Car finance compensation scheme faces delay after consumer group launches legal challenge

NewsUKHome NewsCar finance compensation scheme faces delay after consumer group launches legal challengeConsumer Voice announced on Monday it applied to London's Upper Tribunal to contest the redress schemeSam Tobin Tuesday 28 April 2026 12:18 BSTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popover{"translations":{"comments":"Go to comments","share":"Share","copyLink":"Copy link","bookmark":"Bookmark","removeBookmark":"Remove bookmark"},"showComments":true,"showBookmark":true,"articleId":"b2966349","articleMeta":{"url":"https://www.independent.co.uk/news/uk/home-news/fca-car-finance-compensation-scheme-consumer-voice-b2966349.html","title":"FCA’s car finance compensation scheme faces delay after legal challenge"}}Martin Lewis explains two ways to claim car finance compensationYour support helps us to tell the storyRead moreSupport NowFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.Read more{}A British consumer group has launched a legal challenge against a £9.1bn compensation scheme designed to redress motorists for mis-sold motor finance, a move described as "disappointing" by Britain's market regulator.Consumer Voice announced on Monday it has applied to London's Upper Tribunal to contest the scheme, which the Financial Conduct Authority (FCA) unveiled last month. The FCA's final bill was a trimmed-down version, following pushback from lenders and the overturning of a landmark ruling by the UK's top court.if (document.cookie.split(';').some(cookie => cookie.trim() === '__DEBUG__=true')) { console.log('Ad logs: "mpu1", renderedAtParagraph: 3'); }if (document.cookie.split(';').some(cookie => cookie.trim() === '__DEBUG__=true')) { console.log('Ad logs: "mpu1", injectedAtParagraph: 3'); }The FCA stated: "We are considering our approach and will set out more later this week." While lenders such as Close Brothers and Santander have decided not to challenge the FCA's redress scheme, which the regulator said would allow consumers to receive compensation quickly, Consumer Voice argues it "fails to deliver fair, adequate or lawful consumer redress and systematically under-compensates consumers".The group said in a statement that it believes "consumer redress has been minimised in order to protect lenders". The FCA said ‌the move could delay consumers receiving compensation ​and "also prolongs the uncertainty for ‌all involved, which is ⁠not good for investment or a ⁠healthy motor finance market".The main industry body, Finance and Leasing Association (FLA), said it had “concerns” about the programme but that it was choosing not to raise a challenge. (PA Wire)Yesterday, the main industry…

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