On 30 March 2026 the Financial Conduct Authority published policy statement PS26/3, confirming the final rules for its industry-wide motor finance Consumer Redress Scheme. The rules follow the FCA's October 2025 consultation (CP25/27) and the Supreme Court's August 2025 judgment.
Who is covered
The scheme covers PCP and HP agreements taken out between 6 April 2007 and 1 November 2024 where one of three triggers applies: an undisclosed Discretionary Commission Arrangement, a high fixed commission exceeding 39% of the total cost of credit and 10% of the loan, or an undisclosed tied or exclusivity arrangement.
How redress is calculated
The FCA confirmed that compensation will be calculated using a more generous interest rate methodology than originally consulted on. As a result the average payout has risen from approximately £700 at consultation to £829 per agreement under the final rules.
Timeline
The original implementation deadlines were 30 June 2026 for Scheme 2 (post-2014 agreements) and 31 August 2026 for Scheme 1 (pre-2014 agreements). Editor's note (October 2026): both deadlines were suspended by the Upper Tribunal on 2 July 2026 while four legal challenges are heard. The hearing is fixed for 16 to 26 February 2027 and the FCA expects payments to begin in 2027 if the scheme is upheld. See our October 2026 update.
The 31 August 2027 cut-off for consumers to raise a complaint if not contacted by their lender is likely to shift in line with the revised implementation timetable. We will update this once the Tribunal outcome is known.