Received car finance mis-selling compensation out of the blue? It DOESN'T stop you complaining about the latest scandal

Below we take you through what's happening and why you may still be able to claim.

'I got a payment of £3,300 into my account'

We've been hearing reports of people receiving payments from car finance providers. This has caused confusion as it comes at the same time that many people are submitting claims about mis-sold commission.

Here are some of the examples we've seen:

Why MoneySavers may be receiving car finance mis-selling payouts

We've contacted the providers users have told us they've received payments from – Black Horse, MotoNovo, and VW Financial Services – and they told us these payments are NOT related to regulator the Financial Conduct Authority's (FCA) ongoing investigation into the potential mis-selling of car finance agreements with hidden commission.

What's less clear, is why these payments are being made.

• In one letter we've seen, which has been verified by Black Horse, the lender made a payout for an administrative error, which meant the borrower had been charged more interest than they should have done when extending the term of their motor finance agreement.

• MotoNovo hasn't explained why some may have received payments, only confirming that it's not making any goodwill payments related to the FCA's investigation into historic motor finance commissions.

• Meanwhile, VW Financial Services told us it is proactively contacting current and former customers who might have experienced repayment difficulties and may not have received good levels of service.

Regulator the Financial Conduct Authority (FCA) wouldn't comment on individual cases, but did say it expects firms to take steps to proactively rectify problems they have identified, which may include making offers of redress to affected consumers. It does, however, expect firms to explain why they are offering compensation and the implications of accepting it. If you're unsure, you should check with your provider directly.

For more info on mis-sold car finance, see our Reclaim mis-sold car finance loans guide.

Why this is different to the regulator's current ongoing investigation

The FCA is currently investigating whether car finance lenders mis-sold to consumers by using hidden 'discretionary commission' arrangements. This is where lenders allowed brokers and car dealers to up the interest on car finance agreements to increase their commission – so you overpaid, without knowing.

These types of agreement were banned on Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements in January 2021, with the FCA launching a major investigation into the issue in January 2024. An outcome was expected in September 2024, but this has since been delayed until May 2025 – though redress payments are now more likely.

In the meantime, while firms are encouraged to progress complaints, they don't have to make any decisions on them just yet. That said, it's still important to get your complaint logged sooner rather than later, so there's less chance you'll be timed out.

This means you can still make a claim if you had an agreement with hidden commission

So, even if you've recently received a payout from a car finance firm, if you took out a PCP or HP agreement on a vehicle before 28 January 2021, you might still be eligible to make a claim as part of the ongoing investigation into discretionary commission arrangements.

There's no need to use a claims management firm to complain – it'll take a cut of any money you're due. To make it easier to do yourself, we've built a free car finance complaints tool – all you have to do is answer a few questions on the details of your car finance, then it'll build an email drafted by MoneySavingExpert.com founder Martin Lewis (with feedback from lawyers and regulators) for you.

For full details and the free tool, head to our Car finance discretionary commission reclaim guide.