1:12 pm, March 24, 2026
The Financial Conduct Authority (FCA) will announce details of its redress scheme on Monday, March 30.
The watchdog made the announcement on its website this morning (Mar 24), giving little detail.
‘We will set out our approach on motor finance redress shortly after markets close on Monday 30 March, having consulted on a compensation scheme in October 2025,’ the statement said.
Earlier this month, the FCA said it would likely be imposing an ‘implementation period’ to help streamline the process.
The regulator has been considering more than 1,000 responses to initial proposals, and confirmed that it will likely be adding an implementation period of three months, rising to five months for older agreements, due to the ‘scale and complexity of the scheme’.
At the time, the FCA said: ‘We are considering over 1,000 responses to our proposals for a compensation scheme for motor finance customers who were treated unfairly.
‘If we proceed with a scheme, we are likely to make several changes. If we do go ahead, we expect to publish final rules in late March. The timing of publication will be outside market hours and we will confirm the date in advance.
‘Final decisions on the scheme have not yet been made. But to help firms prepare and ensure consumers get any money owed promptly, we are setting out some details now on how we intend to streamline the consumer journey and make it smoother for firms to operate.
‘Given the scale and complexity of the scheme and in response to feedback, we are likely to introduce an implementation period of three months, with up to five months for older agreements. Firms could choose to process claims under the scheme sooner.
‘We would also streamline the process for consumers and firms.’
It might bring an end to an investigation the FCA has been pursuing since October 2025, having looked at means to give customers a way to receive compensation from motor finance agreements.
Although, as reported by Car Dealer in February, car manufacturer finance providers are expected to be exempt from the redress scheme, following ‘heavy lobbying’ from firms.
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