Update on the auto finance redress scheme as consultation closes

As the FCA’s consultation on the auto finance redress scheme closes, the industry is swinging between anger and resignation. The stakes are enormous – for lenders, advisers, and customers alike.

At the AFC UK Autumn Conference 2025, taking place on 25th November at County Hall, London, Auto Finance Connect will cut through the emotion and uncertainty with a forensic, evidence-based analysis of the FCA’s proposed redress scheme.

This essential session will unpack how lenders, advisers, and policymakers are responding, and what comes next as the process moves toward final rules in early 2026 and payouts by year-end. Delegates will leave clear-eyed about what to do now and how to plan for the next phase.

What you’ll learn

Grasp the key points of the FCA consultation — and how government and Parliament are challenging them.
Understand how lenders are responding, including emerging alignment and potential routes to judicial review.
Plan immediate and next-stage actions to prepare for likely 2026 payout timelines.

What we’re hearing right now

FCA: Positioning the scheme as “fair and proportionate”, with final rules due early 2026 and payments before year-end. Firms are being urged to “step up” while the FCA cautions that redress payments must not threaten viability, and warns consumers about opportunistic CMCs.

Government & Parliament: The House of Lords FSRC is pressing the FCA on proportionality, cost, scope, and process, warning of risks to market stability and predictability. The Treasury Select Committee is calling for new “name and shame” powers for uncooperative firms, intensifying political scrutiny.

Industry: Provisions are escalating. The Lloyds Banking Group CEO warns the scheme could wipe out 20 years of profit, with all customers apparently in scope — driving potential total costs of £11bn (up to £3bn administrative). Concerns are mounting that the process could undermine investment confidence and distort captive competition.

Lawyers & advisers: The consultation tone has been viewed as inflammatory but with room for FCA movement. Alignment is emerging across lender responses, potentially strengthening the case for revisions – or, if ignored, legal challenge. The compressed consultation timetable itself may become a procedural issue.

Meet the speakers

The Auto Finance Connect session brings together some of the sector’s most experienced and respected voices for a fact-based discussion on the FCA’s redress proposals and their wider implications.

Moderator: David Betteley – Head of Auto Finance Community, Asset Finance Connect

Speakers:

Wayne Gibbard – Partner, Shoosmiths
Alex Hughes – Country Manager (UK & Ireland) and Head of European Markets, CA Auto Bank
Rachael Jones – Director of Automotive Finance, Auto Trader
Arthur Kipferler – Partner & Managing Director, Berylls by AlixPartners

Together, they’ll unpack the facts behind the headlines, debate the key regulatory and legal questions, and share practical guidance for firms navigating the months ahead.

Why attend

This is the moment to get the facts, not the spin. Understand what the FCA, Parliament, and leading lenders are really saying, where the consensus lies, and how to protect your business and customers as the redress process moves into its next phase.

Date: 25th November 2025
Venue: County Hall, London
Find out more and book your ticket at: https://afcconferenceuk.com/