Motor Finance Redress: The Way Ahead

Following publication of the Financial Conduct Authority’s consultation paper on a motor finance consumer redress scheme (CP 25/27), the deadline for comments on the proposed extension of the complaints handling pause has now passed but the FCA has announced an extension of time to 12 December 2025 for remaining feedback on the proposed scheme. Our specialist motor finance team includes contentious and advisory lawyers and risk and compliance professionals who continue to support a range of clients in connection with these developments both within motor finance and in other potentially impacted sectors. This resource page has been designed to help firms manage and respond to the key issues, with a range of updates and other insights from the team.

Please get in touch with any of the contacts listed below if a discussion would be of interest.

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Insights

Motor finance compensation scheme consultation progress and timing

On 5 November 2025, the FCA issued a statement providing an update on the consultation proposals for its motor finance consumer redress scheme CP25/27.

Global | Articles | November 05, 2025

FCA webpage for motor finance redress scheme: Data room update

On 20 October 2025, the Financial Conduct Authority (FCA) updated its webpage which sets out the consultation proposals for its motor finance consumer redress scheme CP25/27.

Global | Articles | October 21, 2025

FCA updates webpage for motor finance redress scheme

On 15 October 2025, the Financial Conduct Authority (FCA) updated its webpage which sets out the consultation proposals for its motor finance consumer redress scheme CP25/27.

Global | Articles | October 16, 2025

FCA consultation on motor finance consultation scheme

On 7 October 2025, the Financial Conduct Authority (FCA) published a consultation paper setting out its proposals in relation to setting up an industry-wide redress scheme to compensate motor finance customers who were unfairly treated between 2007 and 2024.

Global | Articles | October 08, 2025

FCA motor finance redress scheme: Nine points to help firms navigate the proposals

The FCA’s consultation paper on a motor finance consumer redress scheme (the Scheme) has now been published in CP 25/27.

Global | Articles | October 08, 2025

FCA announces release date of motor finance redress scheme consultation

On 6 October 2025, the Financial Conduct Authority announced it will issue a statement and publish a consultation on its proposed motor finance redress scheme on Tuesday 7 October 2025 after markets close.

Global | Articles | October 06, 2025

Motor finance redress scheme: FCA and House of Lords Financial Services Regulation Committee correspondence

On 8 August 2025, there was published correspondence between Lord Forsyth of Drumlean (Chair, House of Lords Financial Services Regulation Committee) and Nikhil Rathi (Chief Executive of the FCA) concerning the proposed motor finance redress scheme.

Global | Articles | August 11, 2025

Hopcraft: FCA to consult on a compensation scheme for motor finance customers

Following the Supreme Court’s judgment in Hopcraft the FCA issued a statement, on 3 August 2025, in which it confirms that it will consult on an industry-wide redress scheme to compensate motor finance customers who were treated unfairly.

Global | Articles | August 04, 2025

Supreme Court judgment in Hopcraft appeals: Defining the legal boundaries of broker-lender relationships in motor finance

On 1 August 2025, the Supreme Court handed down its judgment in three conjoined appeals concerning the payment of commission by finance lenders to motor dealers in connection with the provision of finance for the hire purchase of cars, where that commission is either not disclosed, or only partly disclosed, to the hirers of the cars.

United Kingdom | Publication | August 04, 2025