Updated: 28 October 2025

Originally Published: 01 February 2025

​

Buying a Mercedes should feel exciting. For many drivers, the finance piece made that possible, with monthly payments through Personal Contract Purchase, known as PCP, or Hire Purchase, known as HP. In 2025, a lot of Mercedes owners are revisiting those agreements and asking a simple question: was my Mercedes finance agreement sold in a way that was clear and fair?

The Financial Conduct Authority is consulting on a national redress scheme that aims to deliver consistent outcomes for customers who overpaid because of poor disclosure or conflicted sales incentives. If you used Mercedes-Benz Financial Services for a PCP or HP between 6 April 2007 and 1 November 2024, you may be able to bring a Mercedes finance claim. This guide explains the latest position, how to recognise a mis-sold deal, what Mercedes finance compensation can include, and the exact steps to submit a Mercedes car finance claim with confidence. You can complain yourself for free, escalate to the Financial Ombudsman Service, or work with a regulated finance claims expert if you want hands-on help. Outcomes are not guaranteed. Across the market, typical refunds are expected to average around £700 per eligible agreement, but your result will depend on your contract and evidence.

​

Why more drivers are bringing a Mercedes claim

For years, dealerships offered quick approvals and handed the servicing of the loan to the lender. The convenience was real. The concern is how some deals were priced and explained at the point of sale. Many customers now say important details were not set out in a meaningful way, especially around commission.

The issue that appears most often is the Mercedes-Benz Finance discretionary commission model. In these arrangements, the broker or dealership could influence the interest rate you were offered. If the rate went up, the broker’s commission went up as well. Many customers were never told how that incentive worked, or that it could change their cost of credit. The FCA banned these arrangements for new loans in 2021 [1]. Older contracts are now being reviewed to check whether customers paid more than they should.

If your payments felt high for your credit profile and no one explained why, a commission structure may sit behind that result. That is the reason so many people are exploring a Mercedes commission claim today.

​

2025 developments that affect a Mercedes finance claim

Three milestones set the tone for the coming year.

Supreme Court ruling in August 2025 [2]

The Court confirmed that commission by itself is not automatically unlawful. It also confirmed that if the commission was hidden, excessive, or raised the customer’s costs, the relationship can still be unfair under the Consumer Credit Act. In practice, that keeps many Mercedes Benz finance claim cases alive when disclosure was weak or the pricing was influenced by commission.

FCA complaint pause through 4 December 2025 [3]

To deliver consistent decisions once the scheme is ready, the FCA paused final responses on commission-related cases. You can still submit a Mercedes claim today. It will be logged and can be assessed when the pause ends.

National redress consultation opened in October 2025 [4]

The FCA is consulting on a single process that would apply across the market for agreements made between 6 April 2007 and 1 November 2024. Final rules are expected in early 2026, with compensation payments expected later in 2026.

​

The FCA’s categories of unfair agreements

Your Mercedes car finance compensation may fall into one or more of these categories, which the consultation highlights across all lenders.

Discretionary commission arrangements

The dealership could set or influence your rate and earn more if it rose. Most customers were not told how that incentive worked. This is often the core of a Mercedes Benz finance discretionary commission complaint.

High commissions

Some agreements paid unusually large commissions to the broker. The FCA’s yardsticks include levels such as 35 percent or more of the total cost of credit, and 10 percent or more of the loan amount. Very high commissions can distort the sale even if “a commission may be paid” appeared in small print.

Restricted lender access

In some showrooms, quotes came from a single lender without a genuine comparison. If you were steered only to a Mercedes finance agreement without alternatives being explained, the sale may have limited your choice.

​

Simple signs your Mercedes finance was mis-sold

You do not need to be a finance specialist to spot warning signs. Many drivers discover them by re-reading their paperwork with fresh eyes.

• No one clearly told you that the dealer would receive a commission, or how that could affect your rate.
• Your APR felt high for your credit standing and there was no clear reason.
• You were offered only one route, the in-house plan, and not given time to compare.
• For PCP, the balloon payment, mileage limits, and end-of-term costs were not explained in plain language.
• Admin or option-to-purchase fees appeared that you do not remember being discussed.
• You were encouraged to sign the same day, without time to think.

If two or more points ring true, a Mercedes finance PCP claim or HP complaint is worth considering.

​

Who may qualify for Mercedes finance compensation

You could be eligible if:

• You had a PCP or HP with Mercedes-Benz Financial Services between 2007 and 2024.
• The dealership did not meaningfully disclose commission or how your rate was set.
• Your interest rate or costs were higher than expected without a good explanation.
• Key PCP features were not explained in a way you could understand.
• The overall circumstances point to an unfair relationship under the Consumer Credit Act.

Finished agreements can qualify. You can bring a Mercedes PCP claim or HP claim even if the car has been sold. What matters is the fairness of the sale and the clarity of the information provided at the time.

​

How compensation is likely to be calculated

The FCA proposes a hybrid approach that looks at two elements. First, the commission paid to the broker. Second, the extra interest you likely paid because the commission influenced your rate. The goal is to reflect the real-world impact on the customer.

• Typical outcomes. Around £700 per eligible agreement across the market, based on current FCA modelling [5].
• High-impact cases. Where commissions were very high or wholly undisclosed, and your costs were clearly affected, the proposals include returning the commission with interest.
• Other adjustments. Refunds can include unfair fees and credit file corrections. Redress is often topped up with simple interest at the Bank of England base rate plus one percentage point.

