Updated: 17 October 2025

Originally Published: 11 November 2024

Millions of motorists are reviewing their car loans after the Financial Conduct Authority (FCA) announced a consultation on a national redress scheme[1]. If you used PSA Finance UK for a PSA car finance agreement, you may have questions about eligibility, timing, and what counts as PSA Finance mis-sold loan. This guide explains the latest developments, how to spot issues in your PSA Finance agreement, and the safe, compliant routes to start a PSA finance claim.

Outcomes are not guaranteed and redress varies by case. Typical payments for eligible agreements are expected to be around £700 per agreement, which can be higher or lower depending on your circumstances. You can complain directly to your lender for free, use the Financial Ombudsman Service, or choose regulated support from finance claims experts.

Key timeline at a glance

• October 2025: FCA opens a six-week consultation on a national redress scheme for motor finance agreements from 6 April 2007 to 1 November 2024.
• 18 November 2025: Consultation scheduled to close and feedback window ends.
• 4 December 2025: Current pause on commission-related final responses remains in place until this date [2]. Complaints can be filed now and will be queued.
• Early 2026: FCA aims to publish final rules and confirm calculation methods for redress.
• 31 July 2026: Proposed deadline for firms to issue final responses on motor finance complaints to support consistency.
• Later in 2026: Payments expected to begin, subject to consultation outcomes and final rules.

Firms are not issuing final responses on commission-related cases until 4 December 2025. If you submit a PSA finance PCP claim [3] now, it will be logged and reviewed once the rules are confirmed.

What has changed in 2025

FCA consultation. In October 2025, the FCA opened a six-week consultation on a national redress scheme covering motor finance agreements from 6 April 2007 to 1 November 2024.

Scope and value. The FCA estimates up to £8.2 billion may be paid across the market if participation is high, with up to 14 million agreements potentially affected [4].

Complaint handling. Firms are not required to give final responses on commission-related complaints until 4 December 2025. The FCA is also consulting on a proposal for firms to provide final responses by 31 July 2026 to support consistent decisions once rules are finalised.

Supreme Court clarity. In August 2025 the Supreme Court confirmed that commission is not automatically unlawful, but hidden or excessive commission can still create an unfair relationship under the Consumer Credit Act [5]. This keeps routes to redress open where disclosure was weak and costs were affected.

The FCA’s three categories of unfair agreements

Your PSA finance claim may fall into one or more of these categories. These definitions come from the FCA consultation and apply across the market, including PSA Finance.

Discretionary commission

Often called PSA Finance discretionary commission, this is where a broker or dealer could vary your interest rate and earn more commission if the rate was higher. Customers were usually not told how the incentive worked. These arrangements were banned for new business in 2021 [6].

High commission arrangements

These are agreements where commission levels were high enough to risk distorting the sale, even if the rate was not adjusted. The FCA highlights structures where commission was 35% or more of the total cost of credit and 10% or more of the loan amount.

Exclusive or restricted lender access

Some brokers offered finance almost entirely from one lender. If you were not given a fair choice, or you were led to believe that option was the only one available, this can be unfair.

If your PSA finance agreement involved any of the above, you may be eligible for PSA finance compensation.

What compensation could look like

The FCA proposes a hybrid method that considers both the commission involved and any interest you overpaid because of that commission.

• Typical outcome. Around £700 per eligible agreement is the market-wide estimate. This is not a promise and your result may be lower or higher.
• Serious cases. Where commission was very high, some proposals include returning the full commission with interest.
• Extras. In appropriate cases, a PSA finance refund can also include a refund of unfair fees and interest on the redress amount. Credit file corrections may apply where markers were linked to an unfair agreement.

We will not speculate on totals for a specific brand or product, since values depend on the terms of each agreement and your individual use of the finance.

Signs your PSA Finance may have been mis-sold

Use this quick sense-check for PSA finance PCP claim review.

• Rate did not make sense. Your APR was higher than expected for your credit profile, and no clear reason was given.
• Commission not explained. You were told little or nothing about broker or dealer commission that might affect your rate.
• Balloon payment confusion. End-of-term costs on PCP were not clearly explained at the start.
• Unclear fees. Admin fees, options to purchase, or early settlement charges were not set out in plain language.
• Limited choice. You were shown only one lender and not told you could shop around.

If several points apply, a PSA car finance claim may be worth pursuing.

How to check your agreement

You do not need to be a specialist to start. Follow these steps for a careful review.

Gather documents

Find your PSA Finance agreement, pre-contract information, any quotes, and emails. If you cannot locate them, ask PSA Finance UK for copies.

Find the APR and the total repayable

Note the APR, the monthly payment, and the total over the full term. Compare this to what you remember being promised.

Look for commission references

Phrases like “we may receive a commission” without substance may not have been enough to help you understand the impact. Make a note of any mention of commission.

Check PCP specifics

If this was a PCP, write down the balloon amount, mileage limit, and any excess mileage rate. Confirm these match what you were told.

Early settlement and fees

See how early settlement works, whether fees apply, and whether these were explained in a way you could reasonably understand.

How to start a PSA Finance claim

You can complain directly, use PSA finance claim online routes if available, or ask finance claims experts to help. Here is a simple, compliant structure.

Step 1. Write your complaint

Explain in plain English why you believe there was PSA finance mis-sold conduct. For example, lack of disclosure of PSA Finance discretionary commission, an interest rate that appeared inflated without explanation, or unclear PCP balloon costs. State the outcome you seek, such as a PSA finance refund of overpaid interest and undisclosed commission, correction of any unfair credit markers, and a fair PSA finance settlement.

