The Motor Finance Consumer Redress Scheme (redress scheme) is an industry-wide scheme introduced by the Financial Conduct Authority (FCA). It is designed to compensate customers who may have overpaid on motor finance agreements because, in the FCA’s view, certain arrangements (including commission arrangements) between lenders and brokers were not properly disclosed.

The redress scheme covers regulated motor finance agreements that were entered into between 6 April 2007 and 1 November 2024. This includes Conditional Sale, and Personal Contract Purchase (PCP) agreements. There are two separate schemes depending on when your agreement started.

• Scheme 1 covers motor finance agreements that were entered into between 6 April 2007 and 31 March 2014 (inclusive).
• Scheme 2 covers motor finance agreements that were entered into between 1 April 2014 and 1 November 2024 (inclusive).

However, several organizations are challenging the FCA’s motor finance redress scheme through the courts. Because of this, it may take longer than usual to resolve your complaint, and you may not receive an outcome until next year. Once we know more about the timescales, we will update our website with more information.

If you are not due any compensation under the scheme, we will contact you by 18 November 2026 for agreements that started after April 2014, and before 18 January 2027 for agreements that started before April 2014, to let you know.

Your agreement may be eligible for compensation under the redress scheme if it meets all of the following criteria:

1. You had a regulated motor finance agreement entered into between 6 April 2007 and 1 November 2024 (inclusive).
2. Your agreement involved at least one relevant arrangement, such as:

• A discretionary commission arrangement (DCA).
• A high commission arrangement.
• A tied arrangement.

• You have not already had a complaint about the subject matter of the redress scheme considered by the Financial Ombudsman Service (FOS). If you have an open complaint with the FOS, it will be dealt with by the FOS and not under the scheme, unless you are told otherwise.
• You have not already had a claim about the subject matter of the redress scheme determined by a court.
• You have not already received compensation:
  • Under the redress scheme; or
  • Through a full and final settlement of any claims relating to your motor finance agreement.

• Your agreement was not cancelled under a statutory or contractual right of withdrawal.
• Your agreement was not cancelled within an initial notice or cooling-off period.

Unless your agreement meets all of the above conditions, it will not be eligible for review under this redress scheme.

You can still make a complaint about your motor finance agreement by contacting our Commissions Complaints team at [email protected].

A discretionary commission arrangement is an arrangement between the lender and the broker that (a) permitted the broker to decide or negotiate your interest rate (or any associated fee) and (b) paid the broker a higher or lower commission depending on the interest rate (or fee) charged to you.

A high commission arrangement is where the commission was:

• • At least 39% of the total charge for credit (i.e. the total amount you paid for the loan in interest payments and other fees); and
  • At least 10% of the amount borrowed.

These thresholds were set by the Financial Conduct Authority (FCA).

A tied arrangement is a contractual arrangement where the broker must either:

• Introduce consumers exclusively to a certain lender; or
• Give the lender the option to provide a credit offer to the consumer before any other lender.

Yes. Compensation won’t be paid under the redress scheme if:

• The commission paid to the broker was:
  • £120 or less for agreements entered into before 1 April 2014; or
  • £150 or less for agreements entered into on or after 1 April 2014.
• The agreement had a 0% APR.
• The interest rate was the lowest in the range of interest rates that could have been chosen under the discretionary commission arrangement.
• The amount you borrowed was very high (higher than 99.5% of all other motor finance loans financed by your lender that year).
• The agreement was entered into between 1 April 2007 and 5 April 2008, and the amount borrowed exceeded £25,000.
• Your agreement falls under a specific exception within the scheme. This applies where the dealer’s advertising and branding made it obvious that they had a tied agreement with a lender.

Please also see the question above, “Who is eligible for the redress scheme?”, which outlines further situations in which you will not be eligible for compensation under the redress scheme.

The Financial Conduct Authority (FCA) has defined motor vehicles as mechanically propelled vehicles intended or adapted for use on public roads. This means that some vehicles aren’t included. For example, towed caravans or jet skis are not included in the redress scheme.

