Disputes 180 Episode 7: Car Financing Compensation: Is This the Final Chapter?

 

The Financial Conduct Authority (FCA) has released its proposal on redress for motor finance cases — a significant development that could reshape how historic car finance complaints are handled. Episode 7 unpacks what’s happened and what’s happening next in the recent car financing cases, exploring what the FCA’s latest announcement means, the potential impact on consumers and lenders, the key details of the proposal and what the industry can expect in the months ahead.

Resources:

Car Financing Cases

Hopcroft Johnson Wrench Judgments

• 25 October 2024: Court of Appeal: Johnson and Wrench -v- FirstRand Bank, and Hopcroft -v- Close Brothers - Courts and Tribunals Judiciary
• 1 August 2025: Supreme Court: Hopcraft and another (Respondents) v Close Brothers Limited (Appellant); Johnson (Respondent) v FirstRand Bank Limited (London Branch) t/a MotoNovo Finance (Appellant); Wrench (Respondent) v FirstRand Bank Limited (London Branch) t/a MotoNovo Finance (Appellant)

Clydesdale Bank Judgment

• 17 December 2024: High Court (KBD): Clydesdale -v- Financial Ombudsman Service and others - Courts and Tribunals Judiciary

FCA announcement and updates:

• 7 October 2025: CP25/27: Motor Finance Consumer Redress Scheme
• 7 October 2025: FCA consults on motor finance compensation scheme | FCA
• 3 August 2025: FCA to consult on a compensation scheme for motor finance customers | FCA
• 30 July 2025: Update on motor finance work | FCA
• 5 June 2025 Key considerations in implementing a possible motor finance consumer redress scheme | FCA
• 11 March 2025: Statement on motor finance review next steps | FCA
• 19 December 2024: PS24/18: Further temporary changes to handling rules for motor finance complaints | FCA
• 19 December 2024: Firms given until December 2025 to respond to motor finance commission complaints | FCA
• 11 January 2024: FCA to undertake work in the motor finance market | FCA