Motor vehicle finance redress: The position of the Official Receiver
Source: gov.uk (2025-12-10)

The Official Receiver is aware of the recent media coverage and Supreme Court judgment in relation to motor vehicle finance redress.

Motor vehicle finance redress: Update

This is an update following recent media coverage and the Supreme Court judgment on the motor vehicle finance redress.

Before providing full guidance, we need to consider the judgment and Financial Conduct Authority (FCA) response including the outcome of their public consultation.

This is our current position, which may be subject to change.

Below are details of the pilot the Official Receiver is running for motor vehicle finance redress claims. Redress refers to putting something right when a customer has been treated unfairly or suffered a loss.

Creditors

If you are a creditor in a bankrupt’s estate, the Official Receiver will contact you if you are due any money from successful motor vehicle finance redress claims.

Contact the Official Receiver handling your case if you have any questions.

The following link may also be useful: register as a creditor in personal insolvency (https://www.gov.uk/government/publications/claim-money-back-from-a-bankrupt-person-or-company-in-compulsory-liquidation-guidance-for-creditors).

Bankrupts and former bankrupts

If you took out a motor vehicle finance agreement before your bankruptcy or discharge, any claim for redress will belong to the Official Receiver.

The Official Receiver will submit a claim and any monies received in redress will go to your creditors. You should not make a claim yourself as you are not entitled to do so. If you have already made a claim, you must tell your lender about your bankruptcy.

If you took out the finance agreement after your bankruptcy ended or if the courts annulled your bankruptcy, you have the right to make the claim and keep the compensation awarded.

Individuals with other insolvency proceedings

If you are in an Individual Voluntary Arrangement (IVA), you will need to contact the insolvency practitioner who dealt with your case to find out what will happen to your claim for compensation.

If you are under a Debt Relief Order (DRO) and receiving redress from a motor finance agreement would take your total assets over £2,000 during the moratorium period, you should contact the Official Receiver.

The moratorium period (also referred to as the DRO period) usually lasts for 12 months but can be shorter or longer.

This matters because getting a lump sum or asset during the moratorium period could affect your DRO.

Claims Management Companies

You should not make a claim or instruct a Claims Management Company (CMC) without speaking to the Official Receiver handling your bankruptcy or the Insolvency Practitioner managing your IVA.

What happens when you go bankrupt (https://www.gov.uk/bankruptcy).

Financial lenders - The Official Receiver’s Pilot

Managed Finance Solutions Ltd (MFS) is helping the Official Receiver run a pilot to check with lenders if any redress is owed to creditors in bankruptcy estates.

MFS is authorised by the Official Receiver to contact financial lenders and manage responses for individuals with insolvency court orders dated between 6 April 2007 and 28 January 2021.

If you are a financial lender and MFS contacts you, respond directly to them.

Before settling any claims for customers not in the pilot, check your own records and do an insolvency search on The Gazette. Any money due in redress should be held for the Official Receiver.

For claims involving individuals in an Individual Voluntary Arrangement (IVA), please send queries to their IVA supervisor.

Contact us

You can send questions about motor vehicle finance claims to xxx@xxx.xx (mailto:xxx@xxx.xx) giving the individuals full name and the bankruptcy or DRO case reference, if known, in your email.