FCA releases update on motor finance review next steps

In a major announcement this week, the Financial Conduct Authority (FCA) has issued a statement regarding its review of the past use of motor finance discretionary commission arrangements. If the Supreme Court’s decision (due 1-3 April) upholds the earlier Court of Appeal decision that motor finance customers have lost out from widespread failings by motor finance firms then the FCA will likely consult on an industry-wide redress scheme. Further confirmation about any scheme will be announced within six weeks of the court’s decision.  

Under a redress scheme, firms would be responsible for determining whether customers have lost out due to the company’s failings and they would need to offer appropriate compensation. 

If dealers receive any enquiries from customers about making a claim, they should be directed to the finance lender who will advise them how to file a claim. Further information about how customers can file a claim is on the FCA website here.