You may still be eligible if you were a UK resident at the time of entering into the agreement, even if you no longer live in the UK. You can make a complaint about your motor finance agreement by contacting our Commissions Complaints team at [email protected].

Generally, no. The redress scheme doesn’t cover agreements involving:

• Limited companies.
• Limited liability partnerships.
• Partnerships consisting of more than 3 people.
• Agreements with a credit value of over £25,000 for business purposes.

However, you may be eligible for the redress scheme if:

• You are a sole trader, or a partnership with 2 or 3 partners where at least one partner is an individual.
• You took out a motor finance loan for business purposes.
• The amount you borrowed was £25,000 or less.

You can check your original loan agreement to confirm the amount you borrowed.

If your case has already been decided by a court, it won’t be eligible to be part of the redress scheme. If your case is ongoing and the court hasn’t made a decision, you and your legal representative will need to decide whether you want to continue with the legal proceedings.

If you decide not to carry on with your case, please notify us via email or by phone and we will assess your claim under the redress scheme. If you decide to continue with the legal proceedings, we will write to you separately.

If your complaint was referred to the FOS before the redress scheme began and the investigation has already concluded, it will not be eligible for the redress scheme. This is the case whether you received compensation as a result of your complaint or not. However, if the FOS decided your complaint was outside its jurisdiction, we will assess your complaint under the redress scheme.

If the FOS investigation is still ongoing, you will need to decide whether to withdraw your complaint.

If your complaint was referred to the FOS but is withdrawn before the investigation concludes, we will assess your complaint under the redress scheme.

If the commission on your agreement was:

• £120 or less for agreements entered into before 1 April 2014; or
• £150 or less for agreements entered into on or after that date, your agreement will not be reviewed under the redress scheme.

The Financial Conduct Authority (FCA) considers commission at these levels unlikely to have affected the fairness of the agreement.

If your agreement had a 0% interest rate, it will not be eligible for compensation under the redress scheme. The Financial Conduct Authority (FCA) considers that customers paying no interest would not have been disadvantaged by undisclosed commission arrangements.

We will only get in touch with:

• Customers who have previously complained. In this case, we will provide you with your provisional redress decision.
• Customers who have not previously complained but may be eligible for compensation under the redress scheme. In this case, we will contact you to invite you to take part in the redress scheme.
• Customers who have not previously complained and are not eligible for compensation because they would now be time-barred from bringing a claim. In this case, we will get in touch to let you know your available options.

Because of the legal challenge to the redress scheme, certain parts of the scheme are suspended. We are waiting for further information about when we are required to contact you if you are due compensation and have not previously complained.

Even if you haven’t heard from us, you can still contact us by phone or email, or use the Commission Redress Portal to make a complaint until 31 August 2027.

If you contact us after 31 August 2027, we’ll consider whether the right steps were taken to decide whether you should have been contacted to take part in the redress scheme. If we made an error by not asking you to opt in, or if there are other exceptional circumstances, we will still consider your claim.

2.2.1 Customers not due redress

If you have raised a complaint and are not owed compensation under the scheme, we will write to you by:

• 18 November 2026 for agreements entered into between 1 April 2014 and 1 November 2024, where the complaint was raised before 30 June 2026.
• 18 January 2027 for agreements entered into between 6 April 2007 and 31 March 2014, where the complaint was raised by 31 August 2026.

If you complain after these dates and are not owed compensation, we will write to you within five months of receiving your complaint.

2.2.2 Customers due compensation

Several organisations are challenging the FCA’s motor finance redress scheme through the courts. Because of this, it may take longer than usual to resolve your complaint, and you may not receive an outcome until next year.

Once we know more about the timescales, we will update our website with more information.

All genuine redress scheme communications will include a unique reference number and key agreement details, such as your agreement number.

You can check that communications are genuine by:

• Contacting us using the details published on our contact page: Contact Us – Volvo.

We will never ask for your full passwords or bank details by email or text.

If English isn’t your first language, or you find it difficult to understand or communicate in English, you can use translators or translation tools to help.

If you need to speak to us by phone, you can ask someone to help you.

The redress scheme is designed to be accessible for all customers, including those with additional needs.

We aim to keep the process clear and straightforward and communicate in a way that takes your circumstances into account.

