The FCA's estimate
When it finalised the scheme in March 2026, the FCA estimated that around 12.1 million agreements would be treated as unfair, and that lenders would pay about £7.5 billion in compensation. That's an average of about £830 per agreement, including interest.
An average hides a wide range. Some people will get a few hundred pounds, some several thousand, and some agreements won't qualify at all. Anyone who promises you a set amount before looking at your agreement can't know it.
What affects how much you get
- How much commission was paid. Higher commission usually means more compensation.
- How much you borrowed and for how long. Bigger, longer loans carried more interest.
- Your interest rate. The scheme estimates how much extra interest you paid using an APR adjustment of 17% (Scheme 2) or 21% (Scheme 1).
- How long ago it was. Interest is added to compensate you for the time you've been without the money.
- How many agreements you had. Each agreement is assessed separately, so several cars on finance can mean several payments.
How the calculation works
For most agreements, compensation is the average of two figures: the commission the dealer was paid, and the estimated extra interest you paid. Interest is added, and the result is capped at the lowest of three limits, including 90% of the commission plus interest.
Where commission was very high (at least 50% of the cost of credit and 22.5% of the loan) and there was also an undisclosed tie or discretionary commission, you get all the commission back with interest, with no cap. That's the approach the Supreme Court took in Mr Johnson's case.
What you keep if you use a claims company
Complaining yourself is free. If you use Consultation Claims, they take a fee from any compensation, banded by the amount received. These are the maximums, before VAT:
| Compensation received | Fee up to | Maximum fee |
|---|---|---|
| £1 – £1,499 | 30% | £420 |
| £1,500 – £9,999 | 28% | £2,500 |
| £10,000 – £24,999 | 25% | £5,000 |
| £25,000 – £49,999 | 20% | £7,500 |
| £50,000+ | 15% | £10,000 |
VAT is added at the current rate. You see the fee before you sign anything. Full fees.
Sources
Checked on 7 October 2026 against:
Questions people ask
Is there a car finance compensation calculator?
Not a reliable one. The scheme's formula needs your actual commission, APR and payment schedule, which only your lender holds. Treat any calculator that gives you a figure without those as a guess.
Will I get interest on top?
Yes. Compensation under the scheme includes interest for the time you've been without the money.
If I had three cars on finance, do I get three payments?
Each agreement is assessed separately, so you could get compensation for each one that qualifies.
You don't have to use a claims management company. You can complain to your lender, and then to the Financial Ombudsman Service, for free.