementation runs until 31 August 2026
• Decisions follow within three months
• Payments typically arrive in early 2027
• Average compensation around £734

Scheme 2

Agreements from 1 April 2014 to 1 November 2024:

• Implementation runs until 30 June 2026
• Decisions expected by September 2026
• Payments begin from late 2026
• Average compensation around £881

Final deadline to claim

If you have not yet raised a Honda finance claim, the final deadline is 31 August 2027.

You still have time, but earlier claims are expected to move through the process faster.

What may have been unclear in your Honda finance agreement

Most customers remember agreeing to a monthly figure.

What they may not remember is how that figure was created.

In many cases:

• the interest rate was not fully explained
• commission was not clearly disclosed
• alternative lenders were not presented

These gaps form the basis of many Honda car finance claims today.

Types of Honda finance mis-selling

The FCA has identified three key categories that apply across the market.

Discretionary commission arrangements

This is the most common issue.

Dealers could adjust interest rates within a set range, increasing commission as rates increased.

Estimated average compensation: around £810

Contractual ties

Dealers may have had preferred relationships with specific lenders.

Customers may not have been shown alternative finance options.

Estimated average compensation: around £807

Excessive commission

Some agreements involved unusually high commission levels.

These cases are less common but often result in higher payouts.

Estimated average compensation: £1,200 or more

Why compensation varies between Honda claims

Not all Honda compensation claims result in the same outcome.

Some customers receive no payout. Others receive several hundred pounds. A smaller group receive significantly more.

The difference depends on:

• how the agreement was structured
• how much commission was involved
• the financial impact on the customer

Who is eligible for a Honda finance claim?

Eligibility is often wider than expected.

You do not need to know exactly what went wrong with your agreement to check if you qualify.

You may be eligible if:

• commission was not explained
• the interest rate felt high
• you were not offered multiple options
• the agreement was rushed
• you relied on the dealer’s recommendation

You may still qualify even if:

• the agreement has ended
• you settled early
• you no longer own the vehicle

When eligibility is less likely

Some agreements may not qualify.

This can include:

• interest-free deals
• agreements with minimal commission
• cases where no financial disadvantage exists

Do you need proof to make a Honda claim?

No.

You are not required to prove mis-selling.

The lender reviews your agreement using FCA criteria and determines whether compensation is due.

This is why many people start with a car finance refund check or speak to a finance claims expert to better understand their position.

What happens during a Honda finance claim

A Honda claim follows a structured process.

The lender assesses:

• how the agreement was priced
• how it was explained
• whether the outcome was fair

This removes the need for complex arguments or legal knowledge.

Starting with a car finance refund check

A car finance refund check is usually the first step.

It allows you to:

• understand whether your agreement may qualify
• begin the process without full paperwork
• decide whether to proceed

Many people choose to use a finance claims expert at this stage for convenience and guidance, although it is not required.

How Honda finance compensation is calculated

A Honda finance refund is not a full repayment.

It is designed to correct financial disadvantage.

This typically involves:

• comparing what you paid to what you should have paid
• calculating the difference
• adding interest

This is why compensation varies between claims.

Payouts 2026 and expected timelines

Payouts 2026 refers to when claims begin to be processed at scale.

For many Honda claims:

• decisions start from late 2026
• payments follow shortly after
• some cases extend into 2027

How long does a Honda PCP claim take?

This depends on timing.

If you submit early:

• your claim may be processed sooner
• you are likely to fall within earlier decision groups

If you wait:

• your claim may take longer
• timelines may extend into 2027

Are Honda finance customers receiving refunds?

Not all customers will receive compensation.

Each agreement is assessed individually.

If unfairness is identified, a Honda compensation payment may be made.

Frequently Asked Questions

How do I know if I can make a Honda finance claim?

You could potentially make a Honda finance claim if key aspects of your agreement were not explained.

This can include where you weren’t told about commission, it was unclear about the interest rate or you were not shown other finance options. You do not need to work out what the problem is, the lender will review your agreement according to the FCA rules.

Do I claim now or wait?

You do not need to do anything straight away as lenders are contacting customers whose agreements are under review.

But by claiming early you are more in control and have a better sense of timing. If you wait you may still get compensation but it is likely to take longer and the timing is more uncertain.

What are Scheme 1 and Scheme 2 in car finance claims?

Scheme 1 and Scheme 2 are two groups that car finance claims have been split into by the FCA, based on when the agreement was started.

