Santander is one of the UK's leading car finance providers, and it is among the lenders directly caught up in the FCA's investigation into discretionary commission arrangements. If you had a car finance agreement with Santander — or Santander Consumer Finance — before January 2021, this guide explains exactly how to pursue your refund, step by step.
Background: Why Santander Owes Car Finance Customers Money
Between 2007 and January 2021, many car dealers who sold Santander finance had the ability to set their own interest rates — within a range set by Santander. The higher the interest rate the dealer charged, the more commission they received. Crucially, this arrangement was never disclosed to customers.
This is what the FCA calls a discretionary commission arrangement (DCA). The FCA banned DCAs in January 2021 after concluding they created a clear conflict of interest: dealers were financially motivated to charge customers as much as possible, regardless of what the customer could afford or what the market rate was.
As a result, millions of UK consumers paid more interest than they should have. For Santander customers, this could amount to hundreds or thousands of pounds per agreement. Read our full explainer on what a discretionary commission arrangement is for more detail.
Step-by-Step: How to Get Your Santander Car Finance Refund
Check the Basics
Confirm you had a PCP or HP agreement with Santander (or Santander Consumer Finance) taken out between April 2007 and January 2021, arranged through a car dealer. You do not need documents at this stage.
Complete the Free Eligibility Check
Use the free checker at motorredress.co.uk. It takes 60 seconds and gives you an immediate indication of whether your agreement is likely to qualify. There is no cost and no obligation.
Register Your Claim Before 29 July 2026
The FCA's deadline for registering motor finance complaints is 29 July 2026. It is important to register before this date — even if the claim cannot be processed immediately due to the ongoing Supreme Court proceedings.
We Request Your Agreement Records
MotorRedress submits a Subject Access Request to Santander on your behalf, obtaining all records related to your finance agreement. This includes the commission paid to the dealer and the interest rate applied.
Formal Complaint to Santander
We lodge a formal complaint with Santander's complaints team. Santander must acknowledge and investigate within FCA-prescribed timeframes.
Receive Your Compensation
If Santander upholds your complaint, compensation is paid directly to you. If Santander rejects the claim, we escalate to the Financial Ombudsman Service. Our fee is only payable if we win.
Start Your Santander Claim Today
Free check in 60 seconds. No documents needed. No Win No Fee.
Check My Eligibility FreeAm I Eligible for a Santander Car Finance Refund?
You are likely eligible if:
- Your finance agreement was with Santander UK plc or Santander Consumer Finance
- The agreement was a PCP or HP (not a personal loan or lease)
- It was taken out between April 2007 and January 2021
- Finance was arranged through a car dealer, not directly via Santander
How Much Could I Get Back from Santander?
Compensation is based on the difference between the interest rate you were charged and the rate you would have received without the inflated commission. On a typical agreement of £12,000 over 4 years, the overpayment could be anywhere from £600 to £2,500 depending on how much the dealer inflated the rate.
Compensation also accrues interest at 8% per year from the date of the original overpayment — meaning older agreements generate proportionally more interest on top of the principal refund.
For a detailed breakdown, read: How Much Car Finance Compensation Can I Get?
What If Santander Has Already Written to Me?
Some Santander customers have received letters informing them that their complaint is "on hold" pending the FCA review or the Supreme Court ruling. This is standard practice and does not mean your claim has been rejected. MotorRedress will monitor your claim and ensure it is progressed as soon as the FCA scheme is activated.
Also see: PCP Claim Deadline 2026 — What You Need to Know.
Santander vs Other Lenders — Is There a Difference?
All major lenders that operated DCAs are subject to the same FCA investigation. However, there are some practical differences between lenders in terms of how quickly they are likely to process claims and how robustly they are defending them. For more information on how Santander compares to other lenders, see our lenders page.