Motor Finance Commission Review
Update: 02 July 2026
On 02 July 2026, the Financial Conduct Authority (FCA) confirmed that parts of its motor finance compensation scheme have been paused while a legal challenge is considered by the Upper Tribunal. The FCA has stated that firms must continue to comply with all aspects of the scheme that have not been suspended.
The Upper Tribunal is expected to consider the legal challenge in December 2026 or February 2027. Until this process is finished, compensation assessments and payments under the FCA scheme are on hold.
If you already have an open complaint
If you’ve already complained to us about motor finance commission arrangements and we haven’t confirmed that your case is closed, we’re still reviewing it.
You don’t need to take any further action; we’ll contact you when we have further details or if we need more information from you.
As part of the FCA Motor Finance Consumer Redress Scheme lenders are required to issue a provisional redress decision which must contain a clear, plain-English explanation of your redress outcome (either that a redress offer is being made or explaining that no redress is due).
These communications contain important information about; how the redress decision outcome was reached; how you can accept or challenge the decision; and what your Financial Ombudsman’s rights are.
In addition to the information contained within your letters, please see the FCA links for more information above.
If you haven’t made a complaint
You can still do so using our online form. However, you don’t need to submit a complaint to be included in the FCA’s redress scheme.
What this means for compensation
At this stage, no decision has been made about whether compensation may be payable. The legal challenge means that firms are not currently required to calculate or pay compensation under the FCA's motor finance compensation scheme.
Once there is an outcome, we’ll follow the FCA’s requirements and let you know what happens next. If the outcome changes how complaints need to be handled, we’ll let you know what this means for your complaint.