NFDA Responds to Further Delay to FCA Motor Finance Redress Scheme

National Franchised Dealers Association (NFDA) has noted comments from Nikhil Rathi, Chief Executive of the Financial Conduct Authority (FCA), indicating that compensation payments under the proposed motor finance redress scheme are now increasingly unlikely to begin before 2027 due to ongoing legal challenges. The delay means consumers, lenders and automotive businesses will continue to face uncertainty while the FCA works towards a final resolution.

Commenting, Sue Robinson, Chief Executive of NFDA, said:

‘It is disappointing that the process continues to face delays. Consumers and businesses alike have been waiting a long time for certainty and it is important that a fair and proportionate outcome is reached as quickly as possible. The sector needs clarity so that all parties can move forward with confidence.’

NFDA has consistently called for a practical and balanced approach to the issue and will continue to engage with the FCA and other stakeholders on behalf of its members as further details emerge.