Renault's UK finance business has set aside £219.2 million for potential car finance compensation after reporting its first annual pre-tax loss in 26 years.

RCI Financial Services, which provides vehicle finance for Renault and Nissan customers, recorded a £110.4 million pre-tax loss in 2025, compared with an £8.7 million profit the previous year [1].

The figures were revealed in accounts filed at Companies House on 6 October 2026 and reported by The Times on 11 October.

The lender added another £150 million to its provision for historic motor finance commission costs, bringing the total to £219.2 million.

The latest figures show how the UK car finance scandal continues to affect lenders, with more companies putting money aside to cover potential compensation costs.

For those who previously financed a Renault or Nissan, the news may be a reason to take another look at their old agreements. Some may be eligible for compensation, although the £219.2 million does not tell us how many customers could receive a refund or how much they might get. It is simply RCI Financial Services' current estimate of what the issue could cost.

Why has Renault's finance business set aside £219.2 million?

The provision relates to concerns over commissions paid to car dealers for arranging vehicle finance.

For years, some dealers could earn more commission by increasing the interest rates customers paid. Other arrangements involved unusually high commissions or financial relationships between dealers and lenders that were not properly disclosed.

These commission arrangements are at the heart of the ongoing car finance mis-selling controversy.

In March 2026, the Financial Conduct Authority (FCA) introduced its Motor Finance Consumer Redress Scheme [2] to help determine which agreements qualify for compensation and how much affected customers could receive.

For lenders such as RCI Financial Services, the FCA car finance compensation scheme has also meant having to work out how much they may need to pay customers whose agreements are found to qualify.

The company had already recognised a substantial provision in its previous accounts. It has now increased that amount by a further £150 million, taking the total to £219.2 million.

RCI has cautioned that the figure remains its best estimate and that the eventual cost could be different.

It is worth distinguishing between a provision and an actual compensation payment. The £219.2 million has been recognised in the company's accounts to cover potential costs. It does not mean that the same amount has already been paid out or that every historic agreement qualifies.

RCI Financial Services records first annual loss since 1999

The financial impact on Renault's UK finance business has been considerable.

RCI Financial Services went from making an £8.7 million pre-tax profit in 2024 to reporting a £110.4 million loss in 2025.

It was a significant turnaround for the business. According to The Times, the company had not reported an annual pre-tax loss since 1999, the year Renault acquired the UK finance operation from Nissan following an agreement between the two carmakers.

The lender had already faced pressure in 2024, when it recorded a £73.6 million provision relating to historic motor finance commissions.

Its latest accounts show how much further the estimated costs have increased.

Other major lenders have also reported substantial provisions, but RCI's results stand out because the estimated cost of the motor finance issue has contributed to its first annual pre-tax loss in more than two decades.

Does the provision also affect Nissan Finance claims?

Although the headlines focus on Renault, RCI Financial Services provides finance under several different trading names.

These include Renault Finance, Nissan Finance and Dacia Finance.

The company was previously known as Nissan Finance (GB) Limited before changing its name to RCI Financial Services Limited in 2007.

That history matters for anyone trying to identify an older finance agreement. Someone who financed a Nissan years ago, for example, may find that their paperwork refers to Nissan Finance rather than RCI Financial Services.

The same applies to customers looking into Renault Finance claims or Dacia Finance claims.

However, having an agreement with one of these brands does not automatically mean it was mis-sold.

Eligibility for car finance compensation depends on the lender involved, the commission arrangement and whether the agreement meets the relevant criteria.

The provision therefore does not establish that all Renault, Nissan or Dacia customers are entitled to a car finance refund.

Other lenders are also setting aside millions

RCI's £219.2 million provision is the latest in a series of financial disclosures from companies involved in the UK motor finance market.

Volkswagen Financial Services UK recently confirmed a £725 million provision [3], while BMW Financial Services has reportedly set aside £611.6 million [4].

Stellantis Financial Services UK, associated with brands including Peugeot, Citroën and Vauxhall, has increased its provision to £221.3 million [5] while MotonNovo has set aside £220.3 million [6].

Close Brothers has also recognised a motor finance provision of approximately £320 million [7].

Together, these figures show the scale of the potential costs facing lenders as they prepare for the FCA's redress scheme.

However, the amounts are not a measure of which companies were responsible for the most mis-sold car finance agreements.

Each lender has its own history of finance arrangements, customer agreements and assumptions about potential liabilities.

A larger provision does not necessarily mean that more customers will qualify for compensation or receive higher refunds.

What does this mean for Renault car finance claims?

For anyone who financed a Renault several years ago, the latest accounts may be a reason to check whether their agreement falls within the FCA's scheme.

The scheme covers certain regulated motor finance agreements entered into between 6 April 2007 and 1 November 2024.

It addresses qualifying cases involving discretionary commission arrangements, excessive commissions or undisclosed ties between lenders and brokers.

Someone who took out Renault Finance during that period may therefore have an agreement worth checking.

The same applies to potential Nissan Finance claims and Dacia Finance claims where RCI Financial Services was responsible for the lending.

However, being within the relevant dates is not enough on its own.

