The Financial Conduct Authority (FCA) has published its consultation paper relating to the motor finance redress scheme that follows August’s Supreme Court ruling. The consultation will run until 18 November with an expectation that the scheme will be operational early next year.
Read the full consultation paper online.
Regulated consumer hire agreements are not due to be covered by the scope of the redress scheme. As per paragraph 4.11 of the consultation paper, the exclusion is because the unfair relationship provisions under s140A of the Consumer Credit Act do not apply to these agreements.
Paragraph 4.61 also sets out “that the terms of the consultation paper are for motor finance scheme cases only and not intended to establish a benchmark for other finance products.”
The extensive consultation paper outlines the rationale behind the proposed redress scheme, the role of the Financial Ombudsman Service, and stages of the proposed delivery. There are 95 questions which industry stakeholders and interested parties are invited to share their views on before the 18 November 2025.
An earlier deadline of 4 November is in place for feedback on how long firms are given to provide a response to motor finance complaints that were previously subject to a pause. The pause is currently due to end on 4 December 2025, with complaints subject to the pause required to be resolved within eight weeks following the pause lifting (see paragraphs 11.7-11.2).
The BVRLA will continue to digest the full contents of the paper and assess the potential impacts, seeking input from members in conjunction with receiving legal counsel. Further details on member support and any clarity on relevant aspects of the consultation will be shared in due course.
Members with any questions or concerns on this issue should email the team via [email protected]
Costas Pittas from the Financial Conduct Authority will be addressing members as part of the BVRLA’s Leasing Broker Conference on Thursday this week. A small number of tickets are available for members wishing to attend.
Visit leasingbrokerconference.co.uk to secure a space.
