FCA redress scheme for Mis-sold Car Finance
The Financial Conduct Authority (FCA) is today, 7th October, due to publish its long-anticipated proposal for an industry-wide redress scheme for motor finance customers who may have lost out because of undisclosed or unfair commission arrangements.
Key points:
- The FCA committed to publishing a consultation on this redress scheme by early October 2025.
- The scheme aims to compensate customers who were treated unfairly, especially in cases where car dealers could adjust interest rates as part of their commission (discretionary commission arrangements, or DCAs) without proper disclosure.
- The first payments are expected in 2026, subject to finalising the scheme.
Next Steps for Clients
It is important to remember that the rules released today are a proposal. The FCA will consider feedback from all stakeholders, including our response, before finalising the scheme later this year.
Bott and Co remain dedicated to achieving the best possible outcome for our mis-sold motor finance clients. We will monitor the FCA announcement closely and contact clients with clear next steps and guidance once the full proposal is released.