What happened?
AM–Online featured commentary from Joe Norburn, CEO of TCC Group, in its article on industry reaction to the FCA’s redress scheme. The FCA has confirmed its final motor finance redress scheme will run as two parallel exercises, covering agreements from 2007–2014 and 2014–2024, prompting lenders and dealers to review the detailed rules and their operational impact.
Norburn warned this is “not a simple compensation exercise” but a large-scale delivery challenge, with around 12 million historic agreements expected to be reviewed.
Why does it matter?
Firms will need to move quickly to ensure fair, consistent outcomes while meeting the FCA’s expectation to compensate the majority of consumers by 2027.
The scale of the exercise, covering nearly two decades of agreements across two parallel processes, means lenders and dealers face significant operational demands alongside the need for consistent customer treatment.
Who is affected?
The scheme affects motor finance lenders and dealers with agreements dating from 2007 to 2024, and by extension the wider lending and consumer credit sector.
Key risks
- Operational strain from reviewing around 12 million historic agreements
- Inconsistent outcomes across two parallel redress exercises covering different time periods
- Missing the FCA’s expectation to compensate the majority of consumers by 2027
Actions to take
- Review the FCA’s detailed rules for both the 2007–2014 and 2014–2024 redress exercises.
- Assess the operational capacity needed to review historic agreements at scale.
- Put plans in place to deliver fair, consistent outcomes ahead of the FCA’s 2027 expectation.
Wider implications
Norburn’s comments frame the scheme as a delivery challenge as much as a compensation exercise, meaning firms’ operational readiness will be as important to the outcome as the underlying redress rules.
Recommendations
Lenders and dealers should treat the scheme as a large-scale programme requiring dedicated resourcing and consistent processes, rather than a routine compensation exercise.
Supporting sources
Frequently asked questions
How will the FCA's motor finance redress scheme run?
It will run as two parallel exercises, covering agreements from 2007 to 2014 and from 2014 to 2024.
How many agreements are expected to be reviewed?
Around 12 million historic agreements are expected to be reviewed.
By when does the FCA expect most consumers to be compensated?
The FCA expects the majority of consumers to be compensated by 2027.
Is this just a compensation exercise?
No. Joe Norburn describes it as a large-scale delivery challenge, not a simple compensation exercise.
- FCA remuneration reform explained: what CP26/27 could mean for firmsAnalysis & Perspectives · September 2, 2026
- IBS Intelligence: Why financial services firms face growing AI governance scrutinyAnalysis & Perspectives · September 2, 2026
- FCA CP26/28: What the AIFM regime reforms mean for wealth managers and firmsRegulatory Horizon · September 2, 2026
- Will Value for Money assessments change how advisers compare pension providers?Regulatory Horizon · September 2, 2026
- Lending & Consumer CreditTCC helps consumer credit firms evidence good outcomes, strengthen affordability and vulnerability frameworks, and manage complaints, remediation and regulatory risk. We support lenders with practical, regulator-ready compliance programmes that improve governance, customer treatment and operational resilience.
- Motor FinanceTCC helps motor finance lenders, brokers and providers assess redress exposure, prepare for large-scale customer reviews and strengthen complaints, affordability and Consumer Duty frameworks. We combine regulatory advisory, managed operations, specialist resource and technology-enabled assurance to deliver consistent customer outcomes, robust governance and regulator-ready evidence under heightened FCA scrutiny.