Earlier this month, the FCA extended its motor finance redress consultation deadline to 12 December 2025. The regulator said the move reflects feedback from lenders, manufacturers and consumer groups that require more time to analyse the market-wide data needed to respond effectively.
The consultation, published in October following the Supreme Court ruling in August, sets out a proposed industry-wide scheme covering agreements from 2007 to 2024. The extension is not a pause in momentum. It reflects the level of complexity involved in designing a fair and workable framework.
This article explains why the extension matters and what lenders should focus on during this period and beyond.
Read more: Motor Finance Redress: What the 1 August Ruling Means – and What Lenders Should Be Doing Now
The consultation is proving more controversial than many expected
Since the launch of the consultation, stakeholders have raised concerns about the scope of the scheme, the volume and quality of historic data, the treatment of non-DCA agreements, and the operational requirements and costs for implementing large-scale redress.
The FCA has acknowledged that analysing market-wide datasets will take time. This is consistent with what we are seeing across the sector. Many lenders are identifying gaps in older loan data, limited commission disclosure records, and inconsistencies in dealer-supplied information. Assessing these issues and reconstructing missing elements will require careful work.
The regulator’s decision to extend the consultation suggests it accepts that firms need more time to provide comprehensive and accurate feedback.
The extension does not reduce the need for preparation
While firms have now been given longer to respond, the overall timeline remains tight. The FCA has indicated that final rules will be published in February or March 2026, after which lenders will be expected to operationalise the scheme at pace. Paused complaints will also need to be resolved.
For that reason, the extension should be viewed as an opportunity to strengthen readiness rather than delay activity. Early preparation will reduce operational pressure once the final framework is confirmed.
Read more: FOS Reports Surge in Irresponsible Lending Complaints – What Firms Need to Do on Remediation
What lenders should focus on now
During the extended consultation window, and into 2026, lenders should continue work in the following areas:
- Reviewing the completeness and accuracy of historic motor finance data
- Identifying DCA, high-commission and contract-tie arrangements
- Assessing and, where possible, reconstructing disclosure records
- Segmenting loan portfolios by agreement type, dealer and data quality
- Determining whether customer tracing will be required for older cases
- Establishing governance structures for large-scale remediation
- Choosing the approach for redress calculations and determining how outcomes will be assured for customers
- Deciding early whether redress calculation capabilities should be built in-house or supported by specialist external expertise
These steps will position firms to respond more effectively once the FCA finalises the scheme.
How Broadstone can support you
The redress scheme will require firms to interpret historic lending records accurately and apply the final methodology consistently. Broadstone’s team supports lenders with:
- Data diagnostics and health checks – assessing the structure and completeness of historic motor finance data and identifying areas where clarification or reconstruction will be required.
- Redress calculation build – developing scalable calculators for bulk processing, with full audit trails, alongside bespoke models for complex or edge-case agreements. Our calculators will use actuarial principles to ensure fair outcomes for customers and withstand FCA and FOS scrutiny.
- Redress calculation review and assurance – providing actuarial and analytics-led assurance of calculation methodologies to ensure accuracy, consistency and regulatory defensibility.
- Regulatory engagement – producing clear, data-driven outputs that support constructive dialogue with the FCA and FOS throughout the implementation of the scheme.
Broadstone’s blend of regulatory insight and analytical and calculation capability helps lenders prepare for the demands of one of the most significant remediation programmes the sector has faced.
What comes next
The FCA’s extension recognises the genuine complexity of the proposed scheme. It does not reduce the scale of the task or the expectations on lenders. With final rules anticipated early next year, firms now have a short but valuable window to strengthen data, confirm exposure, and ensure operational readiness.
Contact Broadstone for support through the next phase of this process.
