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October 29, 2025
The possible impact of the FCA’s motor finance redress scheme provisions: we are issuing this update to summarise the latest position in relation to premium finance and to highlight potential areas of focus for the FCA, taking into account the proposed provisions of the FCA’s motor finance redress scheme.
In our August 2025 Hot TopICS, we explained that when the FCA launched its market study in relation to premium finance in home and motor insurance, it was concerned that premium finance did not offer fair value to customers. In its update paper (examined in our August Hot TopICS), the FCA summarised and explained its initial findings and we await the FCA’s final market study report by the end of the year.
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