Legal challenges to the Financial Conduct Authority’s motor finance compensation scheme will be heard by the Upper Tribunal between February 16-26, 2027. A judgement is expected in the months following the hearing, which means lenders, car dealers and consumers will have to wait longer for clarity over the £9bn redress scheme.
The February hearing will consider challenges to the redress scheme, which was designed to compensate customers affected by historical motor finance commission arrangements.
Whilst parts of the compensation scheme remain suspended, the FCA said finance providers must continue preparing for the scheme. However, lenders have been told to plan for the possibility that the scheme, or parts of it, could be rescinded.
https://www.am-online.com/news/motor-finance-redress-challenge-set-for-february-2027