What FCA firms need to do now

On the 30th March 2026, the FCA published its final motor finance consumer redress scheme – the largest structured redress exercise the UK retail lending market has faced since PPI. The clock is already ticking, with multiple regulatory obligations now in force. Motor finance providers must act quickly to assess their exposure, prepare for redress and demonstrate fair treatment of customers.

What is the FCA’s motor finance consumer redress scheme?

The FCA’s motor finance consumer redress scheme addresses widespread historic inadequate disclosure of commission arrangements, giving rise to unfair relationships under section 140A of the Consumer Credit Act 1974.

Two separate schemes apply:

• Scheme 1 covers agreements from 6th April 2007 to 31st March 2014

• Scheme 2 covers agreements from 1st April 2014 to 1st November 2024

An estimated 12.1 million agreements are in scope – a reduction of 2.1 million from the FCA’s October 2025 estimate – but still representing significant potential redress exposure across the market.

Read our expert insight for the full breakdown and timelines

Why motor finance firms must act now

• High redress exposure: Market commentary suggests potential multi-billion-pound redress liabilities if firms fail to act decisively.
• Regulatory scrutiny: The FCA has been explicit that firms must evidence fair treatment, credible governance and proactive remediation.
• Reputational risk: Poor handling of motor finance complaints or redress may cause long-term damage to consumer trust.
• Operational strain: Unprepared firms risk being overwhelmed by a surge in complaints, data reviews and remediation activity.

Advance your motor finance readiness with TCC expertise

TCC Group has supported financial services firms with complex regulatory change, remediation and redress programmes for over 20 years.

We help motor finance providers to:

• Assess and quantify risk across your historic motor finance portfolios
• Design FCA-aligned redress methodologies
• Strengthen governance and complaint-handling processes
• Rapidly deploy skilled resources to manage reviews, remediation and complaint surges

AI-powered motor finance review technology

In partnership with our technology partner Recordsure, TCC offers AI-powered speech and document analytics to support motor finance redress preparation at scale. Recordsure’s technology rapidly reviews historic customer interactions – across recorded calls, meetings, emails and documents to identify evidence of commission disclosure (or lack thereof) at scale.

This dramatically reduces the burden of manual reviews, ensures greater accuracy and accelerates decision-making, helping you uncover potential risks, demonstrate fair treatment and respond swiftly to FCA requirements.

Scalable support 

We also partner with our sister company Momenta to quickly scale resourcing for complaint handling and remediation. Their specialist talent pool helps you efficiently manage a surge in demand, while TCC ensures regulatory accuracy and oversight.

Are you ready for the motor finance compensation scheme?

Firms that act now are better placed to understand their exposure and respond effectively. Beyond preparing for potential redress, early action helps demonstrate a serious approach to fairness and accountability to the regulator, customers and stakeholders.

Download our Motor Finance Redress Readiness Checklist

Read our latest Motor Finance Consumer Redress Guide

Speak to TCC about preparing for the FCA Motor Finance Redress Scheme

Talk to TCC experts today

Get in touch to find out how we can help you build a proactive response to motor finance