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Troubled Waters For The FCA’s Consumer Redress Scheme

Following the Supreme Court’s decision in Hopcraft v Close Brothers Limited [2025] UKSC 33—which held that car dealers and finance companies could not be liable in tort for undisclosed commissions, though the lenders may be liable where the commission arrangements created an unfair relationship with their customers within the meaning of s.140A of the Consumer Credit Act 1974 (“CCA 74”)—the Financial Conduct Authority (“FCA”) published its Redress Scheme on 30 March 2026, designed to offer an alternative route to compensation for would-be claimants wishing to bring CCA 74 claims.  The Scheme applies to regulated motor finance agreements created between 6 April 2007 and 1 November 2024.

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