Our customer support team can help with additional needs and specific requirements throughout the claims process. If you need extra support, please contact us [email protected].

No. If you’ve asked a Claims Management Company or law firm to act on your behalf, we’ll contact them directly about your claim. You won’t receive separate communications from us.

If you have raised a complaint and are not owed compensation under the scheme, we will write to you by:

• 18 November 2026 for agreements entered into between 1 April 2014 and 1 November 2024, where the complaint was raised before 30 June 2026.
• 18 January 2027 for agreements entered into between 6 April 2007 and 31 March 2014, where the complaint was raised by 31 August 2026.

If you complain after these dates and are not owed compensation, we will write to you within five months of receiving your complaint.

If you’ve submitted more than one complaint and we have not yet contacted you about some of them, please be assured that we will be in touch as soon as possible.

There are ongoing legal challenges to the FCA’s motor finance redress scheme, which may affect how quickly we can review and resolve certain complaints. So, it may take longer than usual to give you an outcome for your other complaint(s), and you may not receive a final response until next year.

We’ll continue to monitor developments. Once we know more, we’ll put an update on our website Commission – Volvo Car Financial Services UK Limited

The information provided will depend on the reason why no redress is due to you.

If your agreement is not covered by the Scheme, the letter will:

• Confirm the final outcome of your complaint.
• Confirm that you are not due any redress under the scheme.
• Explain the reasons for the decision.
• Clearly explain your right to refer your complaint to the Financial Ombudsman Service (FOS) if you disagree with the decision.

If your agreement is determined to have had a 0% APR, the letter will:

• Confirm the final outcome of your complaint.
• Confirm that you are not due any redress under the scheme.
• Explain the reasons for the decision.
• Explain how you can contact us if you disagree with the determination or have any questions.

If you do not respond to our first communication within 31 days, we will send you a further letter confirming our decision and clearly explaining your right to refer your complaint to the Financial Ombudsman Service (FOS) if you disagree with the decision.

This means that your agreement does not meet the scheme criteria for one of the following reasons:

• A court or tribunal has already made a decision about your claim.
• Your agreement was cancelled or withdrawn within the initial cancellation or cooling-off period.
• The Financial Ombudsman Service (FOS) has already considered your complaint.
• No commission was paid.
• Your agreement is classified as a high-value loan.

The Scheme does not apply where a court or tribunal has already considered and decided the merits of such a claim. This is because the complaint has effectively been resolved and the position is consistent with the FCA’s objective of providing certainty and finality to firms and consumers.

As a court or tribunal has already considered your claim, we are unable to assess your agreement again under the Scheme. As a result, your agreement does not qualify as a scheme case and is not eligible for compensation under the Scheme.

The initial cancellation, or cooling-off period, is the 14-day period after you sign a regulated car finance agreement, or receive a copy of it, during which you have a legal right under the Consumer Credit Act to cancel the agreement without giving a reason or incurring additional charges.

Where an agreement is cancelled or withdrawn within this 14-day period, it is not considered a scheme case. So, it’s not eligible for compensation under the scheme. This approach helps ensure fairness and consistency by preventing customers from receiving compensation in cases where they haven’t suffered any loss under the agreement.

As the FOS has already reviewed your complaint, your agreement cannot be reconsidered under the Scheme.

This is because the FOS will have carried out its own independent assessment of the circumstances of your complaint and reached a decision based on the available evidence. As part of that process, you would also have had the opportunity to challenge or seek a review of the FOS’s initial assessment if you disagreed with them.

The Scheme only applies where there was an arrangement under which commission was payable to a credit broker in connection with the motor finance agreement. The purpose of the Scheme is to address cases where an unfair relationship may have arisen due to inadequate disclosure of commission arrangements. As no commission was payable in relation to your agreement, there was no commission arrangement to disclose. So, your agreement isn’t covered under the Scheme and is not eligible for compensation.

The scheme doesn’t include certain high-value agreements. This applies where the amount borrowed was higher than 99.5% of other motor finance loans taken out in the same year.

The amount of credit provided under your agreement was above the limit for the year you took out your finance, so your agreement isn’t eligible for the scheme.

