The FCA is currently preparing a compensation scheme for tens of thousands of people who were unknowingly charged more for their car finance because of hidden commissions paid to dealerships.
As part of the consultation process, and to ensure the scheme delivers what consumers need for a fair and reliable process, Bott and Co, along with Consumer Voice, surveyed more than 9,700 clients.
Their answers paint a clear picture of frustration, mistrust, and a strong desire for accountability.
Most Drivers Were Never Told About Commission
One of the most striking findings is the near-total lack of transparency at the point of sale.
Only 2% recall being told a dealer would earn commission and nearly 9 in 10 people say they’d have refused the deal or looked elsewhere had they known.
This wasn’t a small oversight. It was a widespread failure to give customers basic information needed to make an informed choice.
The Financial Impact Was Serious
For many households, the impact went beyond simply overpaying for a car.
66% of people experienced financial strain, 33% struggled to pay essential bills and 33% reported stress or worry linked to their agreement.
Bott and Co say that these figures show why compensation must reflect real individual harm, not a flat amount that fails to recognise how deeply some families were affected.
Lack of Confidence in Lenders Handling Redress
The proposed scheme by the FCA is designed to be simple and free to use. But simplicity alone won’t rebuild confidence and trust.
56% of people surveyed distrust lenders to apply the rules correctly and more than 60% believe the suggested average payout would be unfair.
The same firms that benefited from hidden commissions are now expected to calculate compensation. Many drivers see that as a step too far and entirely unjust.
Risk of People Missing Out Entirely
Lenders may rely heavily on old records when contacting customers for compensation, but many people’s details have changed.
The survey revealed that 39% of respondents have moved or changed contact details since their agreement and 3 in 4 worry that missing records could stop them being compensated.
The FCA must force lenders to locate affected customers. Without strict rules requiring lenders to locate every eligible customer, thousands risk slipping through the cracks. Redress must be automatic, transparent and fair, not a postcode lottery.
Why Many Still Want (and Need) Legal Support
Even if the FCA’s scheme is free, many respondents say they would still prefer independent help.
Over 50% want the option of legal representation and 37% would choose a lawyer regardless of a free scheme.
Drivers told us they want:
- Confidence their case will be taken seriously
- Protection from a process run by the same lenders involved
- Expert help to make sure nothing is missed
For many, it’s not about the fee, it’s about having someone in their corner.
What Drivers Told Us
“I was never told about commission and it cost me thousands.”
“We deserve proper compensation, not a token amount.”
“Without Bott and Co, we’d have no chance against the lenders.”
These comments echo a wider feeling: people want fairness, clarity, and reassurance that this time the process will be done properly.
What the FCA Must Get Right
Based on the findings, Bott and Co say the redress scheme needs to ensure:
- All eligible customers are contacted – not just those lenders can easily find
- Compensation reflects real harm, not averages
- Independent oversight, not lender self-assessment
- The right to legal support, for anyone who feels they need it
- Transparency at every stage of the process
Coby Benson says that “This is a rare opportunity to fix years of unfairness. It cannot be a half-measure.”
Bott and Co’s Commitment to Fair Redress
We’ve already helped thousands of drivers recover money they should never have paid. We will continue to push for a scheme that:
- Puts consumers first
- Delivers meaningful compensation
- Holds firms properly to account
- Restores trust in a sector where trust has been badly damaged
Fairness must be the foundation, not an afterthought.
Could You Be Owed Money?
If you took out car finance between 2007 and 2024 and weren’t told about dealer commission, you may be entitled to a refund.
At Bott and Co, we’re here to guide you through every stage of your mis-sold motor finance claim, whether the FCA scheme is in place yet or not.