Earlier today, on 4 March 2026, the UK Financial Conduct Authority published a press release on its proposals to introduce a motor finance consumer redress scheme.
Some key messages are:
– The FCA says that “if we proceed with a scheme, we are likely to make several changes“.
– If a scheme is made, the FCA expects “to publish final rules in late March” and the timing “will be outside market hours and we’ll confirm the date in advance“.
– The FCA has not yet made any final decisions on any scheme.
– But the FCA proposes to “streamline the consumer journey to make it smoother for firms to operate“. These changes will include:
(a) removing the need to ask customers who have already complained if they want to opt out: instead consumers will be told within 3 months of the end of the implementation period if they’re owed compensation and how much.
(b) consumers receiving redress offers will be able to accept it straight-away; and
(c) firms will not need to communicate by recorded delivery: instead a range of channels will be acceptable to best meet a consumer’s needs while preventing fraud.
– The FCA is likely to introduce “an implementation period of 3 months, with up to 5 months for older agreements“.
– The FCA reminds consumers that there “is no need to use a claims management company (CMC) or law firm“.