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 - 6 August 2026
The FCA's Motor Finance Consumer Redress Scheme remains partially suspended following the Upper Tribunal's order of 2 July 2026, while legal challenges brought by four parties are considered.
The challenge is expected to be heard in either December 2026 or February 2027, with a judgment anticipated in the months that follow. The timetable will depend on whether any parties seek additional expert evidence or disclosure of information, and whether such requests are granted.
Until the legal process has concluded, lenders such as Conister Bank are not required to calculate or make compensation payments under the scheme. If the scheme is upheld and no appeal is lodged, compensation payments are expected to begin in 2027. In the meantime, lenders must continue to comply with all aspects of the scheme that remain in force, including undertaking the necessary preparatory work.
Customers do not need to take any action at this stage. No compensation calculations, offers, or payments will be made until the legal proceedings have concluded.
We will continue to update this page as the Tribunal process progresses and further guidance is issued by the FCA.
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 lenders, including Conister Bank, to use discretionary commission arrangements (DCAs) within certain motor finance agreements. However, Conister Bank did not use these arrangements throughout the entire period covered by the FCA scheme, nor were they used with all motor dealers.
As a result, not all Conister motor finance customers will be eligible for compensation under the Motor Finance Consumer Redress Scheme. Each agreement will be assessed in accordance with the FCA's requirements and the final outcome of the legal process.
While parts of the scheme are currently suspended, Conister Bank continues to undertake the preparatory work required by the FCA to identify and review relevant agreements and ensure readiness for any future requirements arising from the scheme.
If you have already contacted Conister Bank about a motor finance agreement, there is no need to contact us again. Your enquiry or complaint remains on record and we will contact affected customers if any further action is required.
We remain committed to treating customers fairly, complying with FCA requirements and keeping customers informed as further information becomes 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, as your enquiry or complaint remains on record.
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 Bank 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 appeals.
Do I need to use a claims management company?
No. You can contact Conister Bank directly, free of charge. The FCA has also advised that customers do not need to use a claims management company or law firm to make a complaint or participate in the scheme. You can find Conister Bank's details on the FCA's Car Finance list of lenders. Template complaint letters and emails are found on the FCA's website.
Do I need to take any action now?
No. Customers do not need to take any action at this stage. The FCA's Motor Finance Consumer Redress Scheme is currently partially suspended while legal challenges are considered by the Upper Tribunal. We will contact affected customers if any further action is required.
For more information about the legal challenge and what it means for customers, please read the FCA's Motor Finance Legal Challenge Factsheet for Complainants.
What happens if I am not entitled to compensation?
If you have submitted a complaint and are not entitled to compensation under the FCA scheme, Conister Bank will notify you in line with the timescales prescribed by the FCA. Where applicable, we will explain the outcome and any options available to you, please read the FCA's Motor Finance Legal Challenge Factsheet for Complainants.
What if I have already contacted Conister Bank?
If you have already submitted a complaint or enquiry about a motor finance agreement, there is no need to contact us again. Your complaint remains on record and we will contact you if further information is required or when we have an update on your case.
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.