| Link(s): | Motor finance scheme: legal challenge documents | FCA VW reply to the FCA response Mercedes-Benz reply to the FCA response CAAF reply to the FCA response Consumer Voice reply to the FCA response |
Context
The FCA has updated its Motor legal finance scheme legal challenge documents web page, and has published four industry responses to its motor finance redress scheme Grounds of Response, which the FCA served on 6 July 2026. The responses are from Volkswagen Financial Services, Mercedes-Benz Financial Services, CA Auto Finance UK, and Consumer Voice Limited.
Key points to note and next actions
- All of the Applicants remain in favour of regulatory intervention to ensure an orderly resolution of complaints and claims pertaining to motor finance commissions, but stress that both firms and consumers are entitled to expect that proper time and care is given to the design and execution of the Schemes to ensure that they are legally robust and operationally fit for purpose.
- The responses raise a number of challenges, not least in relation to the whether the FCA’s exercise of its discretion in this regard is within Statutory (FSMA) boundaries.
- Challenges include the presumption of ‘unfair relationship’, redress, the legality of the scheme, causation of loss, market integrity, compensatory interest, and standing/candour.