The recent headlines surrounding motor finance compensation have understandably attracted attention. However, the position for borrowers in Jersey is different from that in the UK. Here, we explain what has happened, who may be affected and what steps local borrowers can take.
Millions of people have used finance to purchase a car, van, motorbike or other vehicle. In many cases, the finance was introduced by a motor dealer or another broker, who then received a commission from the lender.
Paying a commission is not necessarily wrong. The concern arises when important information about that commission, the relationship between the lender and broker, or the way the customer’s interest rate was determined was not properly disclosed.
For borrowers, the central question is simple:
Did you have enough clear information to understand who was being paid, how the arrangement worked and whether it may have affected the cost or choice of your finance?
What has happened in the UK?
In March 2026, the UK Financial Conduct Authority confirmed a motor finance consumer redress scheme covering certain agreements entered into between 6 April 2007 and 1 November 2024.
The FCA estimates that approximately 12.1 million agreements could qualify, with average compensation estimated at £829 for each eligible agreement. That is an average rather than a fixed payment. Some people may receive less, while those with larger loans or particularly significant commission arrangements could receive more. (FCA)
The UK scheme considers three broad types of arrangement that may have been unfairly withheld from customers:
- Discretionary commission arrangements, where a broker could influence the customer’s interest rate to earn more commission.
- High commission arrangements, where the commission represented a significant proportion of both the amount borrowed and the total cost of credit.
- Contractual ties, where a broker was tied to a particular lender or gave that lender preferential access without explaining this properly to the customer. (FCA)
However, the UK scheme is currently subject to legal challenges. Parts of it were suspended in July 2026, and the Upper Tribunal is expected to hear the challenges either in December 2026 or February 2027. Until that process concludes, UK lenders are not required to calculate or pay compensation under the suspended parts of the scheme. If the scheme is upheld and there is no further appeal, the FCA currently expects payments to begin in 2027. (FCA)
Does the UK compensation scheme apply in Jersey?
No. The FCA’s statutory redress scheme does not automatically apply to motor finance provided in Jersey or elsewhere in the Channel Islands.
This is an important distinction. Jersey borrowers should not assume they will automatically be contacted or receive the same compensation as someone covered by the UK scheme.
That does not mean local borrowers have no right to complain.
The Channel Islands Financial Ombudsman, known as CIFO, has confirmed that complaints concerning motor finance provided in the Channel Islands can fall within its remit. Where CIFO considers a complaint to have merit, it can award compensation for financial loss of up to £150,000. Its service is independent, impartial and free for consumers to use.
CIFO has said that it will be mindful of developments in the UK. However, it will consider the circumstances of each local transaction, including the finance arrangement, the information provided to the borrower and potentially the wider vehicle purchase, such as whether a discount was offered as part of the deal.
There is therefore no guarantee that Jersey will adopt the UK scheme or its compensation calculations. Local complaints will currently be considered individually according to what CIFO believes is fair and reasonable.
Who in Jersey should check their previous vehicle finance?
It may be sensible to review your records if:
- You took out vehicle finance provided from Jersey on or after 1 January 2010.
- The finance was arranged through a motor dealer, vehicle retailer or finance broker.
- You do not remember being told that the dealer or broker would receive commission.
- You were not told how much commission might be paid or how it was calculated.
- You were led to believe the broker was comparing several lenders when it may have had a preferred or exclusive lender.
- You are unsure whether the interest rate or finance product offered to you was influenced by the commission arrangement.
- You have had several financed vehicles since 2010.
Not every agreement will result in a valid complaint. The existence of a commission alone does not automatically establish that something unfair happened. The disclosure given to you, the nature of the relationship and the effect on the overall transaction will all be relevant.
CIFO’s time limits must also be considered. Broadly, the event complained about must have occurred on or after 1 January 2010 for finance provided from Jersey. A complaint will normally need to be made within six years of the relevant event or within two years of when the borrower became aware, or reasonably should have become aware, of the issue. Other deadlines can apply, so it is sensible not to delay. (ci-fo.org)
What should you do now?
1. Make a list of your previous agreements
Think about any cars, vans, motorbikes or other vehicles you have financed since January 2010.
For each agreement, record whatever you can remember, including:
- The vehicle and registration number.
- The approximate date of purchase.
- The dealer or broker involved.
- The lender you made payments to.
- The amount borrowed.
- Any agreement or account number you still have.
Do not assume that an old or completed agreement is irrelevant. Many people will have changed their vehicle several times during the period CIFO can potentially consider.
2. Look for your original documentation
Check old emails, bank statements, loan agreements, vehicle invoices and correspondence from the dealer or lender.
Your bank statements may help identify the lender even where the original agreement has been lost.
