What the FCA’s new motor finance redress scheme means for you
The FCA’s long-awaited consultation on the motor finance redress scheme, published on the 7th October, marks one of the most significant regulatory developments for the sector in recent years. After months of anticipation, firms now have greater clarity on the scope, methodology and expectations that will shape the industry’s response. To explore the practical implications, […]
14m unfair motor loans due compensation under FCA-proposed scheme
The FCA releases its update on the motor finance redress scheme, marking one of the most significant shifts in the motor finance landscape in years. The FCA wants to set up an industry-wide compensation redress scheme to reimburse motor finance customers who were treated unfairly from 6 April 2007 to 1 November 2024. The scheme […]
Navigating the FCA’s Pause on Motor Finance Complaints With the Right Talent
In a recent announcement, the Financial Conduct Authority (FCA) introduced a pivotal pause in the 8-week deadline for motor finance firms to address complaints involving discretionary commission. This strategic move is designed to afford firms the necessary time to comprehensively review and respond to complaints in a consistent and efficient manner. At the heart of […]
Insight on the Proposed Extension of the Complaint Handling Pause for Motor Finance DCAs
The FCA is proposing to extend the current pause on the 8-week deadline for firms to respond to consumer complaints about motor finance involving discretionary commission arrangements (DCAs) until at least December 4, 2025. This decision follows an ongoing review of the historical use of DCAs in the motor finance sector and recent legal developments. […]
Insight on Extending Rules for DCA Complaints in the Motor Finance Industry
The Financial Conduct Authority (FCA) is consulting on extending the temporary complaint handling rules for discretionary commission arrangement (DCA) complaints within the motor finance industry. This extension is necessary due to delays in collecting and reviewing data and the ongoing litigation that affects the sector. The FCA had initially planned to set out the next […]
Motor Finance: Your Key Steps to Operational Readiness
The motor finance sector has been in the regulatory spotlight recently, specifically concerning the potential requirement for remediation and redress of Discretionary Commission Arrangements (DCAs) and the emerging challenge of increased complaints relating to Affordability and Irresponsible lending. Momenta’s experts explore the main challenges and advise on the next steps for firms to improve their […]
Motor Finance: Preparing for the FCA’s Next Steps
On 5 June 2025, the FCA released a statement outlining key considerations for implementing a potential consumer redress scheme related to Discretionary Commission Arrangements (DCAs) in motor finance. This follows the Court of Appeal’s 2024 ruling, which deemed such commissions unlawful without informed customer consent, a decision currently under appeal at the Supreme Court. The […]
Navigating the Motor Finance Regulatory Landscape: How Firms Can Prepare
The FCA’s recent review of motor finance commission arrangements has thrust the industry into uncharted territory. Following the Court of Appeal’s October 2024 ruling that lenders must clearly disclose broker commissions and obtain informed consent, historic practices are under intense scrutiny. Courts are now considering whether to require compensation for customers mis-sold PCP and HP […]
Motor Finance Redress Scheme – What Do We Know Now?
On Sunday 3rd August 2025, the FCA confirmed it would consult on a compensation scheme which seeks to provide redress to consumers who were treated unfairly when taking out motor finance. This announcement followed Friday’s landmark ruling by the Supreme Court on three cases where the Court of Appeal had previously concluded that commission payments […]
Driving Change: FCA Redress and the Future of Motor Finance
The FCA’s proposed motor finance redress scheme has sparked concern across the sector, with many fearing the bar for “unfairness” is set too low – potentially widening complaint scope and increasing liability. During our recent webinar: Driving change – FCA redress and the future of motor finance, led by industry experts, we examined what the […]