Dealers will get their first look at the FCA approach on the motor finance redress scheme when the London Stock Exchange closes for business later today.
It has arrived at this point following a consultation. It has said it believes a compensation scheme is the best way to ensure consumers who have lost out receive compensation in an orderly, consistent and efficient way.
The approach could be challenged by finance houses who want to avoid paying out an estimated £8bn in redress to customers with an additional £3bn in administrative costs.
Dealers have been watching closely. In late 2025 the National Franchised Dealers Association (NFDA) launched a new division to provide dealers with advice on finance and take them through the Financial Conduct Authority motor finance redress scheme.
NFDA Business Solutions, to provide members with support and guidance finance and Insurance (F&I) plus compliance.
It will support with FCA compliance in relation to the upcoming redress scheme following the Supreme Court ruling on motor finance, which NFDA was heavily involved in.
