FCA PS26/3 explained: the car finance redress scheme

PS26/3 is the FCA policy statement setting out its motor finance consumer redress scheme. It is the source framework for this calculator, but a calculation is not a lender's decision on your agreement.

Where can I read PS26/3?

Read the FCA publication page, the policy statement and rules, and Technical Annex 1. Use the FCA's current consumer guidance alongside the published policy because legal challenges affect the timetable.

What does it mean for my agreement?

The scheme has eligibility conditions, exclusions and different remedies. Start with our eligibility guide; then use your agreement details for an illustrative estimate. Being with a particular lender does not guarantee a refund.

How is compensation estimated?

The hybrid remedy is the midpoint between the APR-adjustment remedy and the commission-repayment remedy, subject to the applicable caps. It is not the larger of the two figures. See the calculation guide for an arithmetic example and the distinction between remedies.

For a practical illustration, our worked calculator examples show how different inputs affect an estimate. The examples use made-up agreements and are not predicted payments.

What should I do now?

Keep your agreement and complaint correspondence. If you have concerns, the FCA recommends complaining to your lender. Our lender lookup helps identify the organisation to contact.

Sources and limitations

See the FCA consumer guidance for eligibility and the current timetable, and our methodology and assumptions for what this estimate can tell you. Checked 19 October 2026.

Last updated: 19 October 2026. This guide is general information, not legal or financial advice.