Motor Finance Commission Mis-Selling Redress Scheme: FCA's Plans for 2026
The Financial Conduct Authority (FCA) has announced plans to finalize rules for a redress scheme for motor finance commission mis-selling claims by late March 2026. Following a consultation that received over 1,000 responses, the FCA is likely to make changes to the proposed compensation scheme. Lenders would have a three-month implementation period to pay out redress, with up to five months for older motor finance agreements. Consumers would be informed within three months of the end of the implementation period about any owed compensation, with the possibility of accepting immediately without waiting for a final determination.
The FCA aims to streamline the process to ensure that millions of people receive compensation in 2026.