On 31 March 2026 the Financial Conduct Authority published policy statement PS26/3, confirming the final rules for its industry-wide motor finance Consumer Redress Scheme (PS26/3). 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). Both deadlines are currently suspended following four legal challenges to the scheme in the Upper Tribunal. The FCA is planning for a Tribunal decision in mid-November 2026 at the earliest, after which lenders are expected to begin making offers.
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 deadlines. We will update this once the Tribunal outcome is known.