Stellantis Braces for £37m Hit in the UK

Stellantis Financial Services UK has assured that it has provided a reserve of £37 million to settle any expenses that might be associated with the current car finance scandal [1]. Stellantis, the parent company of PSA in the UK, owns well-known brands including Peugeot, Citroën, and Vauxhall, and now faces mounting financial pressure as the scandal widens. Trade and national press reports that the provision is the company's attempt to pre-empt future compensation liabilities as the full extent of mis-selling becomes clearer.

The move highlights the growing financial pressure facing lenders across the industry. After the UK's top courts have ruled against how many agreements were structured, leading providers are starting to model potential losses that could run into billions. Stellantis is one of the first to publicly quantify the impact, but the move is being seen as a sign that other lenders will soon follow as regulatory deadlines loom.

For consumers, this latest development is why car finance mis-selling claims are making such headlines and causing such concern. The scandal is not only changing consumer trust in the motor finance industry, but it is also potentially unlocking life-changing redress for those who have unknowingly overpaid on their agreements.

How the Supreme Court Ruling Changed the Landscape

The turning point came when the Supreme Court has ruled that many car finance deals were mis-sold [2]. At the heart of the issue were hidden commission models and lack of transparency, leaving drivers with higher costs than they should have paid.

This decision has transformed the landscape for both consumers and lenders. What was once viewed as a niche legal issue has now become a nationwide scandal, often compared to PPI in scale. According to experts, it is not just a question of repayment but a test of whether consumers can trust the same lenders that mis-sold in the first place.

Data shows that only 23% of people trust lenders to handle payouts fairly. To complicate matters further, lenders have already suggested that some records are missing or even deleted. That is critical because 57% of potential claimants have moved house since signing their finance deal, and more than 8 million people no longer have the original paperwork.

This reality is why many consumers are turning to a finance claims expert to guide them through the process. They want reassurance that their claim will not be ignored or delayed, especially when questions such as what happens if a company ignores the ombudsman after a complaint are becoming increasingly common. The answer, in most cases, is that the decision of the ombudsman is legally binding, but having professional support ensures claimants do not face such hurdles alone.

FCA’s Consultation and What It Means for Compensation

The Financial Conduct Authority (FCA) has not been silent either, announcing that it would be putting on hold the deadlines for receiving complaints until December [4] and it is opening a formal consultation process from October. [5] The regulator is considering how a redress scheme should be designed and has hinted at a framework that could mirror previous large-scale consumer compensation programmes.

Industry reports suggest that the average car finance refund for a discretionary commission claim is approximately £950 per agreement, [6] though the final amounts will depend on individual agreements. Projections have estimated the total industry liability to fall somewhere between £9 billion and £18 billion, [7] which is a staggering figure that reflects the depth of the problem.

What’s particularly important is that the FCA expects to pay compensation to millions of mis-sold car finance customers next year. This is a strong signal that consumers should prepare now, rather than waiting for lenders to dictate the terms.

While some money experts have advised people to wait for the FCA’s redress scheme, waiting may not suit everyone. If you are among the millions who have moved house, misplaced paperwork, or simply do not know who your lender was, taking no action could mean missing out. That is why many are turning to specialist firms for guidance, ensuring their voice is heard when claims are processed.

For those following developments closely, resources such as the latest updates on car finance claims in the UK can help track where the regulator and industry stand as deadlines approach.

Should You Consider a Claims Management Company?

Given the sheer scale of the car finance claims scandal, it is unsurprising that thousands of people are exploring support from a claims management company. The FCA has warned consumers to be cautious and to check that any company they work with is properly authorised. Choosing an experienced team can make the process less daunting, especially for those who no longer have their paperwork or cannot recall their lender.

Firms such as Reclaim247 emphasise that consumers do not need paperwork, car registration numbers, or even the name of the lender to begin. All that is required is a name, address, and date of birth. Claims are typically managed on a no-win, no-fee basis, with solicitors handling the legal work. Many people also want to know how long does Reclaim247 take to process a claim. While timelines may vary depending on individual cases and lender cooperation, most claims will move forward promptly once details are submitted, giving consumers peace of mind that action is being taken.

For most, the certainty of having an authorised firm in their corner, fighting on their behalf, will be more comforting than the prospect of uncertainty without one. As the FCA continues to work on its consultation and the redress scheme is developed, having that professional backing could well be the difference between being in the front or back of the queue for compensation.

Final Thoughts

The Stellantis provision is a major development in the car finance scandal as it continues to evolve. With the Supreme Court judgement now out and the FCA on the cusp of publishing its consultation, the next month will see the structure of what could be one of the UK’s largest ever financial redress schemes come into focus.

Whether you are exploring PCP claims, seeking a car finance refund, or simply trying to stay informed, the situation demands attention. If you don't have the paperwork, have moved house or simply do not believe that lenders will play fair, then maybe having a trusted claims management company on your side will offer some clarity and reassurance.

Ultimately, this is about more than money. It is about restoring consumer trust in an industry shaken to its core and ensuring that millions of drivers finally receive the redress they deserve.

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References:

1. Stellantis financial services UK have assured that it has provided a reserve of £37 million to settle any expenses that might be associated with the current car finance scandal - https://www.thetimes.com/business-money/companies/article/stellantis-uk-braces-for-37m-hit-from-car-finance-scandal-9cb6fxrvd
2. The Supreme Court has ruled that many car finance deals were mis-sold - 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. The FCA announced that it would be putting on hold the deadlines for receiving complaints until December - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. The FCA announced a formal consultation process set to open in October - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
6. average car finance refund for a discretionary commission claim is approximately £950 per agreement - https://www.birminghammail.co.uk/motoring/motoring-news/14-million-drivers-could-receive-32193839
7. Projections have estimated the total industry liability to fall somewhere between £9 billion and £18 billion - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme