Regulatory background

The UK motor finance market is facing major regulatory change.  In 2024 the Court of Appeal ruled it was unlawful for dealers to receive commissions from lenders without disclosing them .  A Supreme Court judgement is expected in July 2025 and may trigger a mandatory motor finance redress scheme.  The FCA has already said that many firms breached disclosure rules when selling loans .  Any redress scheme must be comprehensive, fair and cost‑effective .  Analysts estimate compensation costs could reach £9–18 billion. Motor Finance Transformation is  needed – now!

What is a motor finance redress scheme?

A redress scheme is a process where firms review past lending, identify breaches and compensate customers.  The FCA plans to consult on a scheme covering both discretionary and non‑discretionary commission arrangements .  The scheme will assess factors such as the size of commissions, whether they were discretionary and how they were disclosed .  It aims to ensure consumers receive fair compensation without relying on claims management companies.

Digital motor finance transformation

At the same time, the industry is transforming digitally.  Lenders are moving from paper forms to online applications, cloud platforms and AI‑based decisioning .  Adoption of digital contracting has grown 104 % over four years .  Digital workflows speed up approvals, reduce errors and record disclosures automatically.  They help providers comply with rules by showing customers commissions and interest rates before they sign.

How Fiducia turns regulation into advantage

Fiducia embraces digital motor finance to stay ahead of regulation.  Our platform shows interest rates and commission structures clearly, so customers understand what they are paying.  Compliance checks run throughout the loan process and are updated as guidance changes.  If an FCA redress scheme is introduced, our digital tools can quickly identify affected agreements and calculate compensation.  Customers also enjoy a seamless experience.  They can apply online, receive fast decisions and manage their agreements in a secure app.

Whether you are a consumer worried about commission or a business looking for efficient finance solutions, Fiducia delivers digital motor finance that meets today’s regulatory demands and tomorrow’s expectations.  Contact us to learn how we turn regulatory risk into digital advantage.