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Advocacy group Consumer Voice has called on the Financial Conduct Authority (FCA) to ensure that consumers are put first in its car finance redress scheme, after publishing its response to the regulator’s recently closed consultation

In Technical Annex 2: State of Competition in the Motor Finance Market, published by the Financial Conduct Authority (FCA) alongside its car finance redress scheme proposals on 7 October 2025, the regulator notes that personal contract purchase (PCP) finance is the most popular type of motor finance arrangement for new vehicles.

The Financial Conduct Authority’s proposed motor finance redress scheme – covering an estimated 14.2 million car finance agreements taken out between 6 April 2007 and 1 November 2024, with average compensation of around £700 per agreement expected to be paid to consumers – has triggered a significant backlash from lenders, who are facing payouts totalling billions.

Lenders had mobilised their defences long before the Financial Conduct Authority (FCA) published its car finance redress scheme proposals and disclosed its estimate that 14.2 million motor finance agreements had been mis-sold between 6 April 2007 and 1 November 2024, with 11.4 million of those involving discretionary commission arrangements (DCAs).

The Financial Conduct Authority (FCA) has confirmed that the current pause on car finance complaint handling will end on 31 May 2026.

A prominent King’s Counsel who was involved in April 2025’s Supreme Court hearings in the Johnson, Wrench and Hopcraft test cases has warned that a judicial review of the Financial Conduct Authority’s (FCA) car finance redress proposals is ‘inevitable.’

A Financial Conduct Authority (FCA)-regulated claims management company says it has written evidence from a GAP insurance product administrator that car dealerships were allowed to set their own commission on such products.

The Financial Conduct Authority’s (FCA) proposed motor finance redress scheme means you do not need to instruct a solicitor to bring a car finance mis-selling claim and could receive any compensation that is due without charge.

The Financial Conduct Authority’s (FCA) car finance redress proposals cite discretionary commission arrangements (DCAs) as the mechanism most responsible for car finance mis-selling in the UK, stating that out of an estimated 14.2 million agreements taken out between 6 April 2007 and 1 November 2024 on which compensation is due, 11.4 million of them involved a DCA.

With the Financial Conduct Authority (FCA) estimating that 14.2 million car finance agreements were mis-sold in the UK between 6 April 2007 and 1 November 2024, the scale of the motor finance scandal is clear.