You may have heard in the news that the Financial Conduct Authority (FCA) is proposing a consumer redress scheme for motor finance customers. Below, we’ve explained what this means and what you need to do – if anything – at this stage.
The FCA’s proposal follows its review into how some lenders and brokers used commission arrangements when setting interest rates on car finance. The scheme is still in consultation, and the FCA is gathering feedback from across the industry. It’s expected to launch in early 2026.
What the scheme means for customers
The scheme will be managed by lenders, not brokers like Evolution Funding.
If you had a regulated motor finance agreement between 6 April 2007 and 1 November 2024, and your agreement included certain types of commission arrangements, your lender will review your case once the scheme is live.
The FCA expects lenders to contact customers who are eligible for redress. You don’t need to do anything now.
If you’d like to make a complaint
If you have a question or want to make a complaint about how your car finance was arranged, please contact your lender directly.
They are responsible for investigating and responding to customer complaints under this proposed redress scheme.
Please note that Evolution Funding cannot review or resolve complaints related to the FCA’s proposed redress scheme, as this process will be handled entirely by lenders.
If you’re not sure who your lender is, you’ll find their name on your finance agreement or credit documents.
Find out more
You can read the full FCA consultation and latest updates here:
CP25/27: Motor Finance Consumer Redress Scheme | FCA