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ARTICLE · 12 JUNE 2025

FCA Outlines Next Steps On Potential Motor Finance Redress Scheme

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On 5 June 2025, the United Kingdom's Financial Conduct Authority ("FCA") has published a statement ("Statement") setting out its current thinking on the possible implementation of a redress scheme...

United KingdomFinance and Banking
John Verwey
John Verwey
Rachel E. Lowe
Rachel E. Lowe
Sulaiman Malik
Sulaiman Malik
Michael Singh
Michael Singh
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On 5 June 2025, the United Kingdom's Financial Conduct Authority ("FCA") has published a statement ("Statement") setting out its current thinking on the possible implementation of a redress scheme for motor finance customers who may have been affected by discretionary commission arrangements ("Redress Scheme").

This follows the FCA's earlier decision to pause complaint handling in light of the pending appeals to the United Kingdom Supreme Court in Hopcraft & Ors (the "Supreme Court Appeals"). In March 2025, the FCA stated that if, following the outcome of the Supreme Court Appeals, it concludes that motor finance consumers have lost out, it is likely to consult on an industry-wide consumer Redress Scheme.

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