The Financial Conduct Authority has published its long-awaited consultation on an industry-wide Consumer Redress Scheme for motor finance mis-selling. The consultation, which runs until 18 November 2025, sets out the FCA's proposed approach to compensating affected consumers.
What the scheme proposes to cover
The proposed scheme covers regulated motor finance agreements with commission arrangements between lenders and brokers entered into between 6 April 2007 and 1 November 2024. The FCA estimates this covers just over 14.2 million agreements, around 44% of all motor finance written since 2007.
How much could consumers receive?
At this stage the FCA has indicated that most payouts are likely to be in the region of £700 per agreement, though compensation will vary depending on the size of the finance agreement, the commission rate applied, and the level of disclosure.
Note: The confirmed figure following the final rules in March 2026 is £829. See our latest update for current figures.
Timeline from here
- Final scheme rules: expected early 2026
- Scheme launch: expected later in 2026
- Complaint handling pause lifts: 31 May 2026