| Link(s): | FCA launches £1 million campaign to raise awareness of motor finance compensation scheme | FCA Car finance claims | FCA FCA to consult on motor finance compensation scheme | FCA |
Context
The FCA has published a webpage regarding launching a £1 million campaign, letting motor finance customers know they don’t need to use a claims management company (CMC) or law firm to access an industry-wide compensation scheme.
Key points to note and next actions
- New research commissioned by the FCA shows that 79% of motor finance customers are aware that they may be owed compensation and 61% of a possible compensation scheme. 41% of those aware they may be owed compensation didn’t know they would not need to use a CMC or law firm if a redress scheme is introduced. Using a CMC or law firm to make a motor finance claim could cost consumers around 30% of any compensation paid. An analysis of the survey findings will be published when the FCAs consultation launches in early October. Respondents consist of previous and existing motor finance customers.
- As part of the FCA campaign, the campaign will feature radio and online advertising, the FCA is teaming up with influencers, such as Cameron Smith (@cazza_time), to get the message to consumers.
- The FCA plans to launch a consultation on the compensation scheme in early October. If the compensation scheme goes ahead, the first payments should be made in 2026.
- The FCA has also required CMCs to remove or amend 396 motor finance commission promotions between January 2024 and August 2025.