The Financial Conduct Authority (FCA) has issued a statement offering guidance to both lenders and consumers following challenges to its motor finance redress scheme brought by Consumer Voice and three lenders.
The Financial Conduct Authority (FCA) estimated, in its final redress scheme rules, that lenders would pay an average of £829 compensation on each eligible motor finance agreement.
Compensatory interest is one of the most important parts of the Financial Conduct Authority’s (FCA) motor finance redress scheme.
Three lenders have appealed against the Financial Conduct Authority’s (FCA) motor finance redress scheme, according to a Financial Times report published on 29 April.
Advocacy group Consumer Voice, which had previously called on the Financial Conduct Authority (FCA) to put consumers first in its redress scheme plans, has confirmed that it will seek to challenge the regulator’s final scheme rules at the Upper Tribunal.
On 30 March 2026, the Financial Conduct Authority (FCA) confirmed that it would proceed with its proposed motor finance redress scheme, outlining how it would operate in Policy Statement PS26/3: Motor Finance Consumer Redress Scheme.
The Financial Conduct Authority (FCA) has confirmed that it will proceed with a motor finance redress scheme, saying in a statement published shortly before 1700 on 30 March 2026 that it had received over 1,000 responses to its consultation paper CP25/27: Motor Finance Consumer Redress Scheme, which it published on 7 October 2025.
Most people judge a car finance deal by whether the monthly payment felt affordable when they entered into it.
Having completed what it called an ‘extensive review’ covering data from 32 million agreements since beginning its investigation on 11 January 2024, the Financial Conduct Authority (FCA) published proposals for a motor finance redress scheme on 7 October 2025, estimating that compensation would be due on an estimated 14.2 million agreements entered into by consumers between 6 April 2007 and 1 November 2024.
Lenders and industry bodies have repeatedly warned that large-scale redress payments for motor finance mis-selling will damage the UK economy.
We would be very happy to discuss any other questions you might have. You can call us on 0203 070 2822 to speak to a member of the team or email info@motorfinance.harcusparker.co.uk and someone will get back to you.