Motor Finance Consumer Redress Scheme
This page provides information for UK customers of Conister Bank in relation to recent developments concerning the FCA Motor Finance Consumer Redress Scheme. It is intended to offer clarity, reassurance, and transparency, and to explain what this means for Conister customers.
We recognise that media coverage can be concerning. Our aim is to ensure customers have clear, factual information and understand what, if anything, they need to do.
Important Update - 2 July 2026
The Financial Conduct Authority (FCA) has announced that parts of the Motor Finance Consumer Redress Scheme have been temporarily suspended while legal challenges are considered by the Upper Tribunal. As a result, compensation calculations, compensation offers and payments under the scheme are currently on hold pending the outcome of the legal process. Customers do not need to take any immediate action and we will continue to provide updates as further information becomes available.
What is the FCA Motor Finance Consumer Redress Scheme?
In March 2026, the UK Financial Conduct Authority (FCA) published its policy statement in regard to the Motor Finance Consumer Redress Scheme (PS26/3). The policy sets out how UK-regulated lenders must assess historic motor finance agreements and, where applicable, provide redress to impacted customers.
In July 2026, the FCA announced that parts of the scheme have been temporarily suspended while legal challenges are considered by the Upper Tribunal. During this period, lenders are not required to calculate compensation, issue compensation offers or make compensation payments under the scheme.
For those who wish to review the full policy statement or learn more about car finance claims, information is available on the FCA’s website:
What does this mean for Conister Bank UK customers?
It was common market practice in the UK for funders, including Conister, to use discretionary commission arrangements (DCAs) with motor finance agreements. However, Conister Bank did not utilise these structures throughout the period 2007 - 2024, nor were they used with all motor dealers.
As a result, not all Conister motor finance customers will be eligible for, or receive, an offer of redress under the scheme.
Conister Bank continues to review relevant agreements and prepare for any future requirements arising from the FCA's scheme. While parts of the scheme are currently suspended, we continue to undertake the work required to ensure we are ready to respond once the legal process has concluded and further guidance is available.
FAQs
Can I still make a complaint?
Yes. Customers can continue to contact Conister Bank regarding a historic motor finance agreement. If you have already contacted us, there is no need to submit another complaint.
Will all customers receive compensation?
No. Eligibility will depend on the specific circumstances of each finance agreement and the final requirements of the FCA scheme. Not all Conister motor finance customers will be eligible for compensation.
When will compensation be paid?
The FCA has stated that if the scheme proceeds following the legal challenge, compensation payments are expected to begin during 2027. The timing will depend on the outcome of the Tribunal proceedings and any subsequent decisions.
Do I need to use a claims management company?
No. You can contact Conister Bank directly free of charge using the link on this page. The FCA has also advised that customers do not need to use a claims management company or law firm in order to make a complaint.
No. Customers do not need to take any action at this stage. If you have already contacted Conister Bank regarding motor finance redress, your enquiry or complaint remains on record. We will contact affected customers as and when required under any final FCA arrangements following the conclusion of the legal process.
If you do wish to make a complaint in advance of the scheme starting, then please send your complaint to us at the email address below including details of your finance agreement.
Conister Bank operates in both the UK and the Isle of Man.
- The FCA Motor Finance Consumer Redress Scheme applies only to customers with UK‑regulated agreements.
- UK regulatory rules and court decisions do not automatically apply in the Isle of Man.
If you are an Isle of Man customer, please refer to our separate Isle of Man update for clarity on your position.
Our approach
We are monitoring developments closely and keeping our position under regular review. We remain committed to treating customers fairly, complying with FCA requirements and keeping customers informed. As further guidance or updates become available, this page will be updated to reflect the latest position.
Contact us
If you believe you may be affected and wish to ensure we hold your correct contact details, or if you have a general query, you can contact us directly.