Scheme 1 covers agreements from April 2007 to March 2014. These claims are expected to be paid out later, with most payments stretching into early 2027.

Scheme 2 covers agreements from April 2014 to November 2024. These claims are expected to be processed first, with many payouts in 2026 starting from late 2026.

When will I receive my Honda payout?

Successful claimants should receive their Honda payouts from late 2026.

Most claimants should receive their payouts between late 2026 and early 2027. In more complex cases, it may take longer for the full value of your claim to be processed and paid out to you.

How long will it take to make a Honda PCP claim?

It depends when you make your claim. The vast majority of Honda PCP claims are expected to be paid out from late 2026 through to the first quarter of 2027. Complex claims may take longer.

How much Honda compensation will I get?

The amount of compensation will vary and depends on the terms of your agreement.

The average payout across the market is around £829 [3] but this can be higher where the financial impact was greater or there was a higher level of commission paid.

Do I get a full refund of car finance?

No, the FCA scheme is designed to put you back in the position you should have been had there been no financial disadvantage. This is not the same as cancelling your agreement. This means you will typically receive the difference between the amount you paid and the amount you should have paid plus interest.

Do I need a finance claims expert?

No. You can make a Honda claim directly to the lender free of charge.

Some consumers decide to use a finance claims expert because it is convenient and someone else can manage the process or explain the outcome to them. It is not a requirement and does not impact the decision.

Do I need paperwork to make a claim?

No. Lack of paperwork is not usually an issue.

The lender is required to keep records of agreements so they will be able to obtain the information themselves.

Can I make a claim if my Honda agreement has finished?

Yes. Whether an agreement is still open or not does not determine if a claim can be made.

If you have paid in full, paid off early or the vehicle is no longer yours, you may still be entitled.

Will Honda customers be automatically refunded?

No. Automatic compensation will not be paid to all customers.

Each agreement will be assessed on its own merits against FCA criteria. If your agreement is identified as unfair, then you may be entitled to a car finance refund or a PCP refund. If it is not, then no refund will be payable.

When is the deadline to make a Honda finance claim?

The FCA has set a final deadline of 31 August 2027 for submitting complaints.

This is the final date if you haven’t yet made a claim. If you do, it’s best to do it sooner to avoid delays.

Can I make a claim on behalf of a deceased person?

Yes. The FCA scheme still applies if the original customer has died.

If you’re an executor or beneficiary, you can make a claim using your own details and including information about the person who has died.

What if my Honda claim is turned down?

If the claim is rejected, you will be able to read through the reasons given by the lender.

You can usually appeal against their decision if you feel it was not made in line with the FCA rules.

You may also be able to escalate the complaint further if you are unhappy with the outcome.

I can't find my car finance agreements - can I still claim?

If you’re not sure where your Honda finance agreement is, or if you no longer have the paperwork, there are a few ways to track it down.

First of all, check your bank statements or emails. These may include the name of the finance provider, so you can approach them. If not, you can get a copy of your credit report from the agencies like Equifax, Experian or TransUnion. Your report should include a list of both current and past car finance agreements, as well as key information.

You can also contact Honda Financial Services with your personal details. As Honda is likely to have a record of the agreement, they may also be able to locate it.

Alternatively, if you want a faster option, a car finance refund check or a finance claims expert will usually be able to trace it based on just your name, address, and approximate dates. Many PCP claims companies provide this as part of their initial check, so you don’t have to have everything in place before starting.

What this means for Honda drivers

The shift in 2026 is not just about compensation. It is about visibility.

For the first time, there is a consistent way to look back at how car finance agreements were structured and assess whether the outcome was fair.

For Honda customers, this changes the starting point. You do not need to rely on assumptions or try to interpret the agreement yourself. The framework now exists to do that for you.

Some agreements will lead to compensation. Others will not. The key difference is that the process is now defined, and the outcome is based on clear criteria rather than uncertainty.

If you want to understand where you stand, the most practical step is to check your agreement and see how it fits within the FCA scheme.

From there, you can decide whether to move forward with a claim, or simply have clarity on your position.

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References:

1. The FCA has now introduced a central redress scheme that applies across lenders  - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
2. estimated compensation is around £7.5 billion - https://www.fca.org.uk/publication/policy/ps26-3.pdf
3. The average payout across the market is around £829  - https://www.dailymail.co.uk/money/cars/article-15691403/FCA-says-12MILLION-829-payouts-car-finance-compensation.html