The FCA has provided an update on its progress towards a redress scheme for customers treated unfairly when taking out loans to buy cars. So far, in response to its consultation, it has received comments on:
- the time period for the scheme;
- the compensatory interest rate;
- using independent mechanisms such as the FOS and other approaches to ensure confidence;
- practical and cost-effective ways for smaller firms with only a small number of eligible agreements to operate the scheme;
- preventing fraud; and
- what the relationship between motor manufacturers and captive lenders means for commercial ties.
It encourages responses to provide as much evidence as possible but has received feedback that the data analysis will take time. As a result, it is extending the deadline for consultation responses until 12 December. It will as a result aim to publish its final rules in February or March 2026.
Meanwhile, the consultation on further pausing the complaints deadline is now closed and the FCA is considering responses – but it warns firms that the pause cannot last forever.