Blue Motor Finance Limited went into administration on 30 July 2026. Simon Edel, Richard Barker and Alan Michael Hudson of Ernst & Young LLP have been appointed joint administrators.
Two different things follow, depending on whether you owe them money or they owe you.
If you have a loan with them
Keep paying as normal. Existing loan agreements remain in place and will be serviced in the short term, and the FCA is clear that customers should continue making payments as usual. Administration doesn’t cancel the debt.
It’s possible your loan was sold on before now. If it was, the purchaser may now be responsible for it. Original lenders and debt purchasers are required to cooperate and share information, and a purchaser that isn’t responsible for a complaint must forward it promptly and tell you they’ve done so.
What if you’re owed compensation?
This is the harder part. Blue Motor Finance remains liable for compensation it owes, including under the FCA’s motor finance compensation scheme, but customers owed compensation are unlikely to receive the full amount.
There’s no safety net behind it. There is generally no FSCS protection for consumer credit lenders, and money owed under the motor finance scheme isn’t FSCS-covered either. That’s the part most people get wrong: the Financial Services Compensation Scheme doesn’t stand behind every failed financial firm. For a consumer credit lender, it doesn’t stand behind it at all.
So a claim becomes a claim in the administration, ranked alongside other creditors, and paid at whatever proportion the assets stretch to. The FCA notes the firm had been loss-making for years regardless of the compensation it owed.
Don’t pay someone a percentage of nothing
A claims management company or law firm may charge up to 36% in fees, including VAT, out of any compensation you receive. Against a payout that’s already uncertain and likely to be partial, that’s a poor trade and there is nothing a CMC can do here that you can’t do by contacting the administrators.
Expect impersonation attempts, too. Firm failures reliably attract fraudsters who know exactly who’s owed money and who’s anxious about it. If you get an unexpected call, text or email about your Blue Motor Finance loan or claim, end it and contact the administrators through the details on Ernst & Young’s own website.
If you have a complaint about how your loan or claim is being handled, our guide to writing a complaint letter covers what to send and what to keep, and what to do when they don’t reply covers the silence.
Common questions
Do I still have to pay my Blue Motor Finance loan?
Yes. Existing agreements remain in place and will be serviced in the short term. Administration doesn’t cancel the debt.
Will I still get my car finance compensation?
Blue Motor Finance remains liable, but customers owed compensation are unlikely to receive the full amount.
Does the FSCS cover money owed by Blue Motor Finance?
Generally there is no FSCS protection for consumer credit lenders, and money owed under the motor finance scheme isn’t FSCS-covered.