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The Financial Conduct Authority’s (FCA) proposed motor finance consumer redress scheme is intended to make compensation more accessible for people harmed by car finance mis-selling.

Mercedes-Benz is bracing for a £424 million loss relating to motor finance redress payments, according to a report published by The Times on New Year’s Day.

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

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.

Nine ways to find old car finance records, from paperwork and bank statements to credit reports and subject access requests. You can complain now even if you do not have every document.

Discretionary commission arrangements allowed dealers to increase interest rates to earn more commission. We explain how they worked, how to check your agreement and the current position under the FCA redress scheme.