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Car dealers’ ‘patchy’ records could make car finance redress scheme ‘unfair’ – FLA

  • Concerns raised that some firms’ records may be ‘patchy at best’
  • Finance and Leasing Association said it will be ‘interesting to see’ how dated information will be addressed
  • Scheme is expected to accept claims dating all the way back to 2007

Time 8:53 am, August 5, 2025

The FCA’s potential redress scheme for motorists who were mis-sold motor finance could run into difficulty as a result of car dealers’ ‘patchy’ records.

That is according to the Finance and Leasing Association (FLA), which has questioned whether any scheme will be able to stay ‘fair’.

Car Dealer reported yesterday that the FCA is to consult on a large-scale compensation package, which could reach as much as £18bn.

It came after the industry thought it would avoid mass payouts, following Friday’s Supreme Court ruling.

The FLA now says that it has ‘concerns’ over the potential scheme, given the historic nature of some of the claims.

The trade body says that firms are not required to hold data that goes back as far as 2007, which is when the redress scheme is expected to date to.

Expressing the group’s reservations, Stephen Haddrill, director general of the FLA, said: ‘We have concerns about whether it is possible to have a fair redress scheme that goes back to 2007 when firms have not been required to hold such dated information, and the evidence base will be patchy at best.

‘We will be interested to see how the FCA (Financial Conduct Authority) addresses this point in its consultation.’

The FLA previously welcomed the Supreme Court’s ruling in favour of lenders, describing it as an ‘an excellent outcome’ for dealers, lenders and customers.

You can read the court’s full verdict here.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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