NFDA Responds to Upper Tribunal’s Partial Suspension of Motor Finance Redress Scheme

National Franchised Dealers Association (NFDA) has noted the Upper Tribunal’s order granting a partial suspension of the motor finance redress scheme, pending the outcome of full legal challenges scheduled for December 2026 and February 2027. The partial suspension means that motor finance firms and dealerships are not required to calculate or pay redress until the legal process concludes, though businesses must continue to gather commission data and respond to consumers who are not owed compensation.

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

‘The Upper Tribunal’s decision to grant a partial suspension provides an essential operational pause for our members. We encourage Dealerships to remain highly proactive in managing customer inquiries and maintaining precise historic records. Long-term certainty ensures that businesses and consumers alike can plan for the future with confidence.’

NFDA has consistently called for a practical and balanced approach to the Redress Scheme and will continue to engage closely with the FCA to ensure its members have the guidance required to navigate this period.