In a statement, the Financial Conduct Authority said its motor finance compensation scheme has been challenged, while maintaining that the scheme is the quickest, fairest and most efficient way to compensate consumers. It said the challenge will delay consumers getting their money back and prolong uncertainty for those involved, which it linked to investment conditions and the health of the motor finance market. The FCA said it is considering its approach and will provide more detail later this week.
Financial Conduct Authority 2026-04-27
Financial Conduct Authority says motor finance compensation scheme has been challenged and will set out its approach later this week
The Financial Conduct Authority confirmed that its proposed motor finance compensation scheme has been legally challenged, which it says will delay redress payments and prolong uncertainty for consumers and the motor finance market. The authority maintains the scheme is the quickest and fairest route to compensation and is considering its approach, with further details to follow.