The FCA has published the latest in its series of Regulatory Priorities reports, with the Consumer Finance Regulatory Priorities report released on the 17th March 2026. This follows the Insurance, Consumer Investments and Pensions reports published in February and March, with nine reports planned in total across retail and wholesale markets.
These reports are important for all firms. They set out the FCA’s supervision priorities, explain how it intends to enable innovation and include the section “What we expect firms to do” that should serve as a baseline for self-assessment and gap analysis. The Consumer Finance report is directed at enders, hire firms, credit brokers, debt advice providers, debt collectors, credit reference agencies, claims management companies and credit unions.
1.Consumers can access credit that meets their needs
The FCA opens with a telling statistic: while 79% of UK adults held at least one regulated credit agreement in May 2024, 3.2 million adults had applications declined in the preceding two years – and 45% of those could not access the credit they needed at all.
The FCA expects lenders and credit brokers to lend responsibly, offer well-designed products that represent fair value and actively consider how to extend access to currently excluded consumers. It is encouraging firms to explore alternative data sources – such as open banking – for consumers with limited credit histories. The regulator’s own activity this year includes a review of its regulatory framework alongside Consumer Credit Act reform, a review of the high-cost short-term credit price cap and a forthcoming consultation on CONC Chapter 3.
It’s important for firms to now assess whether affordability and risk assessment processes may be inadvertently excluding consumers who could be served responsibly and engage with the FCA’s Innovate function if exploring alternative data sources. Monitoring the CONC Chapter 3 consultation closely is also integral, as its aim is to modernise rules on financial promotions and communications.
2. Firms must support consumers struggling with debt
The FCA’s Financial Lives Survey found that of the 1.3 million credit holders who received payment support in the two years up to May 2024, 23% could not select a support option that suited their needs. The regulator is clear that forbearance and debt advice quality are not consistently hitting the mark.
The FCA expects appropriate support to be accessible without unnecessary barriers, with debt advice tailored to individual circumstances and communications that enable timely, well-informed decisions.
Areas of compliance focus should include an audit of customer journeys for those in financial difficulty. Firms should consider if forbearance options are proactively surfaced and if debt advice genuinely tailored. Outcomes monitoring should capture how consumers in financial difficulty are actually being served – not just whether support options exist on paper.
3. Consumers must be able to complain and get appropriate redress
This is a high-stakes FCA consumer finance priority for many firms, particularly those with motor finance exposure.
The FCA expects all firms to handle complaints properly, maintain adequate records, conduct root cause analysis and hold sufficient financial resources to meet actual and potential liabilities. For motor finance firms, active preparation for a potential redress scheme is required. The FCA consulted on a Motor Finance Consumer Redress Scheme (CP25/27), with final rules expected in late March 2026. The pause on Personal Contract Purchase (PCP) and Hire Purchase (HP) commission complaints lifts on 31st May 2026. For claims management companies, the FCA expects services that progress only complaints with genuine merit and it is actively monitoring financial promotions and charging practices.
Motor finance firms should urgently assess redress liabilities and ensure sufficient financial resources are now in place. It’s also imperative for firms to review complaint-handling frameworks to ensure root cause analysis is meaningfully embedded. TCC Group has dedicated expertise in motor finance compliance and redress remediation and can support firms in building a robust operational response.
Additional FCA consumer finance compliance areas to watch
Buy Now Pay Later regulation: Final rules under PS26/1 take effect on 15th July 2026. Firms without consumer credit permissions must notify the FCA for the Temporary Permissions Regime. Systems and controls should be under review now.
Consumer Duty and Appointed Representatives (AR). The AR population in consumer finance has grown faster than in other sectors. The FCA is using data to target the highest-risk principals and their ARs. Firms should review their AR oversight frameworks accordingly.
Data-driven supervision. The FCA will use enhanced regulatory returns data – including the new CCR009 return – to identify outliers and act. Firms doing the right thing can expect lighter-touch supervision; those that are not should expect scrutiny.
AI in financial services. The Mills Review into AI’s impact on retail financial services is ongoing, with findings expected in H2 2026. AI governance should be on every compliance agenda now.
How Momenta can support your consumer finance compliance
Understanding the FCA’s consumer finance regulatory priorities is only the first step. The onus is now on firms to translate them into honest self-assessment and, where gaps exist, a structured action plan with clear timelines, deliverables and accountable owners – reviewed at an appropriate governance level.
At Momenta, we support consumer finance firms with regulatory gap analysis, Consumer Duty adherence, complaint handling, redress calculations and motor finance redress remediation. If you would like to discuss how the FCA’s consumer finance priorities affect your firm, get in touch with our regulatory experts.
