Stellantis Financial Services UK has increased its provision for historic car finance commission costs to £221.3 million [1], as the potential cost of the industry's motor finance compensation programme pushed its UK finance business into a loss.

Accounts for the year ending 31 December 2025, filed at Companies House on 30 September 2026, show the provision increased sharply from £37.1 million at the beginning of the year.

The UK finance business reported a £69.3 million pre-tax loss for 2025, reversing a £69.4 million pre-tax profit in the previous year.

Stellantis Financial Services warned that significant uncertainty remains over the eventual cost of historic motor finance commissions and that the final outcome could differ materially from the amount currently provided.

The accounts have emerged as the motor finance industry awaits the outcome of legal challenges to the FCA's Motor Finance Consumer Redress Scheme.

Why has Stellantis set aside £221.3m?

The £221.3 million represents an accounting provision for the potential costs associated with historic motor finance commission arrangements [2].

It is a substantial increase from the £37.1 million provision recorded at the start of 2025.

The provision reflects the company's current estimate of its potential exposure, rather than Stellantis compensation that has already been paid or a confirmed final bill.

That distinction is particularly important while parts of the FCA's motor finance redress scheme [3] remain affected by legal proceedings.

Stellantis Financial Services itself has cautioned that significant uncertainty remains around the ultimate cost and that actual outcomes could differ materially from its current provision.

The eventual cost could therefore be higher or lower than £221.3 million.

Stellantis UK finance business falls to a loss

The increased motor finance provision had a major impact on the company's financial performance.

Stellantis Financial Services UK reported a £69.3 million pre-tax loss for 2025, compared with a £69.4 million profit in 2024 [4].

The results underline the financial significance that historic motor finance commission issues have assumed for some of Britain's largest vehicle lenders.

Stellantis Financial Services is the UK finance operation associated with Stellantis, whose vehicle brands include Peugeot, Citroën, Vauxhall, Fiat and Jeep.

Its UK finance business is also connected with BNP Paribas through the wider ownership structure.

What is Stellantis Financial Services?

The current company name may not be familiar to everyone who previously financed a vehicle through one of its brands.

Stellantis Financial Services UK Limited was previously known as PSA Finance UK Limited before changing its name in April 2023.

Its published complaints information lists a number of brands and trading names, including PSA Finance UK, Peugeot Financial Services, Citroen Financial Services, Vauxhall Finance and Stellantis Financial Services.

That history matters for consumers looking through old paperwork because an older agreement may carry a different finance brand from the company's current name.

However, having an agreement with one of these brands does not by itself mean a customer is entitled to compensation.

Eligibility ultimately depends on the agreement and the rules governing the FCA's motor finance claims redress process.

Commission complaints have risen sharply

Separate complaints data published by Stellantis Financial Services illustrate the scale of consumer interest surrounding historic motor finance commissions.

For the six months from July to December 2025, the company recorded 600,919 credit-related complaints opened.

Stellantis Financial Services said it had experienced a significant increase in complaint volumes as a result of the FCA's industry-wide review of motor finance commission arrangements and the proposed consumer redress scheme. Its published data identifies commissions as the main cause of credit-related complaints opened during the period.

The figure should not, however, be interpreted as 600,919 successful car finance compensation claims.

A complaint being recorded does not establish that an agreement meets the FCA's eligibility criteria or that compensation will ultimately be payable.

The number also should not be directly compared with the number of finance agreements without taking account of how complaints are recorded. Stellantis reported approximately 306,700 credit-related agreements during the same six-month reporting period.

Does £221m mean customers will receive £221m?

No confirmed conclusion can be drawn from the provision about how much individual customers will receive.

An accounting provision represents management's estimate of an expected financial obligation based on information available when the accounts are prepared.

It is not a compensation fund that can simply be divided among customers.

Individual Stellantis car finance claims will depend on factors including whether the relevant agreement falls within the scope of the FCA scheme and whether the applicable unfairness and loss criteria are satisfied.

