FCA Clarifies Requirements for Car Finance Settlement Offers
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On November 3, 2026, the UK Financial Conduct Authority (FCA) said that while legal challenges to the car finance compensation scheme are ongoing, lenders may still make settlement offers to eligible customers, but the offer amount must not be lower than the scheme standard. Firms must explain the consequences of accepting an offer and provide the explanatory document published by the FCA; customers may also reject a settlement and continue to pursue their claims through the compensation scheme. An FCA survey found that 89% of relevant customers want the option to accept a compensation offer now, and 61% said they would accept an offer that meets the scheme standard.
AI-written from reports · updated 2 hours ago
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- FCA (UK)SelectedFCA clarifies requirements for firms offering motor finance redress settlements
FCA clarified that, while legal challenges are ongoing, lenders may offer settlements to customers eligible for motor finance redress, but the amount must not be below the redress scheme’s standard. Firms must explain the consequences of accepting an offer and provide customers with an explanatory document published by FCA; customers can reject the offer and continue to have their claim handled through the redress scheme. A survey found that 89% of relevant customers want the option to accept a redress offer now, and 61% said they would accept an offer that meets the scheme’s standard.
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