Ford Credit, the financing arm of Ford Motor Company, has been at the centre of a significant regulatory investigation by the Financial Conduct Authority (FCA). The FCA's findings have highlighted issues with discretionary commission arrangements that may have affected millions of consumers. This article provides an overview of what happened, who is affected, and how to proceed if you believe your finance agreement was impacted.
Who Is Ford Credit?
Ford Credit is a financial services company owned by the Ford Motor Company, one of the world’s leading automotive manufacturers. It offers financing solutions for both cars and vans, making it accessible to a wide range of consumers looking to purchase or lease new vehicles from Ford dealerships. As part of its operations, Ford Credit operates under FCE Bank plc, which is regulated by the Financial Conduct Authority (FCA).
What Happened
The investigation by the FCA was initiated to examine discretionary commission arrangements used in motor finance agreements. The findings revealed that some lenders, including Ford Credit, had engaged in practices that may have been unfair or misleading to customers. Specifically, these issues centred around how commissions were structured and paid out, potentially leading to higher costs for consumers without clear transparency.
How Many People Are Affected
The FCA has estimated that 12.1 million eligible agreements (FCA, March 2026) across the UK could be affected by these practices (FCA estimate). The total redress amount is expected to reach £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement. This period covers agreements made between 6 April 2007 and 1 November 2024.
If you believe your finance agreement was affected by the issues highlighted in the FCA investigation, it is important to understand that you can complain to Ford Credit directly for free. You do not need a claims management company. Here are the contact details:
By following these steps, you can initiate a complaint and seek redress without incurring additional fees or working with third-party claim management companies.
What to Do Next
If you suspect that your finance agreement may be impacted by the FCA investigation, there are several key steps you should take:
- Gather Documentation: Collect all relevant documents related to your finance agreement, including any correspondence with Ford Credit and details of your payments.
- Check Agreement Dates: Review the dates on your finance agreement to ensure it falls within the period covered by the FCA investigation (6 April 2007 to 1 November 2024).
- Complain Directly: Use the contact information provided above to initiate a complaint with Ford Credit.
Timeline
When you submit a complaint, Ford Credit should acknowledge receipt of your submission within three business days and provide an estimated timeframe for resolution. Typically, complaints are resolved within eight weeks. If you do not receive a satisfactory response after this period, you have the option to escalate your case to the Financial Ombudsman Service (FOS).
- Initial Response: Within 3 business days
- Resolution Period: Up to 8 weeks
- Escalation Option: FOS can be contacted if no resolution is achieved within 8 weeks
By understanding these steps and timelines, you can deal with the complaint process effectively without unnecessary complexity or costs. Remember, taking action directly with Ford Credit ensures transparency and avoids potential delays associated with third-party involvement.
For further guidance and resources on motor finance agreements and your rights as a consumer, visit mlj.org.uk.
Latest: The FCA has confirmed the car finance compensation scheme on 30 March 2026. 12.1 million agreements are eligible, with an FCA-estimated scheme average of £829 per eligible agreement. Read the full details.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.