23 million people expecting car finance scandal compensation

The poll*, conducted for consumer law firm, Slater and Gordon, found that 45% of people believe they are likely to be eligible for some sort of compensation over motor finance deals signed between 2007 and 2021.

Regulators and courts have found that many of the car finance deals signed in that period did not properly inform consumers about charges and commission. Consumer groups estimate that motorists took out more than 30 million car loan deals over those years.

The Supreme Court will this month issue a final ruling on the scope of the problem, after which the Financial Conduct Authority may set up a formal redress scheme for lenders to compensate consumers.

The survey, carried out by the pollsters Find Out Now, suggests that public expectations over the car finance issue are running very high. Slater and Gordon said those expectations could create challenges for the Financial Conduct Authority in designing any redress scheme.

The FCA has suggested it may set up the redress scheme in a way that reduces the scope for consumers to hire lawyers to make claims on their behalf.

Instead, the regulator could ask the lenders who carried out the mis-selling to check their records and decide who gets compensation. Less than a quarter (23%) of people say they would trust the lenders to do this fairly.

Slater and Gordon backed the idea of a redress scheme, but warned that the FCA’s plans risk widespread disappointment and a potential backlash unless it is carefully constructed to ensure consumers are protected from missing out. 40% of poll respondents said they would consider taking legal action to challenge the redress scheme if they are unhappy with the outcomes.

The Slater and Gordon polling, undertaken by Find Out Now in June 2025, had a sample size of more than 4,000.

It found that:

• Public expectations of compensation are high. 45% of all respondents said they believe they are likely to be eligible for compensation over car finance agreements. This equates to more than 23 million adults across the UK.
• These high expectations could make it harder to resolve the issue quickly and cleanly. 40% of people would consider a legal challenge if they are dissatisfied with redress outcomes.
• There is strong trust in the FCA over car finance. 62% of respondents said they trust the FCA to resolve their issues fairly.
• There is solid trust in law firms. 40% trust “an independent lawyer who only gets paid if you win”. 50% want to have the option to hire a law firm over car finance issues.
• People do not trust lenders to fix the scandal. Only 11% said they would trust lenders. Only 23% trust banks and lenders to follow the rules and check records over redress.

The polling also suggests that a redress scheme that relies on lenders to identify and trace victims of mis-selling could miss out significant numbers of people who should get compensation.

Among respondents who believe they are entitled to compensation, 57% said they had moved house at least once during the claims period, something that might make it impossible for lenders to contact them for redress.

And 13% of potential claimants said they changed their legal name during the claims period, which could also make them hard to reach for redress.

In addition, 36% of potential claimants - 8.4 million people – said they have lost at least some of the paperwork on their previous car finance deals.

Elizabeth Comley, Chief Operating Officer of Slater and Gordon, said:

“The public have very high expectations on the car finance scandal. They rightly expect to be compensated for their losses. The FCA is trying put things right but there’s a risk that a redress scheme leaves many people disappointed and keen to challenge the process. That sort of backlash would be bad for everyone – the scandal would drag on for years, the courts would be inundated with challenges and the public would be denied the clear resolution they want.

“The FCA is trusted by the public to resolve this issue, but the public will not support putting decisions on redress in the hands of the lenders responsible for mis-selling – people just don’t trust the wrongdoers to decide who gets compensation.

“An FCA redress scheme that relies on the lenders responsible for mis-selling to identify people who get compensation would mean many people miss out, perhaps because they have moved address or changed their name and the lenders can no longer find them. That would be unacceptable and fuel public cynicism.”

“The best way to ensure a redress scheme works well for everyone and resolves this scandal swiftly is to allow people the choice to hire a lawyer to support their claim. Independent professional lawyers work to assemble documents and evidence, pursue people’s rights and ensure they get what’s due to them. Why shouldn’t people have this option if they want it?”

Alex Neill, co-founder of Consumer Voice, said: “People are rightly concerned about the use of secret commissions in car finance. Millions of drivers feel misled and have suffered financial harm – so it’s no surprise that public expectations for compensation are high.

“Our own research shows that two-thirds of consumers would have acted differently if they’d known about dealer commissions, and many remain concerned about how those commissions impact what they pay.

“Most people trust their dealer to get them the best deal; often unaware that the finance offer in front of them may not be the most competitive, or assuming the dealer only profits from selling the car itself. Unlike other financial products, this misplaced trust means consumers rarely shop around. Only 4% told us they compared finance options before signing a deal.

“Any redress scheme must tackle drivers' legitimate distrust of lenders and be built with fairness to consumers at its core. People must be given choice and clear information about their options and the compensation they can expect to receive. Resolving claims quickly is in everyone’s interest, but it must not come at the expense of people being denied proper access to justice.”