Information for lenders and brokers affected by our work on the use of commission in the motor finance industry.
1 May 2026: Our compensation scheme has been legally challenged[2]. We will defend it robustly as lawful and the best way to resolve such a widespread, long-running and complex issue. We will provide further advice to firms next week.
8 May 2026: We’ve published a separate statement[3] setting out our expectations for firms following the challenge.
11 June 2026: We've updated this page with a document providing further information on a number of aspects of the scheme.
Redress scheme
We've launched an industry wide scheme to compensate motor finance customers who were treated unfairly.
The Supreme Court and High Court, and our own review of motor finance agreements, make it clear that firms broke laws and regulations in force at the time by failing to disclose important information to customers.
For our complete rules and guidance, read our policy statement[4].
Preparing for complaints handling
You should continue to prepare for the scheme or for no-scheme options. Work that would likely be needed in all scenarios includes:
- Identifying relevant complaints and agreements.
- Gathering the data needed to identify commission arrangements and disclosure practices, including where information is held by brokers.
- Working with claims companies to resolve instances where consumers are represented by more than one party.
- Cooperating fully and promptly with the Financial Ombudsman Service on any existing complaints that have been referred to it.
Read more about contingency planning[5].
Reporting to us
You should already have submitted your Scheme Implementation Plans, one-off data and 6-week delivery forecast. Monthly reporting is suspended during the legal challenges.
When to get in touch with us
We expect you to tell us at the earliest opportunity of any issues that may have a material impact on you or your firm’s ability to either deliver an FCA-led scheme or handle motor finance commission complaints under DISP. This can include but is not limited to:
- Any issues that may impact on your financial resilience.
- Any issues that may impact your operational resilience.
- Any issues that may impact your ability to carry out scheme steps.
Any information can be sent to us via the SUP 15 notification form[6]. If you have a named supervisor, you should also notify them at the earliest opportunity.
More information
Since publishing our policy statement,[4] we've heard that more information would help firms understand and prepare for the scheme.
The information in this document is based on queries we’ve received and aims to answer those relevant for a broader audience. If you have any specific questions not covered, please get in touch with your supervisor, or email [email protected].
You should read this document in the context of the ongoing legal challenge to the scheme. We may need to update this document or take further steps in relation to the scheme rules or guidance, as that challenge continues. You should monitor our announcements closely.
Read our further information for firms (PDF)[7]
You can also use our table to jump to relevant sections in the document.
