Motor Finance Consumer Redress Scheme

The FCA introduced the scheme on 30 March 2026. However, following legal challenges, the Upper Tribunal partially suspended the scheme on 1 July 2026. The FCA continues to defend the scheme. Parts of the scheme remain in force and lenders must comply with rules that have not been suspended.

The FCA says the legal challenges are scheduled to be heard on 14–18 December 2026 or 16–26 February 2027, subject to the Tribunal process. See When should I expect a response if I’m not owed compensation? above for information about certain response dates that remain applicable.

If you have already complained, you generally do not need to submit the same complaint again. The partial suspension has affected parts of the scheme timetable, including the calculation and payment of compensation under the suspended provisions.

If you have not complained and have concerns about historic motor finance, you can contact Marsh Finance directly and free of charge.

Some compensatory interest included in a redress payment will generally be subject to income tax. Where tax is required to be deducted, it may be deducted at source at the basic rate.

The tax treatment of an individual payment depends on the customer's circumstances. The FCA cannot provide individual tax advice.

No. You can complain directly to Marsh Finance without using a CMC or solicitor. The FCA's redress scheme is free for consumers to use.

If you choose to use a professional representative, make sure you understand the fees and contract terms before signing up.

Ownership of the vehicle now is not, by itself, the test for scheme eligibility. The FCA scheme is based on the relevant motor finance agreement, its date, the applicable commission arrangement and the other scheme rules.

An agreement or account number can help us locate your records, but if you do not have it, you can still contact us. Providing your name, vehicle registration and approximate agreement date may help us identify the account.

If an agreement is outside the scheme's scope or an exclusion or exception applies, it may not qualify for redress under the scheme. If you disagree with an outcome, we will explain the applicable complaint route in our response.

If you or someone acting for you has already issued court proceedings relating to the same motor finance agreement, please tell us. Different scheme rules apply to these cases and, depending on the status of the proceedings, Marsh Finance may continue or pause consideration of the case under the scheme.

If you are considering staying or withdrawing court proceedings, you may wish to obtain independent legal advice as this could affect your legal rights or costs.

Please tell us if you need additional support or have circumstances that may affect how you are able to communicate or deal with your complaint. We will consider appropriate support in line with our regulatory obligations.

The treatment of any redress against an outstanding balance is governed by the FCA scheme rules and the circumstances of the agreement. If redress becomes payable, we will explain how the rules apply to your case.

The FCA identifies three relevant commission arrangements:

• Discretionary commission arrangements (DCAs) – where a broker could adjust the interest rate to obtain a higher commission.

• High commission arrangements – arrangements meeting the thresholds and other requirements in the scheme rules.

• Tied arrangements – certain contractual arrangements between a lender and broker, subject to the detailed tests and exceptions.

The detailed definitions and eligibility tests are set out in: CONRED 5 and CONRED 6.

The FCA has warned consumers not to sign up with more than one CMC or law firm for the same claim because this may result in multiple fees and representation issues.