Upper Tribunal to hear motor finance redress scheme challenge in February 2027

The FCA has a hearing date for the legal challenges to its motor finance compensation scheme. The segment covers who is challenging, what lenders must still do while the scheme is partially suspended, and the contingency the regulator is telling firms to plan for if the scheme is struck down. Relevant to anyone managing redress exposure or provisioning in motor finance.

• Upper Tribunal will hear the challenges between 16 and 26 February 2027, with judgment expected in the following months.
• Challengers are VW, Mercedes Benz and Crédit Agricole auto finance units, plus Consumer Voice represented by Courmacs Legal.
• FCA tells lenders to make financial provisions, engage auditors and prepare for the scheme being quashed with no complaint-handling pause.