The Finance & Leasing Association (FLA) has emphasised the important of securing legal clarity in relation to motor finance redress.
The Upper Tribunal has scheduled a nine-day hearing beginning on 16 February 2027. This hearing will consider the legal challenges to the Financial Conduct Authority’s consumer motor finance redress scheme.
A statement from the FLA read: “Resolving these challenges is therefore about more than the implementation of a redress scheme.
“It is about maintaining trust and supporting a competitive, sustainable market that continues to provide access to affordable motor finance.
“The FLA will continue to follow the proceedings closely with its members.”
Despite the prolonged uncertainty, the FLA notes the hearing will ensure redress arrangements are fair, proportionate, and workable.
Elsewhere, Volkswagen Financial Services UK (VWFS) has welcomed the news that its motor financial legal challenge in the Upper Tribunal will be heard in February 2027.
The Upper Tribunal granted the VWFS request for expert evidence and disclosure of specific data and analysis the FCA relied on to design its proposed redress scheme.
A spokesperson for VWFS said: “VWFS welcomes the Upper Tribunal’s decisions requiring the FCA to disclose the data and analysis underpinning its proposed redress scheme and permitting the use of expert evidence in these proceedings.
“We have consistently said that we support redress where customers have been genuinely disadvantaged. However, it is important that any scheme is fair, properly targeted, and lawful. We do not believe the FCA’s proposed scheme meets those principles, which is why we have brought this appeal.
“The Tribunal’s decisions will ensure that it has access to the evidence necessary to properly assess the FCA’s proposals.”