3. Ask for information about the commission arrangement
You can contact the lender, dealer or broker and ask whether commission was paid in connection with your agreement.
You may wish to ask:
- Whether a commission was paid.
- Who received it.
- How the commission was calculated.
- How much was paid.
- Whether the broker could influence the interest rate.
- Whether the broker was tied to, or had a preferential arrangement with, a particular lender.
- What information about the commission was provided to you before you entered into the agreement.
4. Make a formal complaint
Your complaint should explain why you believe the commission or lender relationship was not adequately disclosed and what information you would like the business to provide.
Before CIFO can become involved, the lender, dealer or broker must first be given an opportunity to investigate and resolve your complaint directly.
5. Allow the business to respond
A Jersey financial services business generally has up to three months to investigate and respond.
If you receive an unsatisfactory response, or no response within three months, you may then be able to refer the complaint to CIFO for an independent review.
Where a business issues a qualifying final response, you may have six months from the date of that response to approach CIFO. Do not leave the complaint unanswered or assume there is no deadline.
6. Be cautious about claims companies and unsolicited contact
You do not need to appoint a claims management company or representative to make a complaint. CIFO is free to use.
Be particularly careful about unsolicited messages promising guaranteed compensation or asking for upfront payments, passwords, PINs or banking information. UK authorities have already warned that fraudsters are using the publicity surrounding motor finance compensation to target consumers. (FCA)
How much could a Jersey borrower receive?
There is currently no standard compensation amount for Jersey.
The frequently reported figure of approximately £829 relates to the average estimated payment under the UK FCA scheme. It should not be treated as an estimate or promise of what a Jersey borrower might receive.
Where CIFO upholds a complaint, it will consider the loss experienced and what outcome would be fair and reasonable in the particular circumstances. The amount could therefore be lower or higher, or CIFO may decide that no compensation is due.
Why transparency in finance matters
The motor finance commission issue highlights something we have always believed at Gouldson Finance:
Clients should understand the finance they are entering into before they commit to it – not years later when a complaint or compensation scheme brings the details to light.
Transparency is more than placing information somewhere in the small print. It means explaining the cost of borrowing clearly, being open about the parties involved and helping the client understand their position throughout the life of the agreement.
Technology can play an important part in this. Gouldson clients are provided with access to our finance app, allowing them to view important account information, including their current balance and settlement position, without having to wait for an annual statement or search through old paperwork.
The app supports the wider conversation we have with every client. It does not replace straightforward explanations, clear documentation or the opportunity to ask questions. Instead, it gives clients continued visibility and control after the finance has been put in place.
Where a fee, commission or commercial relationship forms part of a transaction, we believe it should be communicated clearly. People make better financial decisions when they can see the complete picture.
Gouldson can help you understand your position
You can make a complaint yourself, and you do not need representation to approach CIFO.
However, we also know that looking back through years of vehicle finance agreements can feel overwhelming. You may have changed cars several times, used different lenders or no longer have the original paperwork to hand.
That is where we can help.
Gouldson Finance can support you by:
- Identifying and organising relevant agreements.
- Gathering the information available to you.
- Helping you understand what was disclosed at the time.
- Explaining the questions you may need to ask.
- Preparing a clear complaint for the lender, dealer or broker.
- Guiding you through the next steps if the matter is not resolved.
For any historic agreement introduced through Gouldson, you are always welcome to contact us directly. We will explain what information we hold, how the finance was arranged and what it means for you.
That openness is not something we are introducing because of the current motor finance headlines. It is how we have always chosen to work.
At Gouldson Finance, we believe clients should have a clear and accurate view of their borrowing from the outset and throughout the life of their agreement. That means straightforward conversations, transparent information and no unnecessary confusion.
We also provide every Gouldson client with access to our dedicated finance app, giving them an accurate, up-to-date view of their account directly from their phone.
Through the app, clients can access important information including their current balance, settlement position, account reports and other key details whenever they need them.
No waiting for paperwork. No guessing where things stand. No relying on outdated figures.
It is all there, clearly and securely, in their pocket.
For us, transparency is not just about meeting a requirement. It is about helping clients feel informed, confident and in control of their finances.
The wider motor finance commission issue is still evolving, and developments in the UK may influence how complaints are considered locally. What is already clear, however, is that Jersey borrowers should not ignore the issue or simply wait to be contacted.
If you have used vehicle finance since January 2010 and are unsure about the commission arrangements, now is a sensible time to review your records and ask the right questions.
To discuss a previous motor finance agreement, understand the information available to you or obtain help preparing a complaint, contact Carl and the Gouldson Finance team.
Gouldson Finance. Good to know.
Information correct as at July 2026. This article provides general information only and should not be treated as legal advice. Eligibility and complaint outcomes will depend on the circumstances of each individual agreement.
