FCA extends consultation deadline on motor finance redress scheme

The FCA has issued an update on its motor finance compensation scheme consultation. The consultation window has now been extended to 5pm on 12 December, with final rules still expected in early 2026 (February or March). 

Key points highlighted include ongoing discussion on how redress should be calculated, the treatment of commercial ties, the rate of compensatory interest, and how smaller firms can operate the scheme in a cost-efficient way. The FCA also stressed that complaint pauses cannot continue indefinitely, so firms should continue preparing for delivery. 

Read more here. 

If you’d like to talk through the update, develop your consultation response, or sense-check planning and governance, we’re here to help.  Contact us if you would like to chat.