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FCA partially suspends motor finance scheme after legal challenges

A car showroom in the UK
The court will hear the challenges either in December 2026 or February 2027. Photo: Anna Barclay/Getty Images

Four commercial parties have challenged the scheme – Consumer Voice, Volkswagen Financial Services, Mercedes Benz Financial Services, and Crédit Agricole Auto Finance.

The UK’s financial regulator has said it will partially suspended its motor finance compensation scheme after the Upper Tribunal agreed to hear challenges to the scheme from four lenders.

The announcement comes after the FCA said it had agreed terms with the challengers, who include major UK lenders such as

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