FCA faces legal pressure to disclose data behind £9.1bn car finance redress scheme

The UK Financial Conduct Authority is under mounting legal challenge over its motor-finance redress programme valued at £9.1bn. Volkswagen Financial Services, Mercedes-Benz and CA Auto Finance contend that the FCA’s reliance on sophisticated economic modelling has not been shared with affected firms or the Upper Tribunal, hindering their ability to assess the scheme’s legality. Consumer advocacy group Consumer Voice has separately demanded the release of all FCA communications with the Treasury, accusing the regulator of favouring lender interests.

In court filings, the FCA described the disclosure demands as “fishing expeditions” and defended the scheme’s design, which was trimmed to just over £9bn from an earlier £11bn estimate. Treasury officials reiterated the regulator’s independence, and FCA head Nikhil Rathi highlighted the tension between reluctant lenders and claim-management entities seeking profit. The disputes have delayed payouts that were slated to begin this year, adding pressure on households facing rising living costs.