FCA publishes CP25/27 Motor Finance Consumer Redress Scheme
The Financial Conduct Authority (FCA) has launched a consultation on a proposed industry-wide Consumer Redress Scheme (CRS) for motor finance customers who may have been affected by inadequate disclosure of commission arrangements between lenders and brokers. The scheme proposed in CP25/27 Motor Finance Consumer Redress Scheme covers regulated motor finance agreements—including personal contract purchase (PCP), hire purchase (HP), and conditional sale agreements—entered into between 6 April 2007 and 1 November 2024, where commission was payable by the lender to the broker. It is intended to apply to individuals, sole traders, and small partnerships, including agreements from Gibraltar-based firms. The FCA’s review of 32.5 million agreements found widespread failures in commission disclosure, with an estimated 14.2 million agreements (44%) considered unfair. The scheme is designed to provide redress, reduce administrative costs, and protect market integrity. The deadline for responses to the redress scheme proposals is 18 November 2025, with a separate deadline of 4 November 2025 for comments on extending complaint handling timeframes.