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

Potentially unfair arrangements covered by the scheme include certain discretionary commission arrangements, high commission and undisclosed ties between lenders and brokers.

The FCA has estimated average redress of around £829 per eligible agreement across the industry [5]. That is an industry-wide estimate rather than a guaranteed payment for Stellantis customers or any other individual borrower.

What about older PSA Finance agreements?

Consumers with older paperwork may recognise the PSA Finance name rather than Stellantis Financial Services.

The company's previous name means some historic agreements potentially relevant to the motor finance review may have been entered into under PSA Finance UK or another associated finance brand.

This does not change the basic eligibility test.

An agreement being associated with PSA Finance, Peugeot, Citroën, Vauxhall or another Stellantis-related finance brand is not, on its own, evidence of mis-selling or entitlement to compensation.

Consumers should therefore avoid assuming that the £221.3 million provision confirms the validity or value of an individual PSA Finance claim.

Legal challenge continues to affect compensation timetable

The FCA established its Motor Finance Consumer Redress Scheme in March 2026, but parts of the programme were subsequently suspended by the Upper Tribunal while legal challenges are considered.

The litigation has affected the timetable for calculating and paying compensation.

Stellantis Financial Services tells customers that compensation assessments and payments under the FCA scheme are currently on hold while the legal process continues.

However, firms are still required to comply with aspects of the scheme that have not been suspended.

Consumers can also still submit a complaint if they believe they may have been affected. Stellantis Financial Services provides an online motor finance commission enquiry process and states that consumers do not necessarily have to submit a complaint to be included in the scheme.

What does this mean for Stellantis car finance mis-selling claims?

The latest accounts provide evidence of the scale of the potential financial exposure Stellantis Financial Services is preparing for, but they do not determine the outcome of individual complaints.

The £221.3 million provision should therefore be viewed as the company's current accounting estimate rather than a confirmed compensation bill.

Consumers who believe an old finance agreement may have involved a relevant commission arrangement can make a complaint directly to their lender for free.

They can also choose to seek professional support through an FCA-regulated claims management company or a solicitor, although fees may apply.

Consumers with older agreements may need to check whether their paperwork refers to PSA Finance UK, Peugeot Financial Services, Citroen Financial Services, Vauxhall Finance or another relevant trading name rather than Stellantis Financial Services.

What happens next?

The increase from £37.1 million to £221.3 million shows how substantially Stellantis Financial Services' assessment of its potential motor finance exposure changed during 2025.

It also contributed to a dramatic reversal in the UK finance company's reported financial performance, from a £69.4 million pre-tax profit to a £69.3 million loss.

But the final financial impact remains uncertain.

The outcome of the legal challenges to the FCA car finance scheme could affect how the redress process proceeds, while individual consumers will still need to satisfy the relevant eligibility requirements before compensation is determined.

For motorists with potential Stellantis mis-sold car finance claims or older PSA Finance claims, the latest provision is therefore an important indication of the scale of the issue, but it should not be treated as confirmation that a particular agreement qualifies or that a specific amount of compensation will be paid.

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References:

1. Stellantis Financial Services UK has increased its provision for historic car finance commission costs to £221.3 million - https://bmmagazine.co.uk/finance/stellantis-car-finance-scandal-provision/
2. The £221.3 million represents an accounting provision for the potential costs associated with historic motor finance commission arrangements - https://www.thetimes.com/business/companies-markets/article/stellantis-car-loans-mis-selling-scandal-200m-m0523z0xp
3. FCA's motor finance redress scheme - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
4. Stellantis Financial Services UK reported a £69.3 million pre-tax loss for 2025, compared with a £69.4 million profit in 2024 - https://motester.co.uk/stellantis-221m-car-finance-compensation/
5. The FCA has estimated average redress of around £829 per eligible agreement across the industry - https://www.fca.org.uk/publication/policy/ps26-3.pdf