Not every agreement involved an unfair commission arrangement, and the FCA's scheme includes additional requirements that must be satisfied before compensation is payable.

For motorists concerned about mis-sold car finance, the important starting point is identifying the agreement and understanding whether the commission arrangements may fall within the scheme.

How much compensation could Renault and Nissan customers receive?

The FCA estimates that eligible consumers could receive an average of approximately £829 per agreement [8] under the wider motor finance compensation scheme.

However, this is an industry-wide estimate, not a guaranteed Renault car finance refund or a fixed amount for Nissan Finance customers.

The compensation payable would depend on the individual agreement, the commission arrangement involved and the calculation required under the applicable rules.

Some customers could receive more than the estimated average, others less, while some agreements may not qualify at all.

RCI's £219.2 million provision also cannot be used to work out how much an individual customer might receive.

It represents the company's estimate of its potential overall financial exposure, rather than a confirmed total of successful car finance claims.

Will the FCA legal challenge affect Renault car finance compensation?

It is still unclear when motorists will start receiving compensation under the FCA's scheme, as several legal challenges have yet to be resolved.

Volkswagen Financial Services, Mercedes-Benz Financial Services, CA Auto Finance and Consumer Voice are challenging different parts of the scheme [9]. In July 2026, the Upper Tribunal temporarily suspended some of its requirements [10], including those relating to customer communications, compensation payments and reporting.

Lenders are still expected to carry on with the parts of the scheme that remain in force, but the legal proceedings have put some of the planned steps on hold.

RCI Financial Services is not directly involved in these challenges. However, because the scheme applies across the motor finance industry, the outcome could still affect how Renault and Nissan car finance claims are handled.

For customers waiting to find out whether they are owed compensation, the uncertainty is likely to be frustrating. Until the legal challenges are resolved and the next steps become clearer, there is no confirmed date for when eligible Renault and Nissan customers might receive payments.

Can consumers still make Renault or Nissan car finance claims?

Yes. Motorists can still raise complaints about commission arrangements on older car finance agreements, even while the legal challenges are ongoing.

This can be done directly to the lender themselves, free of charge. Consumers can also use the services of an FCA-regulated claims management company or solicitor to help them, but this could cost money.

Consumers don’t need to have kept the original paperwork to make a claim. If they took out the agreement many years ago, they may still be able to trace the lender using historic finance firms list or via an agreement tracing service.

This could be useful where an older agreement was issued under Nissan Finance, Renault Finance or another trading name.

However, finding an agreement is only the first step. It does not automatically mean the finance was mis-sold or that compensation is due.

Consumers should also check the FCA's current eligibility requirements and complaint deadlines before deciding how to proceed.

What happens next for Renault car finance compensation?

RCI Financial Services' latest accounts show how significantly its estimated costs for historic motor finance commissions have increased.

The lender has now recognised a £219.2 million provision and reported its first annual pre-tax loss in more than two decades.

For consumers following Renault car finance claims, Nissan car finance claims or other agreements linked to RCI Financial Services, the disclosure confirms that the lender is preparing for potentially substantial costs.

However, the provision does not establish how many agreements will qualify, how much compensation individuals may receive or when payments will begin.

Those questions will depend on the final operation of the FCA scheme, the outcome of the legal challenges and the circumstances of each finance agreement.

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References:

1. RCI Financial Services, which provides vehicle finance for Renault and Nissan customers, recorded a £110.4 million pre-tax loss in 2025, compared with an £8.7 million profit the previous year - https://www.thetimes.com/business/companies-markets/article/renault-uk-finance-arm-loss-car-loan-scandal-8s60zbr90
2. In March 2026, the Financial Conduct Authority (FCA) introduced its Motor Finance Consumer Redress Scheme - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
3. Volkswagen Financial Services UK recently confirmed a £725 million provision - https://www.ft.com/content/ad767b0a-d6c4-4728-b82d-56a33154ddd8
4. BMW Financial Services has reportedly set aside £611.6 million - https://www.telegraph.co.uk/business/2026/09/22/bmw-facing-600m-hit-from-car-mis-selling-scandal/
5. Stellantis Financial Services UK, associated with brands including Peugeot, Citroën and Vauxhall, has increased its provision to £221.3 million - https://bmmagazine.co.uk/finance/stellantis-car-finance-scandal-provision/
6. MotonNovo has set aside £220.3 million - https://www.cityam.com/motonovo-hikes-motor-finance-provision-as-buyers-circle-aldermore/
7. Close Brothers has also recognised a motor finance provision of approximately £320 million - https://www.independent.co.uk/news/business/shares-b2953640.html
8. The FCA estimates that eligible consumers could receive an average of approximately £829 per agreement - https://www.fca.org.uk/publication/policy/ps26-3.pdf
9. Volkswagen Financial Services, Mercedes-Benz Financial Services, CA Auto Finance and Consumer Voice are challenging different parts of the scheme - https://consumervoice.uk/cars/fca-car-finance-compensation-challenge/
10. In July 2026, the Upper Tribunal temporarily suspended some of its requirements - https://www.fca.org.uk/news/statements/motor-finance-scheme-partially-suspended