Motor Finance Redress Calculator

Car finance claim calculator

Calculator
Redress Breakdown

Agreement details

Date the lump sum was paid

This calculator uses illustrative defaults for APR and commission – APR 12% and Commission 8% of the loan.

If you know your APR and/or Broker Commission Paid, CLICK HERE TO REFINE YOUR ESTIMATE
FCA Scheme Estimate
£0.00

How your FCA estimate is worked out

A simple step-by-step reconciliation of the headline figure.

Updated: 19 October 2026

The FCA scheme is suspended until after February 2027. Lenders do not currently have to calculate or pay compensation. Read the latest update. Court action is unaffected. You can still proceed with legal action which may achieve higher compensation than the FCA Scheme. The calculator shows the higher amount that could be possible. Consult a Law Firm for best advice.

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Not sure who your lender actually is? The brand on your agreement is often a dealer or manufacturer, not the lender who owes you redress. Find your lender from 700+ car finance brands →

What is the motor finance redress scheme?

Following the FCA’s review of historic motor finance commission, the FCA Consumer Redress Scheme (PS26/3) sets out how lenders must calculate and pay compensation to customers who were not told about commission paid to a car dealer or broker. This free motor finance redress calculator gives you an instant estimate of what that redress could be worth, using the published methodology.

Who may be eligible for motor finance compensation?

Your car finance (PCP, hire purchase or a similar agreement) may be in scope if it was:

  • arranged through a car dealer or broker who received commission;
  • taken out between 6 April 2007 and 1 November 2024; and
  • set up without the commission being clearly explained to you.

Finance taken out directly with a lender, with no broker commission, falls outside the scheme. The calculator will flag when your answers fall outside the scheme’s dates or scope.

How is motor finance redress calculated?

Under PS26/3 the redress is built from up to three parts, and this tool mirrors that approach:

  • Commission refund – the commission your lender paid the broker;
  • APR adjustment – the extra interest you paid because your rate was higher than it should have been;
  • Compensatory interest – added to reflect the time since you paid.

Open the Redress Breakdown tab to see every step of your estimate reconciled in plain English.

How to use the calculator

  1. Tell us how your finance was arranged and roughly when.
  2. Enter the amount of credit and the term – or tick “Don’t know” to use typical figures.
  3. If you settled early, add the settlement date.
  4. Read your FCA estimated redress, then open the breakdown to see how it is worked out.

If you know your actual APR or the commission paid, use the override link to replace the default assumptions with your own figures for a closer estimate.

Frequently asked questions

Is this motor finance redress calculator free?

Yes. This free consumer tool is provided by RedressIQ. You can use it as many times as you like without appointing a claims company.

Do I need a claims company to get motor finance compensation?

No. You can deal with your lender directly, for free, and keep 100% of any redress. A claims company would typically take a fee for work you can do yourself.

What dates does the FCA scheme cover?

The scheme covers motor finance agreements taken out between 6 April 2007 and 1 November 2024. Agreements outside that window are not covered.

How accurate is the estimate?

It is an estimate based on the details you enter and default assumptions for APR and commission. Your lender holds the exact figures, so your actual redress may be higher or lower. If an offer looks significantly different without explanation, you can ask your lender why.

What is a discretionary commission arrangement (DCA)?

A DCA let the broker or dealer adjust your interest rate, which could increase the commission they earned at your expense. These arrangements are a key focus of the FCA redress scheme.

How much car finance compensation could I get?

It depends on your loan amount, term, interest rate and the commission your lender paid. There is no fixed figure – this car finance compensation calculator provides an instant, personalised best estimate so you can make informed decisions about any claim you make. The more specific the data you provide, the more accurate the estimate will be.

Which lenders are covered by the scheme?

Most major motor finance lenders fall within the FCA scheme – for example Black Horse, Close Brothers, MotoNovo and Santander, among many others. What matters is your individual agreement (an undisclosed or discretionary commission), not the lender alone.

Does PCP or hire purchase (HP) qualify?

Yes. PCP, hire purchase and similar car finance agreements can be in scope if they were arranged through a dealer or broker who earned commission. A personal loan you arranged yourself to buy a car is different.

Practical resources

Guides

About RedressIQ, methodology and calculator assumptions

Car finance refunds by lender

This calculator gives an estimate, not a confirmed payment. How estimates work and why your lender's figure may differ.