The FCA’s Motor Finance Consumer Redress Scheme sets out the limits used for each year.

If your agreement had a 0% interest rate, it would not be eligible for compensation under the redress scheme. The Financial Conduct Authority (FCA) considers that customers paying no interest would not have been disadvantaged by undisclosed commission arrangements.

0% APR means 0% Annual Percentage Rate, you didn’t pay any interest on the amount that you borrowed.

If you are satisfied with our decision, you don’t need to do anything. However, if you want to let us know that you accept our decision, please let us know by phone or email. We will then send you an email confirming that we have received and recorded your acceptance.

Please be aware that by accepting the outcome, you agree to this in full and final settlement of all claims against Santander Consumer (UK) plc relating to the subject matter of the Scheme in relation to your case, including any legal claims.

If you chose to accept the decision, this will be in full and final settlement of this matter. This means that we consider your claim with Santander Consumer to be settled and that you are in agreement with the outcome we have reached. You will not be able to pursue this matter via alternative routes.

If your agreement is determined to have had a 0% APR, you have the right to raise a formal objection to our provisional redress decision directly with us.

Once you have told us you wish to raise an objection, you have one month to provide further information and any evidence that supports your view.

Once we receive your further information, we will review the information provided and investigate. We will then issue a response within the timescales set by the FCA, typically within two months of receiving your formal objection.

If we uphold your objection, we will write to confirm our decision, explain the reasons for it and outline any next steps.

If we do not uphold your objection, we will write to confirm our decision and explain the reasons for it. We will also provide information about your right to refer your case to the Financial Ombudsman Service (FOS). The FOS will independently review your case and determine whether the scheme’s rules were correctly applied. You have six months from the date we send our outcome letter to refer your case to the FOS.

You can also decline your outcome, but this means we will close your claim relating to the agreement and will not review your outcome decision. You can still take your claim to the FOS.

If your agreement is not covered by the Scheme, for example because of a settled court case, cancellation or withdrawal, a previous FOS decision, no commission being paid, or the agreement being classified as high value, the redress determination letter sent to you is our final response on your complaint. You do not have the right to raise a formal objection with us under the Scheme.

However, if you disagree with our determination that your case is not due any redress, you have the right to refer your complaint to the Financial Ombudsman Service, free of charge – but you must do so within six months of the date our final response letter is sent.

If you do not refer your complaint in time, the FOS will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the FOS believes that the delay was as a result of exceptional circumstances.

If the FOS does consider your complaint, it will decide by reference to what is, in its opinion, fair and reasonable in all the circumstances of your case.

You can contact us to let us know you decline your outcome, but you don’t need to. You can still complain directly to the FOS.

Under the scheme rules, you can’t object to our decision if your agreement isn’t covered by the scheme.

We’ve provided our full and final response to your complaint in our outcome letter.

If you disagree with our decision, you can still refer your complaint to the FOS.

If you object to your outcome, you’re asking us to look at your complaint again. We’ll ask you to provide any further information or supporting evidence within 1 month. We’ll then review this information and reconsider your complaint.

If you decline your outcome, we’ll close the claim relating to your agreement and won’t review it any further.

The Financial Ombudsman Service (FOS) is an independent organisation in the UK that acts as a neutral third party. Their job is to help resolve disputes between consumers and financial services companies. The FOS is free to use for consumers.

If you’re unhappy with our final decision about your claim under the redress scheme rules, you have the right to complain to the FOS. The FOS will independently review your case and determine whether the redress scheme rules were correctly applied. You have six months from the date we send our final decision to refer it to the FOS.

We are committed to treating customers fairly and providing a positive experience throughout the redress scheme. If you’re unhappy with any part of the claim process, please let us know so we can try to put things right.

You can contact our Motor Finance Commissions Redress Complaints team at [email protected]

They will discuss and investigate your complaint.

If you’re still unhappy after receiving our final response, you can refer your complaint to the Financial Ombudsman Service (FOS), which is independent and free to use for consumers.

The FOS is an independent organisation in the UK that is responsible for resolving disputes between consumers and financial services providers.