Car Finance Compensation Claims: Is Your Client Money Infrastructure Ready?
The FCA’s compensation scheme covers 716 lenders and an industry-wide liability estimated at £9.1 billion. Law firms and CMCs handling these claims need operationally ready, segregated client money infrastructure before compensation payment volumes begin to scale.
FCA Regulated
TPMA infrastructure
Dedicated Relationship Manager
Onboarding in 48 hours
Segregated safeguarding accounts
Managing client money in claims is operationally complex
Co-mingling
Client funds mixed with firm money at the account level, a direct breach of SRA and FCA client money rules.
Inadequate segregation
No named client identification within the account makes audit and reconciliation fragile at volume.
Delayed disbursement
Manual reconciliation across pooled accounts slows payments to consumers and invites scrutiny.
Onboarding refusal
High-street banks routinely decline or stall CMC and high-volume claims accounts.
A scheme under pressure, but heading only one way
The FCA's motor finance compensation scheme continues to face legal and regulatory challenges. Multiple lenders, including Volkswagen Financial Services and Mercedes-Benz Financial Services, are contesting the scheme, while consumer groups push for broader redress. Tribunal hearings are not expected before October 2026.
At the same time, lenders are already feeling the financial impact. Aldermore's owner, FirstRand, has reportedly set aside £750 million in redress charges and described the scheme as incompatible with its UK consumer finance risk appetite.
The firms that prepare early will process claims faster, remain operationally resilient, and reduce regulatory friction when compensation volumes begin to increase.
TPMA and Escrow accounts built for exactly this
Interpolitan Money is FCA-regulated and provides Third-Party Managed Accounts (TPMA) and escrow infrastructure specifically designed for professional intermediaries managing client funds.
Disbursement at scale requires infrastructure designed for regulated client money.
Our TPMA framework is structured to support compliance with SRA Rule 11, allowing solicitors to manage motor finance compensation on behalf of their clients without holding client money in-house. Funds are held in segregated safeguarding accounts with named client identification. You receive real-time reporting and dual authorisation controls.
For Law Firms
Our accounts provide the segregation, audit trail, and disbursement controls regulators expect. You can receive compensation payments from lenders and distribute to consumers within a compliant, documented framework — all supported by a dedicated Relationship Manager.
For CMCs
Key capabilities
1. Onboarding typically completed in 7–10 days
2. Dedicated Relationship Manager on every account
3. FCA-regulated escrow for multi-party and milestone-based disbursements
4. TPMA compliance with SRA Rule 11 (for law firms)
5. Named, segregated client money accounts
6. Batch payment processing for high-volume consumer distributions
Built For Firms Managing Regulated Compensation Flows
Law firms handling motor finance claims
CMCs processing compensation
Introducers and legal networks
Litigation specialists
Consumer finance claims teams
As recognised in...
What Happens When Motor Finance Compensation Starts Flowing?
Lender
Law Firm/CMC
TPMA/Escrow
Consumer
Designed to support compliant receipt, segregation, management, and disbursement of client money at scale.
We already work in this space
We understand regulated client money. We already provide TPMA accounts to law firms, escrow infrastructure to corporate transactions, and multi-currency payment infrastructure to complex entities.
The operational challenges behind motor finance compensation are not new to us, they are a direct extension of the regulated client money infrastructure we already provide.
We are not an automated platform. Every account has a dedicated Relationship Manager who understands the regulatory environment and can support you through onboarding and ongoing compliance requirements.
Infrastructure that scales with your caseload
Whether you're a boutique claims firm handling your first wave of motor finance cases, or a CMC processing compensation at scale, we have an account structure built around your operational requirements.
Feature | Core | Enterprise |
|---|---|---|
Best for | Law firms and CMCs building motor finance claims capacity | High-volume CMCs and legal networks processing at institutional scale |
TPMA / Escrow | Included | Included |
Onboarding | Priority with dedicated Relationship Manager | Bespoke plan agreed before signing |
Capital flow | Unlimited | Unlimited |
Relationship Manager | Named priority response | Dedicated team direct access |