The FCA has confirmed that its consultation on an industry-wide compensation scheme for mis-sold motor finance has been extended. This gives consumer groups, lenders and law firms more time to help shape how redress will work for millions of consumers who were mis-sold motor finance.
At Bott and Co, we’re closely involved in the fight for fair compensation, and this development gives us more time to campaign for a transparent and fair scheme that delivers meaningful payouts.
What has the FCA announced?
- The consultation deadline has been extended to 5pm on 12th December 2025
- The scheme is intended to compensate customers unfairly charged on motor finance agreements between 2007 and 2024
- Final rules are expected in early 2026
- The FCA emphasises that complaints cannot be paused indefinitely and that lenders must maintain pace so the issue can be brought to a conclusion and consumers receive clarity.
This follows a series of significant court judgments, including a Supreme Court ruling, confirming that motor finance lenders may owe redress for unfair commission arrangements.
Final rules are expected in early 2026 (likely February or March).
Why this is good news for Motor Finance claimants
This extension may feel like a delay, but it’s actually an important step forward. It should allow for stronger protection, consistency and rightful justice, and ensure people aren’t left fighting lenders alone.
The acknowledgment that liabilities exist strengthens the position of many mis-sold motor finance clients and supports the argument that you may be due compensation if you were treated unfairly.
Bott and Co Continue to Work on Behalf of our Mis Sold Motor Finance Clients
With a clear consultation timeline, we now have a stronger framework to work towards, helping our team plan your claim strategy with greater certainty.
You don’t have to wait for the scheme if your claim is ready to progress.
The method of calculating redress (including interest and compensation formulas) is still under consultation, meaning final payouts and timeframes aren’t yet confirmed. Acting sooner can help ensure your evidence and paperwork are ready so your claim can proceed without delay.
At Bott and Co, we’re here to guide you through every stage of your mis-sold motor finance claim, whether the FCA scheme is in place yet or not. This update is a positive sign of progress, but there is still work to do to ensure consumers are properly compensated.
We remain firmly committed to supporting those who have been unfairly charged, ensuring the process is accessible, and making sure nobody is pressured into accepting less than they’re owed.