UK · UKUT (TCC)Litigation
Upper Tribunal sets February 2027 hearing on challenges to FCA motor finance redress scheme
The Upper Tribunal will hear challenges to the Financial Conduct Authority's motor finance compensation scheme from February 16 to 26, 2027, the FCA said October 13, 2026. Three lenders and consumer group Consumer Voice are challenging the scheme, which remains partially suspended. The FCA told lenders to prepare for the scheme being quashed, while a claimant firm said drivers are turning to litigation.
Filing (Financial Conduct Authority) → · Law Society Gazette, Legal Futures
Key points
- The challengers are Volkswagen Financial Services, Mercedes-Benz Financial Services, Crédit Agricole Auto Finance and Consumer Voice, represented by Courmacs Legal.Financial Conduct AuthorityLaw Society Gazette
- Until the legal process ends, lenders need not calculate or pay compensation, but must keep preparing and progressing complaints.Financial Conduct Authority
- The FCA said it will defend the scheme robustly as the quickest, fairest and most efficient way to compensate consumers.Financial Conduct AuthorityLaw Society Gazette
- Lenders were told to plan for no scheme and no complaint-handling pause if the scheme or parts of it are quashed.Financial Conduct AuthorityLaw Society Gazette
- HD Law's Kevin Durkin cited a 311% rise in claims and estimated more than 45% would still need litigation.Legal Futures
Sources3 articles across 3 outlets
Financial Conduct Authority
Law Society Gazette
Legal Futures
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