8:31 am, December 15, 2025
The FCA has officially wrapped up its consultation on a proposed redress scheme for customers impacted by the motor finance scandal.
The regulator has been taking submissions from across the industry since October, ahead of a potential scheme being rolled-out shortly.
The window came to an end last Friday (Dec 12) and experts have now raised concerns around the ‘fairness, simplicity, finality, efficiency and certainty’ of the group’s proposals.
Last month, the FCA announced details of compensation scheme for customers, confirming around 14m car buyers will get payouts of around £700 if it goes ahead.
The Finance & Leasing Association (FLA) has warned that any scheme should be limited to ‘only those consumers who have actually suffered loss’.
The trade body has now called on the FCA to ‘recalibrate’ the scheme in light of mounting concerns.
Bosses say it is crucial that any repayment scheme protects consumers’ long-term access to affordable credit; avoids awarding redress where no unfair relationship arose and is ‘operationally deliverable within a realistic implementation period’.
Shanika Amarasekara, CEO of the FLA, said: ‘Our submission is the product of extensive analysis by industry practitioners, economists and leading experts from across the motor finance market.
‘The most important point is simple: a redress scheme must provide redress to those who have suffered loss as a result of an unfair credit relationship.
‘Where we differ from the FCA’s proposals, it is because the evidence shows there are fairer, more targeted and more efficient ways to achieve that outcome.
‘All eyes are now on the regulator and the industry. The best result is one where we work together to deliver redress swiftly to those who need it, protect consumers’ future access to finance, and create a scheme that is workable and credible for all.’
The FCA consultation had originally been due to end on November 18 but the deadline was extended to last Friday due to the volume of responses.
The regulator said earlier this year that it expects to publish its final decision in ‘either February or March’ 2026.
