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ARTICLE · 21 APRIL 2026

FCA Finalises Motor Finance Consumer Redress Scheme

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The Financial Conduct Authority has introduced a comprehensive Motor Finance Consumer Redress Scheme aimed at compensating consumers affected by historic failings in motor finance agreements...

United KingdomFinance and Banking
Chris Chapman
Chris Chapman
Devi Shah
Devi Shah
Oliver Williams
Oliver Williams
Beth Mills
Beth Mills
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On 30 March 2026, the FCA published its policy statement (PS26/3) on the Motor Finance Consumer Redress Scheme (the "Scheme"). The Scheme is intended to address historic failings in motor finance agreements which, in the FCA's view, created "unfair relationships" contrary to Consumer Credit Act 1974.

The Scheme is free for consumers to use, with the aim being to ensure that consumers receive redress for the breaches consistently and efficiently. The ultimate goal set out by the FCA is to return £7.5 billion to consumers, with claims paid out in 2026 and the majority settled by the end of 2027. Consumers who have already had their complaint considered by the Financial Ombudsman, had their claim determined by a court, or accepted redress will be excluded from the Scheme. In addition, claims for high-value loans (higher than 99.5% of other loans that year) will also be excluded from the Scheme.

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