Behind on FCA Automotive car finance? Read this before they repossess

If a default notice or arrears letter from FCA Automotive Services has just landed, the first thing to clear up is what FCA actually means here. FCA Automotive Services is the Fiat Chrysler Automobiles UK consumer-finance arm — it is not the Financial Conduct Authority. Same three letters, completely different organisations.

This is secured motor finance — fall behind and the lender can take the car. The Consumer Credit Act gives you specific protections, including voluntary termination once half the total has been paid, and a court-order requirement before repossession if you’ve paid more than a third. This page covers who FCA Automotive are, how PCP and HP arrears actually work, and how an IVA can cover any unsecured shortfall after the car has gone back.

FCA Automotive Services vs the FCA — clearing up the confusion

#

If your letter is about a car-finance agreement, monthly payment, default notice, repossession or PCP balloon, it’s from FCA Automotive Services and this page applies. If your letter is from the Financial Conduct Authority itself, it’s a regulatory matter (e.g. firm-conduct enquiry, scam warning) and unrelated to consumer car finance.

Who FCA Automotive Services are

#

FCA Automotive Services Limited is the UK retail-finance arm of the Fiat Chrysler Automobiles group. Following the 2021 merger of FCA and PSA, it now sits within Stellantis Financial Services, alongside finance arms for Peugeot, Citroen, Vauxhall and other Stellantis brands. They write PCP (Personal Contract Purchase) and HP (Hire Purchase) agreements through dealerships, secured against the vehicle. They are authorised and regulated by the Financial Conduct Authority and bound by the Consumer Credit Act 1974.

PCP and HP agreements are secured against the car. You don’t actually own the vehicle until the final payment (or option-to-purchase fee on a PCP) — until then it belongs to FCA Automotive, and they can take it back if you default.

What FCA Automotive can and cannot do

#

FCA Automotive can:

• Issue a default notice under section 87 of the Consumer Credit Act, giving at least 14 days to remedy arrears
• Terminate the agreement if arrears are not cleared
• Recover the car — with a court order if more than 1/3 of the total payable has been paid (under section 90 CCA), without one if less than 1/3
• Pursue any shortfall after sale as an unsecured debt
• Pass the shortfall to an in-house collections team or sell it on to a debt purchaser

What FCA Automotive cannot do:

• Force entry to your home — they can take a car from a public driveway or roadside, but cannot break in
• Take the car from a locked garage without your permission, even below a third paid
• Threaten arrest — debt is civil
• Add charges that aren’t in the original agreement

Two checks worth running first

#

1. How much have you paid? Look at the total amount payable on your agreement (interest plus any option-to-purchase fee). Calculate what percentage you’ve paid. Below 1/3, FCA Automotive can repossess without a court order. At 1/3 or more, they need one. At 1/2 or more, you can use voluntary termination under section 99 CCA to cap your liability.
2. Was the agreement properly arranged? The FCA banned discretionary commission arrangements on motor finance in 2021 and is reviewing past cases. If the dealer set your interest rate, you may have a mis-selling complaint that can be set off against the balance.

Voluntary termination vs voluntary surrender

#

These are very different — confusing them is one of the most common (and expensive) mistakes:

• Voluntary termination (section 99 CCA) — once you’ve paid (or are willing to pay up to) half the total amount payable, you can hand the car back and walk away. The agreement ends. Any further loss is FCA Automotive’s, not yours (subject to fair-wear-and-tear).
• Voluntary surrender — you hand the car back, but the agreement continues. FCA Automotive sells the car, calculates the shortfall, and pursues you for the difference plus charges. You remain fully liable for the balance.

If you can use voluntary termination, do so in writing, citing section 99 of the Consumer Credit Act 1974. Don’t say “I want to surrender the car” — that’s the wrong door.

Routes out

#

• Catch up the arrears if you can — FCA Automotive must consider an affordable plan under CONC.
• Voluntary termination under section 99 CCA if you’ve paid (or are willing to pay up to) half. Liability is capped.
• Voluntary surrender if voluntary termination isn’t available — but expect a shortfall to follow.
• IVA to cover the unsecured shortfall after the car has gone back, alongside any other unsecured debts. Eligibility starts at around £5,000 of total unsecured debt.
• Mis-selling complaint if the PCP was set up under a discretionary commission arrangement.
• Bankruptcy for severe situations with no realistic monthly contribution.

Pitfalls with FCA Automotive

#

• Don’t confuse FCA Automotive with the FCA regulator. Different organisations.
• Don’t surrender when you could terminate. Surrender leaves you liable for a much bigger shortfall.
• Don’t ignore the default notice. It’s the legal precursor to repossession.
• Don’t hide the car. Concealment doesn’t change the debt and can be used as evidence in court.
• Don’t continue paying if you’ve already exceeded half and want out — you’ve already qualified for voluntary termination.
• Don’t assume the IVA covers the secured car-finance balance. It can’t — only the unsecured shortfall after the car has gone back.

Frequently asked questions

#

Is FCA Automotive the FCA regulator? No — different organisation, same letters. FCA Automotive Services is Fiat Chrysler’s UK finance arm.

Can they repossess my car? Yes — with a court order above a third paid, without one below.

What’s voluntary termination? Section 99 CCA — hand the car back at half paid (or pay up to half), no further liability beyond fair-wear charges.

Will an IVA include my FCA Automotive debt? The unsecured shortfall after the car has gone back, yes. The secured balance while you have the car, no.

Related guides

#

• Black Horse Finance — Lloyds car finance
• Lowell Financial — major debt purchaser
• Can debt be written off?
• How long can I be chased for a debt?
• How do I apply for an IVA?