The Financial Conduct Authority’s (FCA) motor finance redress scheme, which is now partially suspended pending four legal challenges, is the culmination of years of work in the motor finance space.
As of September 2026, the Financial Conduct Authority’s (FCA) motor finance consumer redress scheme remains partially suspended, with compensation payments not expected to begin until at least 2027.
The partial suspension of the Financial Conduct Authority’s (FCA) motor finance consumer redress scheme means that compensation payments are not expected to begin until 2027 at the earliest.
Guaranteed Asset Protection (GAP) insurance pays the difference between what your motor insurer pays out if your car is written off or stolen and a higher figure, such as the price you originally paid for the vehicle or the outstanding finance balance you still owe.
The Financial Conduct Authority (FCA) estimates that approximately 12.1 million motor finance agreements, 37% of those entered into between 6 April 2007 and 1 November 2024, are eligible for compensation under its redress scheme.
The Financial Conduct Authority’s (FCA) motor finance redress scheme does not require lenders to contact every former customer who entered into an agreement between 6 April 2007 and 1 November 2024.
In a statement published on Thursday, 2 July 2026, the Financial Conduct Authority (FCA) confirmed that the Upper Tribunal would hear the legal challenges to its motor finance consumer redress scheme either on 14-18 December 2026 or 16-26 February 2027, with a judgment expected in the months that follow.
Analysis of the Financial Conduct Authority’s (FCA) motor finance redress scheme has highlighted that approximately 1.1 million agreements may fall outside the scheme due to the regulator’s minimum commission thresholds.
The four legal challenges to the Financial Conduct Authority’s (FCA) motor finance redress scheme mean consumers are likely to read more about the Upper Tribunal in the coming months, particularly as the hearing timetable becomes clearer.
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.
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.