These figures are market-wide estimates, not promises for any single Mercedes Benz finance claim.

​

Step by step: how to make a Mercedes car finance claim

You can handle this yourself or ask for help. The steps are the same either way.

Step 1. Request your documents

Ask for your agreement, pre-contract information, and any commission disclosures. The lender or dealership should be able to provide copies if you have misplaced them.

Step 2. Sense-check the numbers

Write down the APR, the monthly payment, the total repayable, and all listed fees. If this was PCP, include the balloon payment, mileage cap, and excess mileage charge. Compare what is written to 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 my interest rate. I believe this increased my costs.”
• “The PCP balloon payment and mileage terms were not explained in a way I could understand.”
• “I was offered only the in-house plan and not given time to compare alternatives.”

State what you want. A review in line with FCA policy. A Mercedes finance refund of overpaid interest and any undisclosed commission where applicable. Interest on any redress. Correction of unfair markers on your credit file.

Step 4. Submit the complaint

Send it by email, post, or through the lender’s website. Keep copies and note the date. A simple timeline helps if you later involve the Ombudsman.

Step 5. Wait for the process to move

Firms normally have eight weeks to respond. Final responses on commission-related cases are paused until 4 December 2025. Submitting now ensures your Mercedes-Benz finance claim is logged and ready for assessment once the pause ends.

Step 6. Escalate if needed

If you disagree with the outcome, you can refer the 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 successful Mercedes finance compensation package can include

If your Mercedes-Benz finance PCP claim or HP claim is upheld, redress may include:

• Refund of overpaid interest caused by a discretionary commission model.
• Repayment of undisclosed commission paid to the dealer.
• Refund of unfair fees or charges, for example admin or option-to-purchase fees that were not explained clearly.
• Simple interest on the refund, usually at the Bank of England base rate plus one percentage point.
• Credit file corrections linked to the mis-sold agreement.

Average awards across the market sit near £700, but the figure for your Mercedes commission claim can be higher or lower based on the loan size, term, and the level of commission.

​

DIY or use a finance claims expert

Both routes can work. Choose the one that fits your time, paperwork, and comfort level.

​

Do it yourself

• Best when your file is simple and you have your documents.
• Free, with full control over the timeline and wording.

Finance claims expert or solicitor

• Helpful if your case is complex, you have missing paperwork, or you prefer end-to-end 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 authorised by the FCA for claims management activity. Read the agreement so you know what you will pay and when.

Using a representative does not change eligibility. It can reduce admin and help present a clear file.

​

Evidence checklist

Send what you have today, then add more as it arrives.

• The Mercedes finance agreement and pre-contract credit information
• Dealer quotes or finance illustrations
• Emails or letters with the dealership or lender
• Payment statements and any settlement figures
• Notes of calls, with dates and names
• Bank statements showing payments if lender statements are missing

It is common to start with partial records. The reviewer can request further information as needed.

​

Key facts at a glance

• Covered period: 6 April 2007 to 1 November 2024
• Products in scope: PCP, HP and other regulated agreements
• Typical outcome across the market: Around £700 per eligible agreement
• 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
• Common issues: Mercedes-Benz Finance discretionary commission, high commissions, restricted choice, unclear PCP terms

Frequently Asked Questions

Can I start a Mercedes 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 only apply to PCP?

No. The scheme covers Mercedes finance PCP claim and HP complaints within the covered dates.

Can I claim if my agreement has ended?

Yes. Settled or finished agreements can still qualify if they meet the criteria.

How much might I receive?

Market-wide modelling suggests an average of about £700 per eligible agreement. Your outcome depends on your documents, the size of your loan, and the commission structure used.

Do I need a professional to help me?

No. You can complain for free to the lender and use the Ombudsman for free. Some people prefer a finance claims expert or solicitor to manage the paperwork and deadlines.

What if my complaint mentions discretionary commission?

If your rate was influenced by a Mercedes-Benz Finance discretionary commission and that was not explained clearly, it can strengthen your Mercedes-Benz finance claim.

​

Compliance and clarity

• Refunds are not guaranteed. Every Mercedes claim depends on the facts of that agreement.
• Average figures are estimates, not entitlements. Your redress can be higher or lower.
• You can complain directly for free, or use the Financial Ombudsman Service for free.
• If you appoint a representative, ensure the firm is FCA-authorised and that fees are clear.
• Final FCA rules are expected in 2026 and may adjust parts of the process.

Final thoughts

Car finance should be transparent. For some customers, it was not. Hidden incentives and unclear explanations mean certain drivers may have paid more than they needed to. The FCA’s consultation aims to fix that with one process that treats everyone fairly.

If your agreement involved a discretionary commission, a very high commission structure, or limited access to alternatives, you have a sensible reason to ask for a review. Start by gathering your documents. Write a calm, factual account of what happened and why it mattered to your costs. If you prefer support, a regulated finance claims expert can assemble the file and manage the steps for you.

Whether you go DIY or use professional help, a well-prepared Mercedes car finance claim or Mercedes Benz Finance PCP claim gives the decision maker what they need to assess your position properly. If your first attempt does not succeed, the Ombudsman route exists for a fresh look. The aim is simple. A fair Mercedes finance compensation outcome that reflects what you should have paid under a clear and honest agreement.

_________

References:

1. The FCA banned these arrangements for new loans in 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
2. Supreme Court ruling in August 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. FCA complaint pause through 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
4. National redress consultation opened in October 2025 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme 
5. Typical outcomes. Around £700 per eligible agreement across the market, based on current FCA modelling - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme