Motor finance lenders face £11bn redress costs

The motor finance industry is likely to spend around £8.2bn in compensation and £2.8bn to implement the regulator's proposed scheme for borrowers stung by undisclosed high commission deals. Adam Samuel unpacks the process and worries there are too many loopholes.

Adam Samuel BA LLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may be contacted at adamsamuel@aol.com. You can purchase Adam's latest book 'Compliance - a Short Book' at www.amazon.co.uk/Compliance-Short-Book-Adam-Samuel-ebook/dp/B0CTRYBN1J/. For links to where you can buy the second edition of 'Consumer Financial Services Complaints and Compensation', see www.adamsamuel.com/writing.

7 October 2025 will almost certainly go down in regulatory history. On that day, the Financial Conduct Authority launched its consultation for an industry-wide review of auto-finance transactions, covering failures to disclose excessive and discretionary commissions along with ties that brokers had to lenders. [1] The regulator had to do this because of two pincer movements that it should have known about well in advance but towards which it seemed to point a blind eye to its telescope.