Jurisdiction(s):
United Kingdom

UK motor finance: FCA regulation, DCA ban, commission disclosure and redress—Consumer Duty, CCA unfair relationships, Johnson Supreme Court and the 2026 industry-wide redress scheme

Published by a LexisNexis Financial Services expert

Practice notes

This Practice Note

This Practice Note outlines the motor finance sector and the Financial Conduct Authority’s (FCA) review of firms’ historic use of discretionary commission arrangements (DCAs) between lenders and credit brokers. It includes:

background on the FCA’s work in this area
an introduction to motor finance, covering the main forms of motor finance
the regulated activities that apply to motor finance
the core regulatory obligations relevant to motor finance, spanning the FCA Handbook and the Consumer Credit Act 1974 (CCA 1974)
an outline of how to raise complaints about firms in the motor finance market and when to refer a matter to the Financial Ombudsman Service (FOS)
analysis of recent high-profile matters in motor finance, including the Supreme Court’s landmark judgment in Johnson v FirstRand Bank Ltd (London Branch) (trading as MotoNovo Finance) and other cases
the FCA’s Policy Statement PS26/3: Motor Finance Consumer Redress Scheme (CRS), establishing an industry-wide scheme to provide redress for motor finance customers treated unfairly between April 2007 and November 2024
links to key motor finance cases, supporting guidance and materials...

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Web page updated on 22/05/2026

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