Step 2. Send it to PSA Finance UK

Use email, post, or a web form where provided. Keep copies of everything. Your complaint will be logged even though commission-related final responses are paused until 4 December 2025. The pause is to support consistent outcomes once final rules are in place.

Step 3. Keep a timeline

Note dates, names, calls, and emails. If you later go to the Financial Ombudsman Service, a clear timeline helps.

Step 4. Consider support

A regulated claims management company with finance claims experts can prepare a file and manage deadlines. Many work on a No Win, No Fee basis where a success fee of 18 to 36 percent including VAT applies to redress received. This does not guarantee success and you can complain for free without representation.

Step 5. Escalate if needed

If you disagree with the lender’s decision once the pause ends, you can escalate to the Financial Ombudsman Service within six months of the final response. The Ombudsman is independent and free.

Important timing

• You can submit a PSA finance claim now.
• Commission-related final responses are paused until 4 December 2025.
• The FCA aims to publish final rules in early 2026, with payments expected to begin later that year, subject to consultation outcomes.
• The FCA has proposed a 31 July 2026 deadline for firms to issue final responses on motor finance complaints to ensure consistency.
• The scheme covers agreements from 6 April 2007 to 1 November 2024. If your agreement started earlier but was still active after April 2007, it may still be in scope.

There is no need for artificial urgency. Logging your complaint now simply places your case in the queue.

Examples of what to include in your complaint

• Agreement details. Agreement number, product type, dates, monthly instalment, APR.
• What happened. For example, “I was not told that the dealer could change my interest rate in a way that increased their commission,” or “The balloon payment on my PCP was not explained in a way I could understand.”
• Why it matters. For example, “I paid more in interest than I would have if a fair rate had been used,” or “I would have chosen a different product if I had known the commission details.”
• What you want. A fair PSA finance compensation outcome in line with FCA rules, refund of overpaid interest, return of undisclosed commission, interest on redress, and correction of any unfair credit markers.

Using finance claims experts

Working with finance claims experts is optional. Reasons people choose help include missing paperwork, limited time, or a wish to have a professional assemble the evidence. If you prefer to use a representative, check they are authorised and regulated by the FCA for claims management activity, read the client agreement carefully, and make sure the fee structure is clear. You are free to choose a different firm or to proceed alone. Representation does not increase your eligibility, and results are not guaranteed.

PSA Finance claim online: practical tips

• Use a secure connection for uploads.
• Label files clearly, for example “Agreement.pdf” and “Email-to-Dealer-Jan-2019.pdf”.
• Keep original files on your device.
• Save submission confirmations.

Frequently Asked Questions

Can I make a PSA car finance claim if my agreement has ended?

Yes. Historic PCP and HP agreements can still be eligible if they fall within the dates covered by the FCA consultation.

How much PSA finance compensation could I receive?

Market-wide, typical outcomes are expected to be around £700 per eligible agreement. Your figure may be higher or lower depending on loan size, term, and the commission structure. No result is guaranteed.

Do I need to pay a fee to complain?

No. You can complain to PSA Finance UK for free and escalate to the Financial Ombudsman Service for free. If you use a representative, success fees may apply only if redress is secured.

What counts as PSA finance mis-sold?

Examples include undisclosed or poorly explained commission that affected your rate, a discretionary commission that rewarded higher rates, high commission arrangements, and limited choice of lenders without proper explanation.

Is a PSA finance PCP claim treated differently from HP?

Both are in scope. PCP adds factors such as the balloon payment and mileage terms. Any PCP Audi claim or BMW PCP claim you may have seen in the news follows the same FCA principles, and the same applies to a PSA finance PCP claim.

What if my interest rate was fixed and not changed by the dealer?

High commission structures can still be unfair if they distorted the sale. The FCA consultation addresses high commission arrangements as a separate category.

Can I still claim if I settled early and have a PSA finance settlement figure receipt only?

Yes. Provide whatever documents you have. Ask the lender for copies of your original agreement and pre-contract disclosures if needed.

Compliance and your next steps

• Refunds are not guaranteed and depend on individual circumstances.
• Average figures are market-wide estimates, not promises.
• You can file for free or use regulated claims support.
• The FCA consultation may change scheme details before final rules in 2026.

Quick checklist before you submit

• I have my agreement number and copies of key documents.
• I have written a short summary of what happened and why it was unfair.
• I have asked for a refund of overpaid interest and commission, and for any unfair markers to be corrected.
• I understand my complaint will be logged now and processed once the FCA finalises rules.
• I know I can escalate to the Ombudsman if I disagree with the lender’s response.

Final word

If your PSA finance deal involved a PSA finance discretionary commission, a high commission structure, or limited access to alternatives, you could be eligible for a PSA finance refund. You can start a PSA finance claim online now so it is recorded ahead of the FCA’s final rules. Keep expectations realistic, gather evidence, and choose the route that suits you. Whether you proceed alone or with finance claims experts, the goal is the same. A fair PSA finance compensation outcome that reflects what you actually paid and what you should have paid under a transparent, balanced agreement.

_____

References:

1. the Financial Conduct Authority (FCA) announced a consultation on a national redress scheme - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. 4 December 2025: Current pause on commission-related final responses remains in place until this date - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
3. PSA finance PCP claim - https://www.theguardian.com/money/2024/jan/11/car-finance-what-is-the-fca-looking-into-and-will-people-get-money-back
4. The FCA estimates up to £8.2 billion may be paid across the market if participation is high, with up to 14 million agreements potentially affected - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
5. In August 2025 the Supreme Court confirmed that commission is not automatically unlawful, but hidden or excessive commission can still create an unfair relationship under the Consumer Credit Act - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
6. DCAs were banned for new business in 2021 - https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models